PM confirms Putrajaya seized RM1 billion from China company

Alfian Z.M. Tahir

Prime Minister Dr Mahathir Mohamad feeding fish at the venue of Bersatu's supreme council meeting today. He says the government is entitled to get money back for unfinished work on a cancelled project. – The Malaysian Insight pic by Seth Akmal, July 15, 2019.

PUTRAJAYA did indeed seized more than RM1 billion from China Petroleum Pipeline Engineering Ltd (CPP) after a RM9.41 billion pipeline project was scrapped, Prime Minister Dr Mahathir Mohamad said today.

He said the China-based company had completed only 13% of the project but taken 80% of the money from the government as payment.

“A total of 80% was paid to the company but only 13% of the project had been completed. The government is entitled to get the money back. Since the project has been cancelled, we want to get the money back on parts that were not implemented,” Dr Mahathir said today at a press conference after chairing Bersatu’s supreme council meeting.

Last Saturday, it was reported that Putrajaya had seized more than RM1 billion held by the state-owned company.

Earlier this month, the Pakatan Harapan government ordered banking giant HSBC to transfer funds held in CPP’s account in Malaysia to Suria Strategic Resources Sdn Bhd.

Suria Strategic Resources is wholly owned by the Finance Ministry.

Sources said the move was linked to a dispute involving two multi-billion-dollar energy pipeline projects suspended in July last year over links to the 1Malaysia Development Bhd (1MDB) scandal.

Apart from its HSBC accounts, other CPP bank accounts were also frozen by the Malaysian government.

CPP, which was awarded the contract as lead contractor in November 2016 by the previous government, confirmed that the funds had been transferred out.

Dr Mahathir added CPP had procured the project through a government contract.

On whether the cancellation of the pipeline project would affect Malaysia-China ties, Dr Mahathir said there was nothing for the Chinese government to be upset about.

“We are only taking money for parts that were not completed, not the parts where it was completed.

“I don’t see why China would feel unhappy.” – July 15, 2019.

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  • Mahathir is Mahathir. Good argument. Clear, logical and reasonable.

    Posted 5 years ago by James Wong · Reply

  • BossBodohKu care to comment why and how on earth was payment made up to 80% of tax payers money where the progress of the project delivered at 13%, which business rule was this applied??

    Posted 5 years ago by Teruna Kelana · Reply