How Corruption Filters Down – Dirty Deals At Sarawak Energy

Sarawak Energy's General Manager, Phang Chung Tchet has placed contracts worth hundreds of million into a company in which he is a major shareholder

As all Malaysia now knows, BN/UMNO’s grip on power relies on the continuing support of two corrupted Chief Ministers in East Malaysia.

Both Taib Mahmud and Musa Aman are up to their eyes in money stolen from their people and from the destruction of their home states through unsustainable logging and oil palm plantation.

Many of those stolen billions are used to fund Malaysia’s corrupted ruling party, UMNO, to disrupt the opposition parties and to bribe voters at election time.

So, because these two Chief Ministers are able to deliver so much money and also the key number of votes that keep UMNO in power, Najib cannot move against them to deal with their law-breaking, even if he wanted to.

To the contrary the Prime Minister has brought these corrupted figures right into the heart of his government. Musa Aman’s brother is the Foreign Minister and Taib’s Jacob Sagan is a Trade and Industry Minister – both are tainted with timber corruption.

Leading by bad example

Electioneering UNMO-style - winning wallets not hearts and minds

One of the most pernicious effects of the way these greedy Chief Ministers govern’ is that their corruption has spread down unchecked.

The fish rots from the head.

So, it is hardly surprising to find that all Sarawak and Sabah’s senior administrators are now trying to get up to the same dirty tricks as their political bosses.

Najib Razak has to take direct responsibility for allowing this to happen in Sabah and Sarawak and for not allowing the MACC and law enforcers to do their job in bringing these villains to book.

How Sarawak Energy’s General Manager, Phang Chung Tchet, makes money from contracts 

Take for example our new revelation about the corrupt contracts handed out by Sarawak Energy boss Phang Chung Tchet.

Back on 24th August 2001, Mr Phang registered a new company called C.P. Power Sdn Bhd, of which he became Director and 80% shareholder.

Five days later, on 29th August 2001, a new subsidiary of Sarawak Energy Bhd was created, called Sarawak Energy Engineering Sdn Bhd.  This was based at Sarawak Energy’s headquarters and the Manager and a Director of that company from day one was also Mr Phang Chung Tchet.

Interestingly, and perhaps to counter certain rumours that have been circulating about graft, Sarawak Energy Engineering Sdn Bhd changed its name last month and moved to a separate premises.  However, the Manager and Director continues to be Phang Chung Tchet.

Sarawak Energy Engineering (now See Engineering) was set up as a 70% subsidiary of SEB, based at its Head Quarters and Managed by Phang Chung Tchet. But who owned the remaining 30%

So, the question is whether there is any connection between this 70% subsidiary of SEB, managed and directed by Phang Chung Tchet, and the other company that he had set up privately 5 days earlier, C P Power Sdn Bhd?

The answer, we discover, is yes.  C P Power Sdn Bhd is the owner of the remaining 30% of the shares of Sarawak Energy Engineering Bhd!

See Engineering, called Sarawak Energy Engineering until last month
The 30% shareholder is C P Power. Both C P Power and Sarawak Energy (SESCO) are Managed by Phang Chung Tchet

And, as we already know, SEB General Manager Phang Chung Tchet is an 80% shareholder of C P Power.

Therefore, 80% of 30% of the profit from all contracts handed by SEB to Sarawak Energy Engineering/See Energy goes right into the General Manager's pocket!

This means that 80% of 30% of any profit from contracts handed by SEB to Sarawak Energy Engineering/See Energy goes right into SEB’s General Manager’s pocket!

So, perhaps it is time to take a look at those contracts, which have been awarded since the setting up of Sarawak Energy Engineering back in 2001?

Over RM900 million in contracts! 

Reference to the official Construction Industry Development Board website shows that Sarawak Energy Engineering/See Energy Sdn Bhd has received well in excess of RM900 million worth of state contracts over the past decade.

The vast majority of these contracts have been handed to the company by Sarawak Energy Bhd.

As the General Manager of Sarawak Energy it is to be assumed that Mr Phang has a major and controlling influence over the decisions to place these contracts into the hands of a company of which he is such a huge shareholder!

After all, 80% of 30% of the profits adds up to a lot of money, when you are talking about nearly a BILLION RINGGIT in contracts!

