Another transport ministry-linked financial fiasco
Christine ChanPublished: Nov 2, 2009 8:39 AM | Updated: Nov 2, 2009 9:54 AM
Klang parliamentarian Charles Santiago urged the Public Accounts Committee (PAC) to haul up certain individuals and account for their failure to complete the Rawang-Ipoh double tracking and electrification project.
Klang parliamentarian Charles Santiago urged the Public Accounts Committee (PAC) to haul up certain individuals and account for their failure to complete the Rawang-Ipoh double tracking and electrification project.
He said the PAC should summon Chief Judge Zaki Tun Azmi, former transport minister Chan Kong Choy, as well as DRB-Hicom and its subcontractors.
Zaki was the chairman and the biggest shareholder in Emrail Sdn Bhd, one of the contractors involved in the project estimated at RM5.77 billion.
He said the 2009 Auditor General's report mentioned Emrail Sdn Bhd as the most inefficient of the four subcontractors.
It had completed only 56.9 percent of the 179km double tracking and electrification project when the deadline for its completion expired on Dec 10, 2003.
The delay escalated the cost of the project to RM1.43 billion more than its original cost.
Auditor-General Ambrin Buang said due to contractual agreement between the government and DRB-Hicom, the maximum liability that could be claimed from the contractor was only RM257.99 million.
Bring 'em to book
Therefore, the government would have to absorb part of the RM1.14 billion loss brought about by delays in implementation and not keeping to the standards imposed on the infrastructural development.
"I urge the PAC at its meeting next week to endorse theAuditor General's suggestion that the Transport Ministry fine DRB-Hicom Bhd RM80.88 million (RM164,727 a day) for its failure to complete the Rawang-Ipoh electrified double tracking project on time," he said.
Both the PKFZ and this double tracking project, he said have cost the nation approximately RM14 billion or every Malaysian RM520.
He added that before PAC starts its investigations, the public need to be informed about the parties involved in the project, allocations made to the contractors, names of the politicians involved, the terms on which the contracts were awarded and reasons for the delay.
"Without a doubt, the double tracking project joins the ranks of PKFZ as another mega financial scandal prompted by greed, cronyism, sophisticated potpourri of business and politics and devastating mismanagement," said Santiago.
He said the PAC should summon Chief Judge Zaki Tun Azmi, former transport minister Chan Kong Choy, as well as DRB-Hicom and its subcontractors.Zaki was the chairman and the biggest shareholder in Emrail Sdn Bhd, one of the contractors involved in the project estimated at RM5.77 billion.
He said the 2009 Auditor General's report mentioned Emrail Sdn Bhd as the most inefficient of the four subcontractors.
It had completed only 56.9 percent of the 179km double tracking and electrification project when the deadline for its completion expired on Dec 10, 2003.
The delay escalated the cost of the project to RM1.43 billion more than its original cost.
Auditor-General Ambrin Buang said due to contractual agreement between the government and DRB-Hicom, the maximum liability that could be claimed from the contractor was only RM257.99 million.
Bring 'em to book
Therefore, the government would have to absorb part of the RM1.14 billion loss brought about by delays in implementation and not keeping to the standards imposed on the infrastructural development.
"I urge the PAC at its meeting next week to endorse theAuditor General's suggestion that the Transport Ministry fine DRB-Hicom Bhd RM80.88 million (RM164,727 a day) for its failure to complete the Rawang-Ipoh electrified double tracking project on time," he said.
Both the PKFZ and this double tracking project, he said have cost the nation approximately RM14 billion or every Malaysian RM520.
He added that before PAC starts its investigations, the public need to be informed about the parties involved in the project, allocations made to the contractors, names of the politicians involved, the terms on which the contracts were awarded and reasons for the delay.
"Without a doubt, the double tracking project joins the ranks of PKFZ as another mega financial scandal prompted by greed, cronyism, sophisticated potpourri of business and politics and devastating mismanagement," said Santiago.
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