The failure to defer the controversy-ridden Bakun dam project implies that Prime Minister Abdullah Ahmad Badawi does not have the final say in the cabinet, said an opposition leader.

Parti Keadilan Rakyat (Keadilan) vice-president Tian Chua said the premier's statement on Wednesday contradicted his earlier promise to only maintain projects that improve the quality of life.

"The decision on the Bakun dam project has puzzled the people about the premier's economic policy," he added in a statement yesterday.

The Keadilan leader claimed that Abdullah was being restricted by 'past influence', leaving him with no other choice than to proceed with the mammoth project.

"Abdullah is confronting pressure from internal factions, and this will make it impossible for him to achieve anything in the short term, including his pledge to fight corruption," he said.

Tian Chua claimed that this 'influence' was also reflected in the appointment of Najib Abdul Razak as deputy prime minister and the cabinet reshuffle announced on Wednesday.

"Despite it being a minor cabinet reshuffle, the arrangement of portfolios for Umno leaders, (reveals that) the past influence still exists," he added.

Double blow

After announcing Najib's appointment, Abdullah told reporters that the agreement to sell a majority stake in the Bakun project to tycoon Syed Mokhtar Albukhary had lapsed. However, he said the project will proceed.

The government initially planned to sell 60 percent of Sarawak Hidro, the operator of the 2,400 megawatt Bakun scheme in Sarawak, to GIIG Capital, which is controlled by the businessman.

The prime minister said the agreement signed on Aug 30 between the Finance Ministry, Sarawak Hidro and GIIG Capital lapsed because certain conditions under the pact were not met within the stipulated time frame.

Abdullah said the ministry would return a deposit of RM94.5 to GIIG immediately and added that the government was open to new proposals regarding Sarawak Hidro.

This is the second blow to Syed Mokhtar, who is reputedly close to former premier Dr Mahathir Mohamad, since Abdullah took over as prime minister last November.

Last month, the government shelved the RM14.5 billion rail project awarded to a consortium led by his flagship company Malaysia Mining Corp.