"How can you lose so much money when you are a monopoly?" - AnonymousObviously you can. Ask Che Khaleb. Tenaga Nasional posted a net loss of RM944 milllion in the first quarter to November 30 2008 owing to weak electricity demand, higher coal prices and a weak ringgit.
Read here.
Tuesday, January 20, 2009
A monopoly's RM944 million loss
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And it is as usually "Abdullah Badawi's fault" right Rocky?
ReplyDeleteGo, you intrepid attack dog of Mahathir, go!
Get some competent manager in. If the present management think they can't run the business, let somebody else manage it.
ReplyDeleteConcerned Citizen
Rocky,
ReplyDeleteAsk him to run a burger or mamak stall for basic financial management.
Should have put him in kerusi electric shock punishment for failing to manage TNB.
What?? weak electricity demand????
ReplyDeleteHahaha...
I thought TNB (Khir Toyo included) were fighting tooth and nail with the Selangor state goverment on the issue of the Central Area Reinforcement (CAR) project in Rawang saying the present Selangor MB's (Tan Sri Khalid) attitude as immature.
Look what these 'matured' person said:
Khir Toyo:
"We don't want a situation where just because of 20 people,
Selangor residents will face a big problem of power supply shortage,"
TNB president and chief executive Datuk Seri Che Khalib Mohamad Noh had voiced the utility company's concern that if the project was not completed, Selangor, Kuala Lumpur and a large part of the peninsula's southern region would be facing power supply disruptions for three to four months.
hmmm...what shall we call these fellows yah?
and this is the performance of a guy who is supposed to be the frontrunner of Petronas' CEO post?
ReplyDeleteGet real!
Salmah
bro,
ReplyDeleteJust another ala Tony Fernandez CEO. Given the monopoly to control the industry, but yet when failed, try to cover it with 1000's of excuses and ideas instead of trying to solve the actual problem.
Too many KJs in our country la
Not TNB problem. TNB has to pay crony IPPs. Take our money and hand over to some on else pcokets.
ReplyDeleteHighway robbery. Or should i say high tension robbery. Zap!
I believe...
ReplyDeleteOUR ECONOMY IS STRONG
WE HAVE NO ECOMONIC CRISIS...
Regards,
To avoid tariff reduction this is the best excuse they can provide....total bluff. Shit
ReplyDeletethis is what happens when u have a lopsided agreement that favours IPP , in the end rocky....everything comes from our pocket eventually...now ask urself who's the bugger who create this ?..
ReplyDeleteThe loss is bigger than that. We are all subsidizing their losses. TNB makes RM500 million from its operations meaning from us but loses RM1.444 billion. Believe it or not if I recall directly that CEO and management was paid a hefty bonus just last year. Now I must proposed that they should be sacked. We must get people like Idris Jala to managed, we cannot keep on subsidizing their losses.
ReplyDeletePathfinder
KICK HIS @RSE!
ReplyDeleteIs this another ploy getting it ready to be "privatise" so that some more UMNO doggies can get their "pension" set before they are out of power and the current oppositions come in to rule the country?
Dog Shit stirrer.
So, who will pay for the rm944 million loss?
ReplyDeleteWill it be from the TNB's CEO allowance? or higher tariff?
how much is TNB's CEO allowance n bonus again?
-angry rakyat
how come demand fr electric can go dawn....
ReplyDeleteAnother folly of Mahathir. Mahathir going to issue a statement saying that Pak Lah is the cause of TNB's loss. Najib is not. Sick and Sick of this old man. Mahathir is father of all troubles in Malaysia to the extend that it cannot be fixed anymore. He is not father of development as claimed by many. May God Bless Malaysia.
ReplyDeleteRocky
ReplyDeleteSomething must be WRONG somewhere.
to think he was up for a hefty pay raise number of months back..
ReplyDeleteche kalib have not even earn the money that he is earning now putting a monopoly in shit as deep as it is in now.
Foreign exchange translation losses account for the bulk of the overall loss. Why does TNB keep foreign currency loans when its revenues are 100 pct in RM ?
ReplyDeleteGodfather
Zoom back che Khalid track record..MD of KTMB ( under Merak Unggul ) , KUB and now TNB ..lost..lost..lost...Fire MOF 2.
ReplyDeleteoh yes!if you cannot make money blame on IPP..surely anwar macais wont blame you.
ReplyDeletebrad
True Malaysian...
ReplyDeleteYou sounded like Hindraf
Jenahak
Rocky, years ago I was working in a company which supplies some services to one of the IPPs. I was told from the senior management that their IPP division is the cash cow for this conglomerate. For the simplest reason on earth, the contract signed between TNB and the IPPs, allowing the IPPs maximum profit on sold and unsold electricity. I have to agree, this is Mahathir's era. ML
ReplyDeleteaccording to a bloomberg report, tnb generated 54 per cent of its electricity from gas, 28 per cent from coal and 17 per cent from hydroelectric power in the year ended august 2008.
