The Edge and YTL alliance, how about credibility?

A friend who knows about my bad habit of not regularly checking my email today told me to have a look at it as he had forwarded me something.

i feel that the article that he send to me to be rather interesting, particularly in the light of the latest development where YTL had withdrawn from the IPP project in Pasir Gudang, possibly due to public pressure.

It's about the supposedly respectable business publication The Edge.

And the writer wrote it as if he/her is myself, which I find rather flattering.

My friend who forwarded me the article had suggested for me to publish it of which I agreed. I wish I know who wrote it but my friend said the person had wished for anonymity.

"This person is a big fan of yours," my friend said.

Okay, that made me rather embarrassed.

Well, it doesn't matter lah as the content was good.

Thanks to whoever you are.....

So, here it is,

Why like that one?

I promised way back in February that I would say more about those who bet on both sides. So, this piece is a bit longer than usual.

Now seems like the right time with the news filled with Francis Yeoh’s fiasco daring to lecture others on crony capitalism.

Without crony capitalism YTL could still be Syarikat Pembinaan Yeoh Teong Lay Sdn Bhd

After ‘crony capitalism’ storm, YTL boss now preaches morality, integrity in business

And of course as I pointed out before, The Edge, a newspaper I once upon a time thought was truly trying to deliver unbiased news, has again obviously taken sides.  

I detailed before how the paper had clearly pushed for a YTL victory in the open tender for the 3B power plant.

Maneuvering for big money on the political front

And they didn’t stop there. YTL lost the tender to 1MDB-Mitsui and the EC explained that YTL’s bid did not comply and was on the whole more expensive.

Then the lone voice of the Edge refused to take this lying down. They openly challenged the EC, defending YTL to the point of torturously arguing that all the other bidders also do not meet the EC’s technical requirements.

Why is it so important to dedicate endless pages to get across YTL’s case? I think we all know the answer.

But ok, let’s suspend disbelief and go with The Edge’s declared agenda to defend fairness, transparency and competitiveness. After all, they are always calling for competitive tenders, criticising direct negos of power companies and the advantage of government companies vs the private sector through articles like “why no open tender?

So how did the Edge react when YTL and SIPP got the contract for the 1000-1400MW 4a power plant via direct negotiations?

Of course they went on a stinging attack, right? “Blatant favouritism” perhaps? “Damaging return to the days of lopsided crony PPAs”, perhaps? “Secret negotiations shock energy sector”, perhaps?

I mean other papers and the TNB union were vocal in their criticism.

A step back in power reform

TNB has yet to decide on Johor project

TNB unions protest direct contract award

So The Edge as an “independent” paper must have surely gone crazy?

Well, not so much. If anything, they defended YTL with “Project 4A no sweetheart deal”.

There were virtually no criticism of the direct negotiation. In fact, this time, The Edge swallows wholesale the EC’s rationale. Not like before when vociferously challenging the EC was their regular feature .

Instead, the Edge takes the pain to explain to its reader that this is no sweetheart deal. That though this is a directly negotiated contract which in the past Egde would crusade against, this time, Edge has suddenly mellowed. Because, you know, margin will be razor thin margin, and the funding more expensive, the IRR in single digit, and really after all, this is all doneto expedite the plant up programme. The litany of excuses!

Really Edge? Where is the outrage???

In the wake of the Francis Yeoh’s ‘crony capitalism’ controversy, the paper published a glowing profile of YTL in “YTL beats 85% of Fortune 500 companies”.

The “family business” that has “flourished since Francis Yeoh took over the helm” with clear values of “stewardship” and being taught to  “…hate evil, corruption and other activities that do not benefit people’s lives. These values enable YTL to have a purpose; be a force for good, not personal greed.”

That one made me laugh!

But my favourite one is the article that not only defends the 4A award but then expresses surprise that the market did not react favourably to the announcement.

Market unimpressed by project 4a

“According to sources, the Project 4A deal, which involves a 1,000MW to 1,400MW combined cycle gas turbine power plant, is slightly different from the early power purchase agreements (PPAs) that are highly profitable, despite being awarded through direct negotiations as well.

...Nonetheless, it is surprising that the market wasn’t more receptive to the award, especially to YTL power as its PPA with TNB for YTL Power’s two power plants in Malaysia will expire iN September next year.”   

Did Edge really expect to do this and people won’t notice? Edge has always pride itself of having intelligent readership. All we can say about this whole episode is bull****.

We see your game. And we call you out. And next time you rail against unfairness and shout for integrity, we question your credibility.