Sarawak to absorb 68 Pan Borneo Highway workers


Desmond Davidson

The cost of the Pan Borneo Highway has been slashed by RM2.8 billion but the cost savings have led to job cuts. – The Malaysian Insight file pic, February 21, 2020.

SARAWAK’S Infrastructure Ministry plans to absorb some of the retrenched workers of Lebuhraya Borneo Utara Sdn Bhd (LBU), the terminated project delivery partner of the Pan Borneo Highway.

Its minister, James Masing, said his ministry is currently preparing a cabinet paper to absorb 68 former employees, most of whom are Sarawakian engineers and support staff.

Masing, who is also the deputy chief minister, said the cost of taking in them would cost around RM52 million which can be recovered from the Works Ministry.

“This money we hope to recover from the cost of the Pan Borneo Highway at a later date.”

Masing said a “special percentage”, supervision cost to LBU administering the construction of the highway, is in the PDP contract.

“Since they have been terminated, we will get it at later date.”

LBU, axed by the federal government as part of its cost-saving measures, is reportedly laying off more than 500 employees.

Its role as the PDP ended yesterday.

Most of those retrenched are Sarawakians.

LBU received the termination letter from the federal Works Ministry on September 20 last year.

Masing said he also hoped Works Minister Baru Bian lives up to his promise and see that the Sarawak Public Works Department absorbs some of the laid-off LBU workers.

Baru, in presenting the appointment letter to the department as superintending officer for the highway in place of LBU, said his ministry and PWD “will try our very best to absorb them”.

Priority will be given to Sarawakians.

On the RM2.865 billion savings after terminating the PDP contract, Masing said “whatever is the balance” should be retained in Sarawak to build our other infrastructure.

Baru said the termination of the PDP reduced the cost of the 786.4km highway from RM21.857 billion to RM18.992 billion. – February 21, 2020.


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Comments


  • Reduced cost given back to Sarawak? This was the little extracted from the ballooned up tender figure? Sarawak has bad record of helping the Sarawakians. Most Sarawakians have no land. But a handful have hundred thousands of acres. Can u trust GPS?

    Posted 4 years ago by James Wong · Reply