ReplyDeletepetronas sells gas at subsidised prices to tnb (and to the other ipps). imagine how much more tnb's loss would be if it had to pay "market prices" for gas from petronas.
much of tnb's coal comes from indonesia and australia. it is thus at the mercy of coal producers in these countries - no subsidies a la petronas!
tnb had borrowings of rm24 billion as at nov 30, 2008. about half of this debt is denominated in us dollars and japanese yen. the ringgit has lost 9.5 per cent against the us dollar and 23 per cent against the yen over the past 6 months.
how much is tnb paying out to the ipps every month? is it selling the electricity it gets from the ipps at a profit, given that the govt fixes the prices that tnb charges for electricity? or is buying electricity from the ipps a built-in loss for tnb?
maybe the govt thru khazanah should emulate what temasek did in singapore and put tnb's generating plants up for sale. outside parties could perhaps run these plants more efficiently with less manpower and better technology.
the ceo of tnb is playing with the cards dealt to him when he assumed office. better ask the govt how it is going to fix the problem. if it has a clue, that is.
Bro,
ReplyDeletedid the doubling of this Che Khaleb's salary and remuneration, i think, last year a contributing factor?
This CEO had also nonchalantly said losing RM150 million (i think) on a botched coal deal was also a "small matter" and will not affect profitability.
So i am not surprised, with this kind of mentality, if losing millions and/or billions is not something to lose sleep on.
Malaysia Boleh! And this loser is ear-marked to head Petronas rather than led out to pasture? Oh brother! No accountability! No sacking!
i want the job for half his salary and that would immediately put Tenaga back into profitability!!!
Half cannot, one-third can ah? But Tenaga only break-even okay. hehe
also..
ReplyDelete1) The Central Area Reinforcement (CAR) project by TNB in Rawang costs RM400 million.
2) The 'matured' statements by Khir Toyo and Che Kalib were made on Dec 08. Need two to tango..right?
and after one month, now (Jan 09) TNB can say electricity demand is weak!
IPP lose money tak?
ReplyDeleteBtw muhydin said (actually all ministers say lah) economy still growing 3.5%. A few years ago he said we will in "a few years" time EXPORT rice. Now a few years later nak makan pun tak cukup... cam ni boleh percaya ka?
nick
What is RM 944 million to the CEO. Peanuts. Afterall, it's not his money. He have his salary increased with hefty bonus. Who cares if the co is not making money. As long as his income goes up.
ReplyDelete"A monopoly's RM944 million loss"
ReplyDelete= An indicator of how useless the management is.
Amok,
ReplyDeleteReplace Che Khalib with another
Idris Jala pleaseeeee.
BTW, the KPI of GLC utilities companies like TNB, IWK, Telekom and syarikat Air should be
based on their efficiency and not on profits as it will effect the cost of living of the rakyats, whereby these items are the basic needs of human.
The actual reason for the privatisations for the GLCs is to improve the efficiency of it's services and gain confidence from FDI on our infrastructure while at the same time to change the mentalities/services of the utilities companies staff on their responsibilities to the rakyats.
Unfortunately Che Khalib failed to tackle all these issues.
Just like Dolah and KJ failed to read the sentiments of the rakyats.
kalu rugi dia orang potong gaji ke naik gaji?
ReplyDeleteHI ROCKY
ReplyDeleteMAYBE YOU COULD DO US ALL A FAVOUR BY HIGHLIGHTING / RECAPING THE CONTRACT BETWEEN TNB AND THE IPPS' WHICH WAS AUTHORISED BY MAHATHIR
I'M SURE YOU COULD USE YOUR CLOUT TO OBTAIN & REVEAL THE DETAILS
REGARDS JAY ZEE
TNB, the monopoly lost tons of money and the CEO blamed it on the "weak demand" for electricity... [Hoi! You put batang kayu pun as CEO ini macam pun boleh lah!]Wonder what was his justification for asking a 100% pay hike few months back? Just wait when he would be salivating for his golden handshake/parachute soon and lets see what/who's he blaming it for? I wonder why intelligent people like Azman Mokhtar picked people like Che Khalib as CEO of GLC? Definitely NOT for the brains!
ReplyDeletethe first thought were the electricity thief of whom the TNB are aware off that cause to run at a lost. all TNB electrical meters are not being calibred yearly and the board are badly managed.
ReplyDeleteJust another silly excuse to raise electricity tariffs.
ReplyDeleteA GOOD MAN DOES NOTHING.
Run by a Malay ? Right and appointed by ....... ? Shall I say more.
ReplyDeleteChe Khalib dungu itu sebab rugi sampai dekat 1 billion.
ReplyDeleteSpeaking of money, check this out, how a DAP state assemblyperson (ADUN) who works closely and dedicatedly with her mixed constituency, allocated her state allocation of RM375,000 in detail, sen by sen.
ReplyDeleteHas Mukhriz Mahathir and Khairy Jamaluddin done anything close to this? Answer --> Zilch.
This is why Pakatan Rakyat will genuinely capture the people's heart because they silently work diligently in the background, with no fuss and rhetoric or show like the Barisan leaders. They are genuinely concerned with the people's welfare, tak kira Melayu, India atau Cina.
Now, who do Barisan Nasional politicians work for? For the interest of the Malays, primarily (in the case of UMNO), Chinese in the case of MCA, and Indians in the case of MIC (or not necessarily at all, since MIC has been duping the Indians big time). And when they are not busy championing their own race's interest, they partying with their fat-cat capitalist/elite/aristocratic pals.
