THERE is no misappropriation in relation to the tunnel and three highways project’s RM305 million contract for feasibility studies and detailed designs, said the Penang government.

State traffic management exco Chow Kon Yeow said the amount was correct for the works done by more than 30 consultants involved in the contract.

He said Chinese firm China Railway Construction Corporation (CRCC) was only one of the many consultants involved in the tunnel engineering works.

“CRCC’s payment will be RM69.3 million, as stated in the contract. The rest of the RM305 million is paid to the other contractors.

“There is no misappropriation. We have never deviated from the contract we signed,” he told a press conference today.

Yesterday, Penang Barisan Nasional chairman Teng Chang Yeow told the state government to explain why it was to pay RM305 million for the project’s technical studies when the CRCC contract was only valued at US$22 million or RM69.3 million based on the exchange rate of RM3.15 to a dollar.

Chow said Teng had assumed CRCC was the sole consultant in the entire project.

He said for the three highways, there were 19 consultants working on the RM208.7 million feasibility studies and detailed designs (FSDD).

For the tunnel, there were 15 consultants responsible for the RM96.24 million FSDD, he said.

“Out of the total RM96.24 million, CRCC will only be paid RM69.3 million.

“The RM236 million difference (questioned by Teng) is a gross misrepresentation and wrong, conjured up intentionally by irresponsible parties to mislead the general public and the Penang people,” he said.

Chow said Teng had relied on online reports and the CRCC website, which only gave general information on the contract, but chose not to believe official state replies and information in the state Public Accounts Committee and state legislative assembly.

“He made his own conclusions. He only used the official statement to create a scandal of his own imagination.

“He purposely raised non-issues. Why did he do this? (Public works exco Lim) Hock Seng says it is to sabotage. I have to agree.

“We have to tackle traffic woes in Penang. When they were in government, they made promises of urban rail projects but never delivered them; but when we want to do it, they make issues.

“Now we have to waste time to deal with baseless remarks and wild accusations, which are aimed at damaging the state’s image and sabotaging state projects,” Chow said.

The tunnel and highways project is now under investigation by the Malaysian Anti-Corruption Commission (MACC). Its contractor Consortium Zenith Construction Sdn Bhd chairman has been remanded along with several others, including consultants and partners.

Earlier, Chief Minister Lim Guan Eng also slammed MCA deputy president Dr Wee Ka Siong for asking trivial questions over matters related to the project that he had already answered.

Lim said answers to the questions Wee had raised could be found in his previous Facebook postings.

Wee, who is Minister in the Prime Minister’s Department, had alleged that the acknowledgement of commitment signed by CRCC and the state was not legally binding.

“Whenever he asks if documents were signed or stamped, we have to show that the documents are signed and stamped. Please, we are a government. Of course the documents are stamped. Otherwise, how do we make payments?” Lim said.

“This is so ridiculous. He is making a fool of himself. I didn’t want to answer his questions, but the state exco says I should. We have better things to do than to take out documents to show they are signed and stamped.”

The state government had been answering questions about the project repeatedly since the latest MACC investigation started earlier this month. The chief minister had even used a white board to write out notes to explain the project in his press conferences. – January 25, 2018.