PENANG Barisan Nasional (BN) today demanded an explanation from the DAP state government on why the cost of conducting technical studies for the undersea tunnel and three highways project ballooned by RM69.3 million.

The original contract value for the project was US$22 million in October 2013, said Penang BN chief Teng Chang Yeow.

With the exchange rate then at RM3.15 to a dollar, the China state-owned China Railway Construction Corporation’s (CRCC) feasibility studies and detail design (FSDD) would cost about RM69.3 million today, he said.

“But the state’s Public Accounts Committee (PAC) in October 2015, and the state government’s reply in the state legislative assembly in May 2017 reported that the FSDD cost RM305 million.

“Of the RM305 million, the state government confirmed that the two plots of land measuring 3.7 acres and valued at RM208 million had been swapped as payment for the completion of the highways’ studies.

“The question now is the difference of RM236 million between RM69.3 million stated in the CRCC contract and the RM305 million reported by the state,” he told reporters at the Penang Gerakan headquarters today.

Teng, who is state Gerakan chairman, urged the Pakatan Harapan government to be transparent and accountable over the two figures.

“The swapping of land in whatever definition the state wants to use is still a payment made using assets belonging to the people,” he added.

The tunnel and highways project is the subject of an investigation by the Malaysian Anti-Corruption Commission (MACC).

The state government has since denied that there is corruption related to the project.

Chief Minister Lim Guan Eng said the MACC investigation is a witch-hunt aimed at undermining the state government in the run-up to the 14th general election this year. – January 24, 2018.