Verdict: Time to move on and change Malaysia for the better while we still have the chance.
Enough of Najib. Enough of Mukhriz. Enough of Khairy.
kesian Che Khalid. Jangan lah marah dia.
ReplyDeleteAzman Mokhtar patut naik kan gaji CK dua kali ganda lagi, baru dia kerja kuat utk bagi TNB untuk.
Dulu kau orang juga hentam CK bila minta gaji sampai RM100k.
Azman Mokhtar pun tak jadi bagi naik gaji. Tapi dia bagi CK elaun lebih sama banyak dengan RM100k yang CK minta.
Itulah corporate governance dan transparency bawah pak lah
TENAGA says high fuel cost. Get them to make public their coal and diesel purchase contracts. Then we will an insight as to why they have incurred losses.Ramlax
ReplyDeleteVery soon Malaysian will have to send their wife and daughters to SG, TW, HK, OZ, NZ, ARAB to be maids....Thanks to UMNO & BN.
ReplyDeleteBlogging from my mini notebook in Washington DC while waiting for Barack Obama's swearing in.
I love to play MONOPOLY. its a fun game.
ReplyDeletehttp://justmypersonallookatlife.blogspot.com/
Is this an early warning signal that the GLC Boys are going the same way as the Daim Boys, a decade ago?
ReplyDeletesome of the comments here were just stupid and dont know how the electricity industry in this country works I suggest get the facts right,so that you wont look stupid reading your own comments.
ReplyDeleteIPP deals and coal price were the major contributor plus forex losses.
I think CK has tried his best,revenue is increasing every year,but if not for the IPP,TNB share could shoot up above 14RM.
just mt thought.
public.
While the world is facing shortages of energy, here we have an energy company running at a lost even though on monopoly. Utterly unthinkble. The ACA should immediately rush in before someone become instant millionare.
ReplyDeleteRocky,
ReplyDeleteChange CEO and CFO, their salaries are hundred thousands per month despite of making loses.. Making last year profit due to tariff hike. CHairman should step down too, after all he has been the ministry for this portfolio more than 11 years, retire la and stay at home. Was told Leo Moggie managed to get another extension for 2 more years by Pak Lah.. Tak ada orang lain ke? Banyak mana lagi nak kumpul duit.. Tak cukup2. May be to do some tasks in TNB for Scomi for coal transportation, millions RM contract.. I bet before March 2009, need to extend as many as his kuda in GLCs in order to keep his family's interests...
Change Needed Badly
Fish Head Theory
Rocky,
ReplyDeletePlease dig into the sweet deal that TNB (under his predecessor and Tun Dr Mahathir)got owning a Kalimantan Coal Mine for peanuts which he sold for a 100million or so profit which has resulted in TNB's loss of income to the tune of billions for having to buy coal now. This stupid monkey buys coal for a fortune instaed of owning a whole mine which could give 20 years worth of coal for TNB. Then he raises our rates. Even an idiot can do better.
Please dig deap into it. He should be prosecuted for his stupid judgment trying to wipe out his predecessor's achievments for TNB.
Bro,
ReplyDeleteI think most people get it wrong on TNB and IPP
1. You shouldn't judge the management because of the losses. TNB can't surrender the yen loan for a simple reason that it carries low interest rates and secured through G-G arrangement. Yes, when yen rise, there will be translation loss (ie paper loss on the value of the loan). Later when yen fall, there will be translation gain.
2. IPP made tonnes of money not because they are efficient, it is the contrary. You only have to see the operation records of some them. They made obscene amount of money because they pay fixed gas price and their earnings are guaranteed by the (stupid) government. Even if they pay market price of coal, they will transfer all their cost to TNB to pay. hey it is no brainer. If you have an IPP license, you'll be billionaire too. all you have to do is appoint an operating and maintenance company (could be another TNB unit) to run it and do the maintenance for you. Every year you collect your money from TNB and even after you deduct the cost of contractor who maintained and ran the power station, you can still made tonnes of money. Only Ah Long can make as much profit as IPP. even Ah Long has business risks if the borrower ran to michael chong and get their story published in newspaper. for Ah Long they will have to spend more on red paints if borrower don't pay. For IPP, they will just have to ring a few people to get TNB to pay. The agreement is watertight.
3. So Malaysians wake up. you are being ripped off by IPPs as you sleep (if you use air-cond or fan) and wake up or taking a hot shower. The bulk of the money you pay for your bill will go towards paying IPP. And guess where would IPP owners go with their profits? Well they go on spending spree...buying hotel, shopping centre in Singapore or maybe a theme park in europe or casino. Maybe..just maybe...once a year throw a new years' party to pay back those (stupid) Malaysians.
4. Therefore giving more license to IPP will not help either as long as contract is not transparent and has the guaranteed clauses. Ask YTL how much yield they get from its singapore power plant. They can afford to buy it at low yield simply because they made so much profit from their Msian IPPs. Get it?
5. And who's bloody mistake for allowing this to happen? you be the judge. Put the money where your mouth is!
Goblog79
If TNB practise meritrocracy they would have a chance of better performance but too bad they apply the "tongkat culture" introduced by Bapa Najib & enforced to perfection by PM Mamak.
