Sarawak Natives Lodge Corruption Complaint Against Norwegian Top Executive

Sarawak Energy CEO, Torstein Dale Siøtveit, faces corruption investigation in Malaysia – Siøtveit accused of graft involving dam contracts given to the family of Sarawak Chief Minister Taib Mahmud

 

(MIRI/MALAYSIA) A group of natives from Sarawak, Malaysia, has today lodged a corruption complaint against Torstein Dale Siøtveit, the Norwegian CEO of state-owned Malaysian power supplier Sarawak Energy. The group submitted their complaint to the Malaysian Anti-Corruption Commission’s office in Miri. They are accusing Siøtveit of abusing his position to favour companies linked to the family of Sarawak Chief Minister, Abdul Taib Mahmud.

Peter Kallang, chairman of the SAVE Sarawak’s Rivers Network, said to the Bruno Manser Fund: “We decided to lodge a complaint against Mr. Siøtveit because we found serious irregularities when we examined a number of contracts linked to the ongoing Murum dam project.” Specifically, the group are criticizing that, in November 2010, Sarawak Energy granted a MYR 99 million (USD 31.8 mio.) power transmission line contract to Universal Cable, a company linked to Abu Bekir Taib, the son of the Sarawak Chief Minister. Universal Cable is a subsidiary of Sarawak Cable, of which Abu Bekir Taib holds 42% of the shares. The contract was granted without public tender.

Also in 2010, Sarawak Energy sold part of its profitable manufacturing subsidiary, Sawarja Timur, to Sarawak Cable, for 16 million Malaysian Ringgit (USD 5.1 mio.). With Sarawak Energy being a state-owned enterprise, whose ultimate responsible is the Sarawak Chief Minister, Mr. Siøtveit acted in conflict of interest when selling off a subsidiary to a company so closely associated with the son of Sarawak’s strong-man politician.

The Sarawak natives furthermore criticize the role of Kenanga Investment bank, a joint venture between the Taib family-controlled Cahya Mata Sarawak (CMS) and Deutsche Bank, in financing Sarawak Energy’s dam program. Research by the Bruno Manser Fund has shown that Kenanga Investment bank was one of three Malaysian banks involved in the January 2012 issuing of MYR 2.5 billion (USD 803 million) islamic bonds on behalf of Sarawak Energy.

Torstein Dale Siøtveit has been CEO of Sarawak Energy since 2009, taking over from Abdul Aziz Husain, the brother-in-law of the Sarawak Chief Minister. Mr. Siøtveit has drawn massive criticism for pushing forward plans for the construction of 12 new dams in Sarawak that are threatening the livelihood of tens of thousands of indigenous peoples in the Borneo rainforest.

*Source from Bruno Manser Fonds Facebook page : https://www.facebook.com/notes/bruno-manser-fonds/sarawak-natives-lodge-corruption-complaint-against-norwegian-top-executive/438560226183432

Sarawak Energy’s RM30b Loan Stumps DAP

Who approved RM30 billion loan for Sarawak Energy Bhd which recorded an annual after tax profit of only RM330 million?

How did Sarawak Energy Bhd (SEB) manage to secure a RM30 billion loan when its annual after tax profits amounted to only RM330 million? Is it because SEB or Sarawak Electricity Supply Corporation (Sesco) is a state government- owned company?
Either way the RM30 billion loan to SEB has left Sarawak DAP stumped.“It is a very shocking figure. It may take 100 years to pay the loan plus the interests.“Even Sarawak’s annual revenue is only between RM4 billion and RM5 billion. How is it possible then to secure a RM30 billion loan?

“Surely there is something extraordinary here which needs full explanation,” DAP secretary Chong Chieng Jen said, adding that SEB chief executive officer Torstein Dale Sjotveit had to explain why SEB is “borrowing 100 times more than” its annual profit.
Chong said thus far both SEB and Sesco have been very quiet about the loan which was entered into in June last year.“Why is Sesco keeping so quiet on this matter? We want to know the purpose of the loan and who approved it,” he said.

Chong, who is Kota Sentosa assemblyman, added that the issue was of concern to Sarawakians who are worried that if Sesco cannot pay the loan, the whole of Sarawak will go bankrupt.

“How much is Sesco paying the interest on this loan? If you are talking about interest of 10%, Sesco is going to pay at least RM3 billion, which is equivalent to the state revenue.

“And if you talk about 5% interest, the amount will be RM1.5 billion. And this amount involves the interest only, but what about the payment for the loan?” asked Chong, who is also the MP for Bandar Kuching.

Government must explain

He also wanted to know how Sesco is planning pay for the loan given that its annual profit after tax was RM276 million in 2008, RM217 million in 2009 and RM336 million in 2010.

“That amount of profit is only about one percent or so of the loan that Sesco has raised,” he said, and urged the government to give a full explanation on the loan.
The state government under Chief Minister Abdul Taib Mahmud has proposed to build 12 more dams, excluding Bakun and Batang Ai hydro-electric dams, to produce 7,000MW in order to attract RM20 billion investments.

The new dams will be sited at Baram, Baleh, Belaga, Metjawah, Lawas, Tutoh, Limbang, Murum, Limau and Belepeh, Ulu Ai and Batang Ai extension in Lubok Antu.
SEB has been entrusted to build 12 more dams in Sarawak.

It is understood that the RM30 billion-loan could be used to finance the construction of these dams.The Baram dam alone is expected to cost RM4 billion.

* Taken from Free Malaysia Today portal : http://www.freemalaysiatoday.com/category/nation/2012/07/18/sarawak-energys-rm30b-loan-stumps-dap/