KUALA LUMPUR: Is business in Malaysia looking down the barrel of a gun? Judging by what an independent power producer (IPP) tried to pull with a Tenaga Nasional Bhd (TNB) subsidiary recently, it looks like it.

The incident occured during negotiations between TNB subsidiary Sabah Electricity Sdn Bhd (SESB) and the IPP on Thursday afternoon. The IPP is also said to be Sabah-based. Present were 14 people, including TNB officers, representatives from the IPP and the TNB subsidiary, as well as lawyers and an official from the Energy, Water and Communications Ministry. The discussion was to thrash out a deal for TNB to purchase power from the IPP, which has a 100MW capacity. The going was tough and one of the SESB officials told the IPP representatives not to twist their arms. "The leader of the IPP's team said 'arm-twisting is nothing', then took out his pistol and brandished it in front of them," said a source. The move left the negotiating team in shock, which only intensified when the man, a Datuk, took out his gun again and laid it on the table as the discussions went on. The incident was all the more alarming as it happened at TNB's National Load Dispatch Centre (NLDC) in Bangsar -- a top security facility designated "Key Point Level 1", for areas of national security importance. The NLDC is responsible for maintaining the flow of power to the entire country. Anyone carrying any weapon into the premises has to declare it at the entrance -- something which was not done by the IPP's team leader. TNB's top management is furious over the incident, and a police report was lodged yesterday. It is believed that Special Branch had also been informed. According to sources, TNB is also going to write to the Energy Commission on what transpired. The progress of the negotiations is unknown. When contacted, Brickfields deputy police chief Supt Azri Abd Rahman confirmed that a report had been lodged. However, he noted the report did not indicate any element of threat or intimidation. "We are still investigating and will ascertain the truth of the matter."