ReplyDeleterocky,
ReplyDeleteche is being nice. ask him how much TNB has to pay the IPPs. with 50% reserve margin, if the IPPs are scrap, how much would Tenaga make?
as usual,you never pose the right question to protect the "Mugabe" of Malaysia. You knwo who that guy is, dont you?
Bangsa Malaysia
xir,
ReplyDeleteso easy to blame badawi and his son in law. they are as guilty as the oldman who led the country into this morass. thats no doubt about that. yet, the tyrant aka "mugabe like" has never been blamed coz he is coated with teflon.
think about it, xir. who gave us the never ending toll and after being pointed out how wrong he is, his excuse is that the cabinet consists of financial idiots? who gave us the IPPs? Who gave us Daim's boys?
i rest my case,ok.
bangsa malayia
OK, according to 2008 accounts they have borrowings of RM24Billion, but howcome tnb can lose RM1.5billion. The simple maths will tell us we have to sky high rates to pay off that kind of debts. How the hell did they get into that kind of debts? Probably bloody Stupid or damn corrupted??
ReplyDeleteBengang
OK, according to 2008 accounts they have borrowings of RM24Billion, but howcome tnb can lose RM1.5billion. The simple maths will tell us we have to sky high rates to pay off that kind of debts. How the hell did they get into that kind of debts? Probably bloody Stupid or damn corrupted??
ReplyDeleteBengang
Heads should roll. The CEO and the Divisional Heads and Heads of subsidiaries should resign. If they are unable to anticipate the international trend, they are not worth the money, less the increments, adjustmens and bonuses.
ReplyDeleteIf I have to tell you that retaining a reputable Investment Banker will help prevent the forex and commodities losses even before it happened, I think I should sit the the top chair in TNB!
Anyway, speaking as a consumer of electricity, I say its time for TNB to lower the tariffs especially since their gas are subsidised by Petronas.
Hi there,
ReplyDeleteLost of RM944m is one thing, no body ever wonder the deposit we every household paid for. Does this
belong to TNB or to we malaysian. can anyone respond. Thanks.
Che Khalib,
ReplyDeleteKau balik kampung pelihara kambingla. Jangan beri alasan kerugian untuk menaikkan tariff elektrik.Kau kata duit itu lesap disebabkan foreign exchange.Bunyi macam tak berapa logik. Aku rasa kau dah invest dengan itu Ponzi hedges fund Madoff yang dah hanguskan duit pelabur asing berbillion dollar.Kenapa kau tak kata kerugian disebabkan koletral sub prime crisis US.
Kau ambil aku sebagai konsultan TNB,dgn service RM6 million aku boleh turnaround kau punya nasib.
Penjual kuaci.
It is Pak Lah's fault as he is the CEO of GLC, right rocky.
ReplyDeleteto Pendekar Tanahair (or is that tony and kj in disguise),
better go away fast before Suruhanjaya Rasuah catches you... go to your master Pak Lah... go.. shooh..
I think its true that Malaysians have short memories. Is there no one old enough to remember that there was a finance minister in the 1980s who was known as Mr 10% who later fell out with Dr M. He was always in Japan arranging japanese financing. It doesn't take much imagination that he could easily forced TNB to take yen loans in return for personal benefit. Sorry to say it but it looks like corruption has got us into this mess yet again!
ReplyDeleteI think GLC should be run by a person who knows the industry. Sime Darby should concentrate what it knows best ie plantation.Plantation only.Problem starts when they were trying to diversify ie. greed. Imagine going into power generation and banking.
ReplyDeleteSame for TNB.It should run by an engineer-cum-manager, as they are in power generation business. THey know best how much power is needed. Problem starts when outsiders started to bulldoze in.Thats why in western countries,they dont have problem managing their electricity industries as only the expert in power business run the business. The government gets the tax.Simple.
o-ba-maa.
ONLY RECENTLY WHEN THE CEO WANTED A 100% RAISE IN PAY, HE CLAIMED THAT THE CO WAS MAKING TONS OF MONEY. WHEN NO RAISE CAME, SUDDENLY THE GRAPH GOES DOWNWARD. ARE THEY TAKING US FOR FOOLS, WHEN THEY HAVE ALL BACKINGS OF THE GOVT TO HELP THEM AND ON TOP OF THAT THE OIL CAME DOWN FROM US$140 TO US$40. YET THEY CAN STILL CLAIM THAT THEY ARE LOSING MONEY. ARE THEY ALL GREEN HORNS. THIS IS TYPICAL OF THE GLCs, THEY'RE JUST NOT FIT TO BE SITTING THERE AT ALL. THEY MUST ALL LEAVE SO THAT THE COs CAN BE HANDLED BY THE CLEAN, CAPABLE & GOOD PEOPLE.
ReplyDeleteTOPAZ
Agree with goblog79.
ReplyDeleteIPP is the real culprit,dont blame TNB.Imagine how much money TNB can make if there are no IPPs,and with that our tariff is much lower.These IPPs are run by businessmen,they only interested in making money,but always TNB get the critics by the public,even if they have been improving year after year in terms of revenues.Why dont we 'attack' the IPPs?Why quiet on the IPPs?.Its scary. All I can see they are after TNB again.They want to see TNB broken into pieces so that they can get the share of it.They want TNB to be left with Bangsar office only. These vultures.
