THE Penang government today refuted news reports that the administration had allowed the special purpose vehicle company undertaking the undersea tunnel to pre-sell state land rights worth RM3 billion.
Chief Minister Lim Guan Eng said it was also false that the state government had paid for uncompleted work pertaining to the tunnel.
Lim was commenting on the article “Datuk held over RM6bil project” published in The Star yesterday.
The story stated: “It is believed that the MACC is looking into why the state government allowed the Penang tunnel SPV company to pre-sell state land rights worth RM3 billion despite a four-year delay in the construction of roads.”
The story also stated: “Investigators are also believed to be looking into the RM305 million feasibility and detailed design studies that have yet to be completed, even though a payment of RM220 million was made to the SPV.”
“Prove it that we approved the pre-selling of land rights. Where did they (the newspaper) get the RM3 billion figure?
Lim added that when the project was awarded to Consortium Zenith Construction Sdn Bhd (formerly known as Consortium Zenith BUCG) in an open tender in 2013, the decision was made by the tender committee chaired by the state secretary.
“Before that, the evaluation on the submissions by interested parties was done by the state finance officer. There was no chief minister or state excos,” he said.
On Tuesday, the Malaysian Anti-Corruption Commission (MACC) raided several state government offices, a construction firm’s office, a property development firm and another company for investigation into the project.
Two company directors from the construction firm and property development company are remanded until next Monday to assist investigations.
Lim said the state’s contract was only with the construction firm that was awarded the project via open tender in 2013, not the property developer.
“The two directors’ dealings with each other has nothing to do with the state.
Lim said the tunnel was part of a larger RM6.3 billion transport infrastructure project, which also included three highways – the 10.53km Tanjung Bungah-Teluk Bahang paired road in the northern coast; the 5.7km Tun Dr Lim Chong Eu Expressway-Air Itam bypass; and the 4km Tun Dr Lim Chong Eu Expressway-Persiaran Gurney bypass.
He said the more urgent focus was on the highways, not the tunnel for the time being as it was only scheduled to be completed in 2027.
He said the only payment the state had made so far was RM208 million for the completed EIA (environmental impact assessments) for the three highways.
“Zenith claimed RM302 million for the job. The claims were assessed by HSSI, which certified the payment at RM208 million,” he said.
He said the RM208 million was paid by land swap involving two plots of land valued at RM1,300 per sq ft above market price, as according to the contract between the state and Zenith.
Lim clarified that it was HSSI (HSS integrated Sdn Bhd), a specialist engineering consultant that oversaw the project, not KMPG which he had told the media yesterday.
He said HSSI was appointed via an open tender in 2014 to assess Zenith’s designs and claims.
Lim said he regretted that the BN media had published “lies to run down and smear the reputation of the state government to benefit BN” in the run-up to the 14th general election.
He said the newspaper had no credibility, integrity or respect for the truth.
“We feel this is an evil scheme, a political witch-hunt to fix up the Penang government. We let the people decide.
“We have instructed government officers to give full cooperation to MACC.
Lim also said the state hoped that MACC would not allow itself to be used as a political weapon by those in BN, and also avoid the impression that they were only targeting the Penang government and not focusing on other “much larger scandals”. – January 11, 2018.
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Comments
The former is done with open tenders with elaborate checks built in with the appointment of independent consultants (also with open tenders) to ensure transparency and public accountability at every stage of the implementation.
While the latter project (the country’s largest, at contract price almost 10 times that of former) was awarded without tender at lightning speed, and without any prior publicity, not to mention public consultation. Worse, the contract was awarded at a price double that estimated by a consultant appointed earlier without any explanation.
However, our graft buster MACC, instead of pouncing on the ECRL handlers and decision makers, have raided all the relevant Penang state authorities and contractors involving in the Penang project and even detained top executives of the latter, upon a complaint lodged by a political opponent of the Penang state government.
Why struck on the Penang government at this sensitive time on eve of impending election when MACC has been probing this project for the past two years?
Why has there been no investigation on the ECRL contract?
Is MACC an independent graft buster serving the people, or is it a political tool serving the parochial interests of the federal ruling coalition?
Posted 6 years ago by Kim quek · Reply