I have read many articles in recent times attacking the IPPs that charge TNB excessive rates. Yes, there is no doubt that the IPPs are sucking the government dry but it would be worth reconsidering the calls by many that IPPs make a huge cut on their rates.

The IPPs are awarded to cronies of the government and they in turn floated the IPPs on Bursa Malaysia. Therefore, these cronies make a huge profit from selling shares of the IPPs to the public. It is exactly the same as the AP holders selling the permits to Chinese businessmen who cannot obtain them.

By suggesting that the IPPs make a cut in their rates now, all the shareholders of the IPPs will suffer including those who have just purchased the shares in very recent times. Is this fair to fellow investors who have invested and valued the IPPs based on the expected income derived from the generous rates?

Will international investors ever have confidence investing in our country if the government revises agreements just because they find it unsustainable? I am sure they will feel victimised because the best part of the pie has already taken and they have to incur losses as the government want to break agreements.

All the positive elements are already priced in when most of the investors purchased the shares. The major, and probably only, beneficiary from the excessive rates are those who obtained the IPP licenses in the first place.

I believe that calls for the IPPs to cut their rates are short sighted. Agreements are to be honoured no matter what, otherwise, there is no need for agreements. Singapore still gets their water supply from Malaysia at below the market price. Even if we were to cry foul to the UN, nobody will support us because the agreement is there to be honoured.

The only way to solve the problem is to allow peaceful negotiations among both parties. Proposing that the government 'force' IPPs to agree to lowered rates could turn out to be a disaster as that indicates that all agreements made by the government are subject to changes at any time.

Instead, I would suggest that the Malaysian government and judicial system go after those who mismanaged and plundered the country's resources. Sue them, take away their billions of wealth and put them behind bars. After all, they are the one who took the billions and stripped the country naked. Why should current shareholders of profitable entities be made to pay for their misdeeds?