We are talking about national and security interest here.Be careful.
mak anon.
We need to send a clear message to the govt.. As law abiding citizens, let's do something very drastic...
ReplyDeleteLet us not pay tax for Year 2008.. Say no to tax paying.. Let's see how the govt dies standing...
Alasan TNB tak nak turunkan tariff elektrik la tu.
ReplyDeleteChe Khalib, TNB rugi pasal Gaji hang n kroni hang tu tinggi sangat.
Dahla gaji rm 60-70,000 sebln, belum lagi2 gaji GM2 hang yang membuta kat tnb tu.
Ni taktik sama ada nak penaikkan lagi tarif atau nak buang staf TNB. Tapi yang pasti TNB terbeban besar sbb bayar gaji kat hang n crony hang.
Aisay .... How to run TNB when they have all this one sided agreements with the parasitic IPPs. Heads you win, tails I loose.
ReplyDeleteThe government should make public ALL agreements, be it IPP, water utilities, TOLL etc etc. And dont make it like only 5 people can view for 2 bloody hours etc like the toll.
Scan and pdf the docs and post it on internet lah!!! Bloody cowards.
Anon 1.08
ReplyDeleteIf Dollah and KJ were soooo good and sooo sincere to help the rakyats and to rectify problems create by the old man, then why they didn't do something about it much much earlier.
Bila nak kena tendang baru sebuk nak bangun tido...
I rest my case.
Open your eyes. You guys are barking at the wrong tree. You can get the best manager in the world for TNB but it'll not change its fortune unless we get rid of the lopsided PPA with the IPPs.
ReplyDeleteJimah Power is coming on stream this year but TNB doesn't need it but TNB must pay Jimah Power RM500m whether TNB uses it or not.
Guess who is the creator of IPP ?
Bru,
ReplyDeleteYou or anyone can spin the story as you/he like but at the end of the day check the facts!
Goblog79's take is correct!
We have such problems like Tolls, AP, Water concess. and countless more.
Gogo 72
Well Bro,
ReplyDeleteThis madness is cause by the IPPs. No risk business i can say. And this year alone, TNB is expected to pay IPPs RM 12 Billion. Wow!! what a madness...
TNB CEO should push Energy Commisioner & Govt. (EPU) to start back the negotiation with IPPs. Why need to increase the reserve margins when you're supposed to bring it down??? You can't keep on increase the tariff and demand the gas price to be reduced while this BIG issue not being solved.
-Semangat Padi-
Only in Malaysia... Only in Malaysia my fellow citizens. Beats me but I suppose if we are lead by idiots, we naturally have idiots running monopoly companies too. So, what do you expect from idiots!
ReplyDeleteBRO ROCKY,
ReplyDeleteWHAT RUBBISH IS CHE KALEB IS TALKING ABOUT, SORRY TO SAY BRO, BUT HE IS NOT FIT TO BE THE CEO OF TNB, HE DONT HAVE IT.....
HE IS PART OF THE CLOWN FROM 4TH FLOOR CLUB.....
Salam Rocky,
ReplyDeleteThey will start calling the home like an "along"for settle the overdue bill."Untung aku punya rugi enkau orang punya"!!!bagui punya kompeni.....
Above all, he should have integrity to resign. RM1 billion is not a small amount. IN other countries, that would be the CEO's last appearence. But not in Malaysia.
ReplyDeletePT. Dasa Eka Jasatama (DEJ) which is subsidiary of TNB Coal International Ltd (TNB Coal) was having Cooperation Agreement with the coal concession owner in Indonesia. Under this Cooperation Agreement, DEJ was given the right to do the mining, transporting & marketing of the coal and DEJ also is responsible for all the obligations of concession owner to the relevant Indonesian authorities. TNB coal acts as the marketing arm of DEJ which sell the coal to TNB Fuel Sdn. Bhd (TNBF) which is responsible for fuel procurement in TNB.
ReplyDeleteDEJ started the operation in 2003 producing about 500,000 tons of coal during the first year of operation. In order to increase the production capacity, DEJ has eventually through the Mining Contractor invested in coal processing facilities, 35km hauling road as well as new barge loading facilities and the mining contractor was paid on per ton basis through the coal production. The production capacity was increased to 1.5 million tons in the second year of production and 3 million tons in the subsequent year. Since TNB Coal is a subsidiary of TNB, the long term contact price for the coal to TNBF has been fixed at USD 30 per ton.
The acquisition of DEJ was finance through a syndicated loan arranged by Standard Charted and was based on project financing without the parent company guarantee from TNB. DEJ has been paying the loan on schedule without any difficulties. When the new CEO of TNB came in 2004, the syndicated loan with Standard Chartered was fully paid and refinanced in 2005 and new loan was arranged with Mizuho Bank and TNB was put as a guarantor to this loan.
