The source said the appointment of Rashdan Yusof as Energy Commission chief last month had sent shockwaves within the industry.
“While a change of guard is expected when there is a new government, Rashdan’s appointment was unexpected, to say the least,” said the source who spoke on condition of anonymity.
“He is the deputy group managing director of Gamuda Bhd, which is involved in the renewable energy business. Now he’s also the head of the regulator for energy. This is a blatant conflict of interest,” the source told FMT.
According to Gamuda’s website, Rashdan, who joined the company in 2018 and sits on its board, is also listed as an alternate director to group managing director Lin Yun Ling.
The company is a major player in the renewable energy space, and as recently as last December, announced it was spending RM2 billion to grow its renewable energy business.
So far it has acquired a 30% stake in ERS Energy Sdn Bhd, a company involved in solar energy.
“Other businesses in the renewable energy space are now asking how the government can allow a high-ranking executive in a company in the renewable energy business to also head the regulatory body for the industry,” said the source.
“In growing its renewable energy business, Gamuda will need to get approvals from the Energy Commission for all sorts of decisions and projects.”
The source said energy companies were “bemused” as to how Rashdan’s appointment was even considered as it would be unfair to Gamuda’s competitors.
“Even if Rashdan were to resign from his position in Gamuda, his appointment as Energy Commission chairman is already tainted.”
The source’s concern over the conflict of interests is not an isolated view. One international research house has raised this concern through a note sent to its clients.
“As a best practice, we believe Rashdan should relinquish any role within Gamuda. This could create a ‘key man’ risk, given he was responsible for driving the group’s renewable energy ventures,” it said in its note.
“However, we are confident that Gamuda has the talent and resources to minimise disruptions in the event of Rashdan’s departure. Alternatively, Gamuda could abstain from further involvement in the energy space to put to rest any potential concerns about said conflict of interest.”