PKR strategy director Rafizi Ramli has demanded answers from the government about a RM100 million grant allegedly awarded through improper channels, to a private company involved in renewable energy using steam.

He said the party, through a whistleblower, had obtained documents purportedly showing that Science, Technology and Innovation Minister Ewon Ebin (left), with personal referral from Prime Minister Najib Abdul Razak, had approved government funds to a Pahang-based company in January.

Rafizi said that even though the ministry had handed out about RM1.1 billion in research and development (R&D) grants over last four years, these were rarely more than RM2 million each to any single company.

"To the R&D industry, this is scandalous. Even for a small grant, they have to go through so much scrutiny,” Rafizi told a press conference in Kuala Lumpur.

"When they found out about the big amount dispersed to a single non R&D related project, it explains why Malaysia struggles to achieve the right level of R&D development.”

He alleged that this was abuse of ministerial power and that he is waiting for either Najib (right) or Ewon to respond before revealing more details about the highly unusual and secretly sealed deal.

Producing a copy of a single-page letter of the grant ‘approved in principle and on conditions’ and purportedly signed by Ewon, Rafizi also rebuked the ministry’s denial of any such abuse.

Yesterday, deputy minister Abu Bakar Mohamad Diah was quoted by The Malay Mail Online as saying that the ministry does not directly handle the giving out of grants, but that this is done through an independent committee.

Rafizi said there has been no public disclosure about the award of the RM100 million grant, even though the amount was much larger than usual.

Boiler plant being built

The private company which received the grant has been in business for just over a decade, according to its website. This states that the company is taking aim at becoming a world class enterprise in specialty chemicals and renewable energy, and listed 22 companies as its base customers.

Malaysiakini contacted a spokesperson in Pahang who confirmed that the company is building a boiler plant in Terengganu and that it is nearly complete. The name of the company is being withheld pending a reply from its director.

Rafizi questioned why the government did not simply extend a soft loan.

"Steam as a product is nothing new. By right, for such a commercial project, the fundings should come from the bank, even if it is a project of national interest. Can other commercial companies in similar green technology industry also apply for similar grants?" he said.

Rafizi said he does not know if any money has been handed out since, but reiterated that he will disclose more details later this week.

"For now, let the public scrutinise whether or not steam deserves a RM100 million plant," he said.