In May 2006 for reasons only known to the TNB CEO, all directors of DEJ have been suspended and Indonesians was assigned to take over the management of DEJ. (Personnel from this company came to DEJ office in Jakarta and asking the TNB personal who was managing the company during that time to pack his belonging and leave the office). The TNB personal was shocked and contacted the DEJ’s Indonesian director who was then call the police. The police later sealed the office. In retaliation to the sealing of DEJ office by the police in Jakarta, TNB then instructed the bank to freeze the account of DEJ resulting in DEJ was not able to fulfill their various obligations as agreed in the Cooperation Agreement with the coal concession owner earlier resulting in defaulting the contract. Since DEJ has defaulted the Cooperation Agreement, the concession owner then cancelled the agreement and took back the concession and resulting in TNB lost of hundreds of million. In order to cover up this big mistake, TNB CEO then claimed that he was cheated by the Indonesian concession owner.
Currently the coal mine is still in operation producing 3.5 million ton per year and the coal from this mine was sold at USD150 per ton. When TNB took over the mine before, the coal reserve was about 30 million ton but now after more than 10 million tons has been taken out from the mine, the reserve was found to be more than double as they could go deeper into the ground. With the current market price, TNB Coal would have lost billions of dollars in revenue. TNB would still enjoying the cheap coal price from the mine if not because of this blunder and not necessary to increase the tariff.
Arang Batu.
Rocky/People,
ReplyDeletePlease do not hentam the CEO, he is doing the best he can. I mean, what to do if the guy has hit the ceiling on his capacity to steer/manage/guide TNB.
The past few years has been easy on him, like some one said even if a sebatang kayu made CEO, the sebatang kayu will perform. because the economy was good.
Just look at Che Khaleb track record before he became TNB CEO, he started his career with Messrs Ernst & Young and later joined Bumiputra Merchant Bankers Berhad. Between 1992 and 1999, he served in several companies within Renong Group, including Projek Lebuhraya Utara-Selatan, HBN Management Services Sdn. Bhd., Renong Overseas Corporation Sdn. Bhd. and Marak Unggul Sdn. Bhd., the consortium company responsible for the management of Keretapi Tanah Melayu Berhad. In June 1999, he joined Ranhill Utilities Berhad as the Chief Executive Officer. He was the Managing Director and Chief Executive Officer of KUB Malaysia Berhad prior to his appointment as President/Chief Executive Officer of Tenaga Nasional Berhad.
1. Bank Bumi - we know what happened to Bank Bumi
2. Renong Group - urm.....
3. PLUS - any comment of PLUS ?
4. Marak Unggul ( a consultant to KTM) - can they make RM1 profit.
5. Ranhill - Join June 1999 for a short while.
6. KUB - any comment on this ?
My question is has he been stellar in any of his previous position ? Has the company he worked for has been known for peak performance..
Then my next question.. who interviewed this guy for TNB job ????
Yeah, I also wonder...
ReplyDeleteWho gave the nod to the creation of all the IPPs in the first place??
Let's hang that person!
"TNB chairman Tan Sri Amar Leo Moggie said the first quarter loss was also due to higher coal prices, which more than doubled to an average US$113.9 a tonne (RM406.6).However, coal prices are expected to soften to below US$75 (RM267.8) a tonne by the year-end.
ReplyDeleteOperationally we can still break even, but it's going to be very difficult due to the foreign exchange losses; we can expect the ringgit to make further losses against the yen and the US dollar due to higher interest payments for foreign currency loans" Che Khalib said.TNB's foreign exchange loss amounted to RM1.4 billion versus RM242.4 million a year earlier as the ringgit weakened against the yen and the greenback.
Discerning commenters would have noticed the following facts from the above:
1. Coal prices were $40.00 more during the quarter. But then, TNB had a coal venture going in Indonesia, the outcome of which is evident all over here :. http://rockybru.com.my/2006/08/rm350-million-man.html
b. http://rockybru.com.my/2006/09/tenaga-okays-bail-out.html
c. http://rockybru.com.my/2006/10/tnb-board-springs-u-turn-surprise.html
d. http://rockybru.com.my/2007/05/tenaga-exits-indon-mine.html
plus Arangbatu’s (1.16pm) contribution which I think refers to the same fiasco. So we have a super duper CEO for whom wasting 200million is chickenfeed. So why kick up a fuss over 940million….tak da kerja lainkah? . Bukankah begitu Pendekar Tanahair @fakatan scum?!
2. More pertinemtly, forex transaction losses due to a weakening ringgit rose by a whopping RM1.2billion. Now currency appreciation/depreciation is surely beyond TNB, right?. Most of those loans harks back to an era when we had the peg on until some soporific monkey decided to fiddle with the clothesline against better advise and the clothesline sagged like a drooping breast the likes of which are only found on a contour-less Wonderland within the precincts of Dreamland.....
3.The CEO himself is the astute appointment of silhouttes and prodigila..oops the prodigal son skulking within the shadows of fourth floors with oodles of time to wank. An empty mind is the devil's workshop, right?. This guy is not new to cock-ups as Bawal’s 1.51 comment implies.
Wither thou my grieving KPI? Delivereth in a blaze of hoopla thou art now nothing more than a fart of hypocrisy, a plaything for the knaves and jesters that troll this land...