H.Maklumat Projek:
Bil Tajuk Tarikh Anugerah Nilai (RM) Kilen
1. Tender For The Upgrading Of 33/11kV Transformer At Serian 33/11KV Substation, Serian (WR 13/11) 14-11-2011 RM 3,420,537.00 SYARIKAT SESCO BERHAD
2. Establishment Of 2nd Transformer & Overhead Line Termination Works At PMU 132/11KV Chukai, Terengganu & ITC Works At PMU 132/11KV Jengka 01-04-2011 RM 12,255,675.70 TENAGA NASIONAL BERHAD (PRECUMENT & CONTRACT)
3. Supply, Erection And Commissioning Of Biawak 11kV Substation (PLS-090137) 21-01-2011 RM 5,051,393.00 SARAWAK ENERGY SERVICES SDN BHD
4. Proposed 132KV Double Circuit Underground Cable (150MVA) Bulk Supply To KLIA 2 16-12-2010 RM 21,841,881.00 TENAGA NASIONAL BERHAD (PRECUMENT & CONTRACT)
5. Supply Erction And Commisionning Of Lawas 33kV substation (PLS-060094) 06-09-2010 RM 1,652,627.00 SYARIKAT SESCO BERHAD
6. Supply, Erection and Commissioning of 33kV and 11kV Reactive, Capacitive Compensators and Ancillary for Substations in Kuching (KUC-080039) 15-07-2010 RM 16,105,580.00 SARAWAK ENERGY BERHAD
7. Supply, Installation & Commissioning Of 275KV/132KV,240MVA Auto Transformer Replacement For PMU Kuala Lumpur (East) 25-05-2010 RM 4,405,934.00 TENAGA NASIONAL BERHAD
8. Supply, Erection & Commissioning Of Tg. Batu 33/11KV Substation Bintulu (PLS 050008) 01-04-2010 RM 7,143,479.00 SYARIKAT SESCO BERHAD
9. Tender For Supply, Erection & Commissioning Of Pahlawan 33/11KV Substation 03-09-2009 RM 1,372,825.00 SYARIKAT SESCO BERHAD
10. Tender For The Extension Ogf 33KV & 11KV ABB Switchgears At Sri Arjuna 33/11KV Substation 31-07-2009 RM 1,077,231.00 SARAWAK SESCO BERHAD
11. Similajau 275/33kV Substation for Switchgear, Transformers, Cables, Ancillaries and Civil Works 13-03-2009 RM 98,015,604.68 SARAWAK ENERGY BERHAD
12. Supply, Erection And Commissioning of Rantau Panjang 33 / 11 KV Substation 10-12-2008 RM 5,035,402.00 SYARIKAT SESCO BERHAD
13. Transformer Uprating At Bandong And Upper Lanang 33 / 11 KV Substation (PLS-080124) 10-12-2008 RM 8,896,808.00 SYARIKAT SESCO BERHAD
14. Tender For The Upgrading Of 33/11KV Transformers At Matang 275KV Substation, 15-10-2008 RM 4,134,575.00 SYARIKAT SESCO BERHAD
15. Supply, Erection & Commissioning Of 33KV & 11KV Switchgear, Transformer & Ancillary Equipment For Astana 33/11KV Substation 15-09-2008 RM 12,053,387.00 SYARIKAT SESCO BERHAD
16. Engkilili-Entinggan-Muara Tabuan 275kV / 132kV Transmission System 10-09-2008 RM 113,143,867.06 SARAWAK ENERGY BERHAD
17. Supply, Erection And Commssioning Of Salim 33/11Kv Substation (PLS-060200) 03-06-2008 RM 5,307,760.00 SYARIKAT SESCO BERHAD
18. TNB 755/2007 Supply, Erect And Comm. Of 90MVA 132/33KV Power Transformers And 300KVA Earthing Transformers With Asso.Ancil. Equip. TNB Transmission Substations – PMU Taiping Ind. And PMU Pengkalan (RIMA) 02-01-2008 RM 11,001,000.00 TENAGA NASIONAL BERHAD (BAHAGIAN PEMBAHAGIAN)
19. TNB.754/2007 Supply, Erect And Commissioning Of 90MVS 132/33KV Power Transformers And 300KVA 33/0.145KV Earthing Transoformers With Associated Anicillary Equipment For TNB Transmission Substations – PMU Kajang Estate And PMU Bandar Baru Salak Tinggi 02-01-2008 RM 10,523,500.00 TENAGA NASIONAL BERHAD (BAHAGIAN PEMBAHAGIAN)
20. The Supply, Erection & Commissioning Of 11kV Swithgears & Ancilliary Equipments For New Dewan Undangan Negeri Complex Intake Substation 21-12-2007 RM 849,489.00 SYARIKAT SESCO BERHAD
21. Mukah Coal-Fired Power Plant-Aluminium Smelter Plant Transmission Line Project. 30-08-2007 RM 6,772,500.00
22. Survey, Design, Supply, Delivery, Erection & Commissioning Of Approximately 7km Of Proposed Mukah Coal-Fired Power Plant – Aluminium Smelter Plant Transmission Line Project 30-08-2007 RM 6,772,500.00 SARAWAK ENERGY SERVICES SDN.BHD
23. Membekal, Menghantar, Memasang, Menguji & Menugas semula Peralatan Audio Visual Utk Ruang Pengajaran & Pembelajaran Di Pusat Pembelajaran Gunaan & Multimedia UNIMAS 20-07-2007 RM 1,595,359.30 CONCORD LINK REALTY SDN BHD
24. Extention To Muara Tabuan 132kV Substation – Balance Of 132kV Works.Contract NO. PLS040061, 24-11-2005 RM 2,540,000.00 PETI SURAT 149
25. Upgrading of 33/11KV Transformers at Kuching Airport 33KV Substation, 16-08-2005 RM 2,858,375.42 PETI SURAT 149
