KUALA LUMPUR: The Pakatan Rakyat-run Selangor government decided to sell its stake in an independent power producer (IPP) after it took control of the state in 2008.

Shah Alam MP Khalid Samad said it waited for the right buyer to come along.

“In this case it was the 1Malaysia Development Board (1MDB),” he told fz.com. “This doesn’t go against our principles as we are selling it to a public entity.”

1MDB is a strategic development company wholly owned by the federal government.

Khalid was responding to Umno Youth chief Khairy Jamaluddin’s statement on Tuesday that the PKR government was being hypocritical for highlighting IPP and toll issues while at the same time holding stakes in companies involved in these activities.

Khairy said Worldwide Holdings Bhd — a wholly-owned subsidiary of Perbadanan Kemajuan Negeri Selangor (PKNS), the state’s development arm — had a 25% stake in Genting Sanyen, an IPP.

He added that the Selangor government also had a 20% stake in the Kesas toll highway, which was inconsistent with its plans to abolish tolls.

The Rembau MP went on to say that the PR government had four years to dispose of such equities, but had not done so.

Yesterday, Khalid told a press conference at the Parliament lobby that Worldwide Holdings had already sold its stake in Genting Sanyen to 1MDB.

Genting Sanyen is the power arm of conglomerate Genting Group and is one of the country’s five IPPs.

This article first appeared in The Edge Financial Daily, on Oct 25, 2012.