For thou art surely doometh to a life of wandering and searching. No hearth to warm thine loneliness. No thoughts to peruse thy output. No conscience to act upon thy report.. Oh! how it cleaves my heart that thou have been so wrongeth? That thy truth hath so been shadeth by the hands of lies, That thy secrets has been strangleth by the ropes of expedience. But tear not my sweet KPI, for thy wraith will flit undying in thine sojourn. Perchance when a new king reigneth over the land, thy will raise like a spectre from heaven to speak the truth clasped within thy bosom, to bleat the facts unchained within thy mind........
So anything new in this latest revelation. Yup, just another confirmation of how this nation has been wanked dry for the past 5 summers and monsoons by the chief macaque and his bedroom...oops kitchen cabinet of junior monkeys at the controls. Any surprises there? no wonder the Chief Turban Lollipop waxed eloquent albeit somnambulistic ally (i guess) that its better that someone stays on ,the echoes of which are already reverberating through bloggerdom with this blogmaster being skewered for his gumption for not backing that inane show of support,here:http://harismibrahim.wordpress.com/2009/01/20/watch-the-spin-doctors-come-out-to-save-najibs-sorry-ass-by-trying-to-hang-the-kt-loss-round-pak-lahs-neck/
but then, you wouldn’t be surprised would you when this shitbrained wakil is a master equivocator and he repeats his stunts for our pleasure with these two gems:
1. I am defending the right of free speech and honest constructive criticism....oh yeah?
ha!Ha!ha! tell that to that ifrit/genie flitting in the wankedup mush you call a brain. You know, that ifrit by the name of "revert" who haunts you still. I have finally got the details of what happened? (Baltha)shar101…. you interested?
2.That is why the AG is involved.
This is an antiquated piece of law that should have been taken off our statute books a long time ago.
Ha!ha!ha!: when a dear potbellied, cuckolded paper commando is involved, all laws become antiquated, right wakil?
So there you have it 2 classic snapshots of Malaysiana, the living nightmarish legacies of a nincompoop whose poop is teeming with worms of cockamamie corporate wallahs, arse-brained wakils, blithering turbans, lobotomised choirboys and other sundry charlatans!!!Whoever holds the shitpail next, sure has a lot of cleaning up to do.
Warrior 231
Rocky,
ReplyDeleteGive TNB a break. There are 3 main reasons for the loss for the last quarter.
1. Economic slowdown - this affects everyone, no matter how genius you are. Due to slowing economy, industry reduce electricty usage. Even my office now has policy to cut down electricity use. So demand has and will continue to fall. Lower demand, lower sales, means lower profits. TNB also cant increase tarriff as gomen sure wont allow. Otherwise the cries of BN Barang Naik will be heard again.
2. Forex losses. This is due to large foreign borrowings by TNB made in the 90s. They have been "recycling" these loans every few years. The loans are in dollars and yen, so when the Ringgit depreciate, you get losses.
3. As mentioned by many of people..IPP factor. They made tonnes of profits at TNB's expense.
So all combined, you will surely lose money. So Rocky, please get more educated about this issue.
If you want someone to blame..blame the Old Man. TNBs overexpansion and IPP deals were all done during his time.
(fur9): dun wori lah !? all these losses are in ringgits ! indonesians/koreans could easily lose trillions & zillions of own currency !
ReplyDeleteBawal, thanks for sharing TNB CEO curriculum vitae.
ReplyDeleteI feel like saying Che Khalib, You are fired!
Perhaps the CEo and his merry men's salary should be at a low basic level; the balance paid according to profits and losses. Profits. bonuses is ok. Losses .. cut salary. The you get your money's worth. No worry whether they are a assets or costs. So simple.
ReplyDeleteYOU CAN GIVE THE MALAY ANY PROJECT AND THEY WILL FAIL. THEY ARE A CURSED RACE. PERIOD. REMEMBER SULTAN MAHMUD. YOU WILL HEAR MORE FAILURES AND MORE FAILURES.
ReplyDeleteThe real problem with TNB is it has leaders who are not sincere. They are also without vision . Learn from California and Europe! It is obvious that the present management has failed to understand the business risks facing the utility business. If TNB is a WORLD class company, then depending on excuses put forward by the CEO shows their immaturity. It is also not surprising that the SVPs and VPs that are appointed are equally clueless on the way forward. I also found out today that the Board of Directors even make simple mistake like appointing someone with a series of disciplinary offence to head a subsidiary. Even one of the SVPs have a discipline record. If these are the sort of people that are appointed to lead the company, how can you expect God to be on your side?
ReplyDeleteConsumer
Dear Bro Rocky, I think the comment by Anonymous above that one of the races in Malaysia is a "cursed race" should be removed from your blog because it is unacceptably inflammatory.
ReplyDeleteI agree with Sivakumar that calling the Malays a "cursed race" is offensive and unacceptable.
ReplyDeleteI do agree that Malays are one of the weaker race but you can't pass this kind of nasty remarks on us.
You must understand that we only have a very short history, 500 years ago most Malays are still living an uncivilised society. We do not have any education system or a language which can be recorded. We have very limited words and most can only use less than 100 words in their whole life. The British gave us the Malays a super highway to civilisation and we include new words to our vocabulary such as "Konsep = concept", "Sistem = System", "Prinsip = Principle.
