TWO companies linked to the Multi-Product Pipeline (MPP), Trans-Sabah Gas Pipeline (TSGP) and East Coast Rail Line (ECRL) projects have been raided by the Malaysian Anti-Corruption Commission.

Highly placed sources in the anti-graft agency confirmed that the raids took place this morning, but did not offer more details.

“Yes, we raided the companies. (The raids) took place this morning,” a source told The Malaysian Insight.

The raids come at a time when Council of Eminent Persons chairman Daim Zainuddin is in Beijing to meet the Chinese government about the projects.

The Finance Ministry had about two weeks ago, on July 3, issued a suspension notice for all contracts related to the MPP, TSGP, and ECRL projects.

Finance Minister Lim Guan Eng announced the suspensions on July 5, saying they were “solely directed towards the related contractors relating to the provisions mentioned in the agreements, and not at any particular country”.

The MPP and TSGP projects, with a total construction cost of RM9.4 billion, were awarded to China Petroleum Pipeline Bureau (CPPB) on November 1, 2016.

However, Lim had earlier revealed that only 13% of the work was done, and yet 85% of the project value was scheduled to be paid by March 1, 2018,

The MPP involved a 600km petroleum pipeline from Malacca and Port Dickson to Jitra, Kedah, while the TGSP was a  662km gas pipeline from Kimanis Gas Terminal to Sandakan and Tawau.

The ECRL, meanwhile had been awarded in 2016 to China Communications Construction Company Limited China (CCCC) as the main contractor, which signed an MoU with Malaysia Railway Link Sdn Bhd (MRL).

The original scope of the rail line from Gombak in Selangor to Wakaf Baru in Kelantan, worth RM46 billion, was further expanded by the previous government and reached RM80.92 billion including interest, land acquisition fees and other operational costs.

In 2017, two companies from China had signed a memorandum of understanding (MoU) with their Malaysian counterparts to carry out the second phase of the ECRL and gas and petroleum pipeline infrastructure project to Pengerang, Johor.

The Malaysian companies were MRL and Suria Strategic Energy Resources Sdn Bhd (SSER).

Former prime minister Najib Razak, former transport minister Liow Tiong Lai and former minister in the Prime Minister’s Department Abdul Rahman Dahlan had witnessed the signing of the MoUs. – July 18, 2018.