26. Notification of Award of Tender For Supply, Delivery, Erection and Commissioning Of Two Units of 3,000 kW-3,000 kW Diesel Engine Generating Sets And Associated Auxiliaries For Lawas New Power Station 19-04-2005 RM 19,031,286.15 PERBADANAN PEMBEKALAN LETRIK SARAWAK
27. Sibu-Tender For Supply, Install, Testing And Commissioning Of 30V DC Charge, Battery And DC Distribution Switchboard For Race Course 11 kV Substation (Outdoor) And New Hospital 11 kV Substation (Indoor) In Sibu 26-04-2004 RM 120,819.00
28. Supply, Erection & Comm. Of 33kV & 11kV S/gears, Transformers & Ancillary Equipment For Sejingkat 4 33/11kV Substation 02-07-2003 RM 5,190,094.87 PERBADANAN PEMBEKALAN LETRIK SARAWAK
29. Construction, Equipping, Commissioning & Maintenance Of The Sarawak International Medical Centre At Kota Samarahan 01-07-2003 RM 372,932,568.40 SARAWAK SPECIALIST HOSPITAL & MEDICAL CENTRE SDN. BHD.
30. The Construction And Completion Of The Proposed Double-Storey Semi Detached Houses And Associated Infrastructure Works For Area Block 7 At Lot 3986 And Main Access Road For Area Block 17 (Phase1) At Lot 3996 (Part Of P.L. 847) Block 9, Salak Land District Off Jalan Sultan Tengah, Kuching, Sarawak 26-06-2003 RM 467,905.00
31. Subcon – Cad. Merekabentuk, Membina Dan Menyiapkan Politeknik Mukah, Sarawak 09-06-2003 RM 10,500,000.00
32. Subcon – Tender For : Cadangan Merekabentuk, Membina, Membina dan Menyiapkan Politeknik Mukah, Sarawak – M & E Package 2H – Design, Construction, Completion And Commissioning Of The Proposed HT/LT Distribution And Substations Installation For The Proposed Mukah Polytechnic, Mukah, Sarawak. 09-06-2003 RM 10,500,000.00
33. Supply, Delivery, Erection & Commissioning Of 1 U Of 3,000kW – 3,300kW Diesel Engine Generating Set & Associated Auxiliaries For Limbang Power Station Extension 09-04-2003 RM 8,349,547.00 PERBADANAN PEMBEKALAN LETRIK SARAWAK
34. Notification of Award Of Tender – for Supply, Delivery, Erection And Commisioning Of One Unit Of 3000 Kw – 3,300KW Diesel Engine Generating Set And Associated Auxiliaries For Limbang Power Station Extension. 09-04-2003 RM 8,349,547.00
35. Bekalan Elektrik Ke Loji Perawatan Air Sg. Ular, Sebuyau 13-03-2003 RM 579,020.00 JABATAN KERJA RAYA BAHAGIAN SAMARAHAN
36. Proposed Bandar Samariang Development HT/LT Infrastructure Works To Area Block 16 13-03-2003 RM 299,580.00
37. OYA- Bkt. Lima Transmission Project – Contract No.C0029084 For Switchgear, Cable & Ancillaries – Contract No.C0029092 For Transformers 30-03-2002 RM 56,080,764.00 PERBADANAN PEMBEKALAN LETRIK SARAWAK
38. Kemena EHV Substation Project – Contract No. C0029181 For Switchgear, Cable & Ancillaries – Contract No.C0029190 For Transformers 30-03-2002 RM 49,452,183.00 PERBADANAN PEMBEKALAN LETRIK SARAWAK
39. Proposed 11KV Electricity Supply To Sesco Outdoor Sub-Station For Student Hostel/Apartment & Common Hall For Curtin Universiti Of Technology, Sarawak 12-11-2001 RM 241,860.00
40. Subcon – The HT/LV Turnkey Works For The Proposed Curtin University Of Technology, Sarawak 02-11-2001 RM 2,831,909.10

So, Mr Phang Chung Tchet clearly has very serious questions to answer regarding the clear and corrupt conflict of interest involved in his management of these two companies and the hundreds of millions in contracts that have flowed from SEB into a company he owns.

CEO of Sarawak Energy, Torstein Dale Sjotveit - corruption on his watch!

Likewise, there are burning questions for the Norwegian Chief Executive of SEB, Torstein Dale Sjotveit, who has clearly knowingly allowed this corruption to go forward (how could he not have checked the shareholders of this major subsidiary?).

However, Mr Phang will have taken his cue from his own political bosses in Sarawak.

The Chairman of SEB is none other than the Chief Minister’s own cousin Hamed Sepawi, who has received almost limitless state patronage in terms of plantation concessions, construction contracts, timber concessions and licences from a government that Taib completely controls.

When Taib and his cousin and nominees, like Hamed, are themselves so blatantly corrupt and are seen to get away with it, why should the underlings be expected to behave differently?

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