So can you imagine not long ago we do not understand and we do not have "System, Principle and Concept". So how can you expect us to do well and to learn everything in such a short time?
suggestion, sack khatib immediately. then appoint someone expert in currency policy or money exchange as the new CEO. Khatib only want higher salary!!!! Then sack TNB staff without paying their VSS!!!
ReplyDeletezamri, anti- khatib
Dear Mr Rocky
ReplyDeleteOver the last 3 months, if we add up all the losses incurred by glcs and its parent, we are not that far away from the nations that were crushed by the economy downturn. Couple more announcements, we would be at par with the rest. Frankly, we have not seen the worst of global economy yet. The second bubble is about to burst and if it takes place, everyone will be hit harder. The second bubble is no other than the credit card, the most unsecured loan. The current US exposure is at 1 thrillion dollars and big enough to send crashes to the global economy all at once.
My point is, while we have sometime left, the government should start to look for tougher character to steer the khazanah and glc. At times like this, we need more of Idris Jala and show guys like azman, che khalib, zamraini the door out especially azman. Winding and blaming everyhing else except for themselves are too costly to the nation. So to the guys, join the ranks of the world class Ceo and take up the responsiblity. Just leave. I believe there are many more Dato Idris out here and not necessarily from the oxcam.
ND
Another Monopoly losing business is Telekom Malaysia run by ts radzi PakLah's brother inlaw..
ReplyDeletewhat about the losses suffered by big US or european companies like the detroit big 3, microsoft, intel, citibank etc etc ,,,are they incompetence and stupid?? its the global recesssion goddammit ,,,u cant escape even how genius u are,,
ReplyDeleteHey Simple logic,
ReplyDeleteI think you have a problem to understand what is a Monopoly.
Do not blame IPP. They sell one Kwh. to TNB from 12 sen to 18sen depending wen IPP was set up. Please chech your bills what they charge you - 21sen to 34sen.per Kwh. So how can incurr loss one?
ReplyDeleteTidak Nampak
Keep employing faithful UMNO idiots...keep playing race and using it..as a pawn for UMNO's corrupted schemes...why be so surprise?
ReplyDeleteOverpaid...under work...over staffs....unproductive workers..no systems..no follow ups....you name every possible failing signs....Tenaga and few other monopolizing businesses like S.Times.....Malay Mail..all gone fut.
This actually show so clear..UMNO does not know how to manage a country professionally..after more than 50 years.
It is not the majority Malays/Muslims...than cannot manage. It is UMNO sickening munafiks ...corrupted politicians.
TNB is worst and worst from share price to staff morale. Not easy to recover when the whole company more concerned on company politics over business? Work become second priority. If continue for another year like this, then can say goodbye to TNB because they will be eaten by IPP. Get people like Idris Jala that are sincere if not Air Asia has eaten MAS long ago. Cannot imagine what will happen to the 20,000 staffs in TNB! May be become like Gaza! Sensible Government would take immediate action to replace the incompetent CEO before more damage and more BN losses in by-election. He also make damaging appointment of subsidiary head who is indisciplined and hope that it is kept secret and not to be announced in open gathering like appointment of other new VPs. If continue like this then TNB cannot be infront with share price RM12 before. Now cannot imagine RM2 in the next few months.
ReplyDeleteShareholder
dont agree with shareholder. Its the economy.When times are bad,everybody suffer.everybody.look around us.and across the border.around the world.do we like it?.No.What do you do?do no spend money,cut costs.When market recover later,what excuses we r going to say?
ReplyDeletemimi.
(fury9) : has the 'poket masuk' termasuk into the LOSSES !!??
ReplyDeleteyou are a monopoly but you can't set the electricity tariff as you please
ReplyDeleteyou are a monopoly but your gas is subsidized
you are a monopoly, but you have no choice in paying the iPP
you are a monopoly, but you have no voice is paying off your loans. the loans are for a greater good
you are a monopoly, you earns RM50,000 a month. but you are managing one of the nation's largest company. compare your salary and the responsibility you hold, is your salary justified?
you are a monopoly, but people expects your services to be free.
TNB user
In Malaysia loss of money is through corruption.The main perpetrator is the Malay organization UMNO, an elite based political party that is a cancer to Malaysians and especially the Malay population.
ReplyDeleteHi, I think I can do a better job than him. Anybody wanna propose me to be CEO. Give me 3 years and I can assure all of you that TNB will achiever a much greater success story than anytime in its history.
ReplyDeletesumtimes i wsh malaysians could thnk wisely bfrore saying thgs..we r proud to say kitorg anak malaysia bangsa melayu,tp kita juga bagga kutuk malayu sesama melayu..manakah hilangnya permuafakatan itu..manakah hilangnya ur pride..tidakkah malu nak tunjuk dis kind of attitude to the new generations?everyone tends to point fingers to others..tapi x pernah nk reflect diri sndr..ni la skp rakyat skrg mengutuk sesma sendiri..skp ini yang akan menghancurkan malaysia suatu hr nnt..
ReplyDeleteanak muda-
Moga aja naik 5x lipat, nanti yang 10% buat ane....
ReplyDelete