The DAP wants the government to explain the "shockingly low returns on investment" declared by utility company Telekom Malaysia Bhd, which mark a 90 percent difference from its earlier estimate of almost RM75 million.

In a statement, DAP secretary-general Lim Guan Eng asked Energy, Water and Communications Minister Dr Lim Keng Yaik to explain Telekom's downward revision of an earlier estimated RM98.3 million profit.

"Is there something wrong with the government's privatisation policy that people get an estimated RM8 million from the RM2.5 billion profits expected to be earned by Telekom in 2004?" he asked

"The minister must explain the reason for the downward revision of over 90 percent for both Tenaga Nasional Bhd and Telekom."

He said the low return on investment was unacceptable, especially from national electricity and telecommunications companies with "tens of billions of ringgit in assets and combined profits of more than RM3.5 billion".

"I had earlier asked Dr Lim to explain why Tenaga's estimated 2004 return on investment to the government had dropped 90 percent, but he has refused to respond to date."

'Too low'

Quoting excerpts from the Finance Ministry's Report of Estimates of Government's Revenue 2005, Lim said the first figure was revised to RM90 million before ending at RM8 million.

"In contrast, (state-controlled oil giant) Petronas' original RM 5.6 billion return on investment to the government for this year was revised upwards by 68 percent to RM9.2 billion."

He argued that Telekom's RM8 million was too low when the government held the majority stake in the company which has the largest market capitalisation in the Kuala Lumpur Stock Exchange at RM35.62 billion as at Aug 30.

"Likewise, Tenaga's RM7.2 million contribution to the government for this year is too low considering that up to 80 percent is held by the government. It also has the third-largest market capitalisation at RM31.5 billion as at the same date."

The DAP leader noted that Telekom declared its highest event dividend of 20 sen per share last year when it's net profit rose 65 percent to RM1.39 billion.

"Profits for this year are expected to go up to RM2.5 billion, following Telekom's half-year net profit of RM1.5 billion. This is higher than the RM557.5 million declared for the corresponding period last year," he said, expressing bewilderment over the low government estimates.

Lim quoted a Malay Mail report on the recommendations by Asian investment banking arm of France's Credit Agricole SA, CLSA Ltd, encouraging investors to buy shares in Tenaga and Telekom.

"It (CLSA reportedly) said that these organisations have been 'so badly run that any change will go to the bottom line'."

In other words, he said, the situation in Tenaga and Telekom couldn't get any worse that it already is.