IPPs given billions through "under-table" dealings by the BN

I have mentioned this issue in my blog here under CORRUPTIONS on the 20th October 2007 about the IPPs enjoying billions of Ringgit through subsidy. The subsidy has been given out to the IPPs since 1997 and the government must announced the contract agreement signed with the IPPs and its terms for accountability.

I said in the said article "Petronas is losing money by subsidising gas to the IPPs, and since Petronas is government owned, that means it is the Malaysian public that is subsidising the profitable IPPs."

The following report was reported from Malaysiankini which revealed the "under-table" dealings of the BN government.
MPs query 'extreme profits' for IPPs
Fauwaz Abdul Aziz Jul 8, 08 6:00pm
The 13 independent power producers (IPPs) together made a profit of RM3.37 billion last year.
MCPX
Such "extreme" profits enjoyed by the IPPs came under scrutiny by members of parliament on both sides of the House today.
They wanted a review of the power purchase agreements (PPA) between the IPPs and utility firm Tenaga Nasional Bhd (TNB).
"I want to ask now whether we will review the extreme revenues going to IPPs or whether, if there are other reasons for this, the government would take over the IPPs that are operating presently," said Ahmad Hamzah (BN-Jasin).
In his reply to Lim Guan Eng (DAP-Bagan), Deputy Minister in the Prime Minister’s Department SK Devamany revealed that for the financial year 2006/2007, IPPs TNB Janamanjung and Segari Energy Ventures pulled in pre-tax profits of RM860 million and RM614.9 million.
Meanwhile, Powertek and Tanjung Bin Power made RM372.6 million and RM332.9 million respectively. Among the other big earning IPPs, Genting Sanyen Power and YTL Power Generation earned RM312.3 million and RM252 million respectively.
'Lost revenues'
Devamany also disclosed that 10 IPPs, from May 1997 to March 2008, received RM35.7 million in gas subsidies from national petroleum firm Petronas.
The subsidies were not awarded in the form of cash to TNB or Petronas, the deputy minister clarified, but are the latter’s ‘lost revenues’ since the government set the price of gas below market prices in May 1997.
The ultimate beneficiaries of the subsidies, however, are the "end-users" due to the lower costs of generating electricity and, thereby, electricity tariffs imposed on consumers, he said.
"Because of this, the ‘subsidies’ or gas price discounts... actually do not benefit the IPPs but the end-users in the form of low electricity tariffs," said Devamany.
He also said that the government had decided that TNB should negotiate with the IPPs to review the terms within the PPA and that a windfall profit levy would be imposed on the IPPs’ profits.