'RM15 bil project awarded without tender'
S PathmawathyPublished: Nov 23, 2009 4:20 PM | Updated: Nov 23, 2009 4:27 PM
The DAP has decried a move by premier Najib Abdul Razak to award a RM15 billion project to a private company without calling an open tender.
The DAP has decried a move by premier Najib Abdul Razak to award a RM15 billion project to a private company without calling an open tender.
It claimed that automotive conglomerate Naza TTDI Sdn Bhd has been selected to build a convention centre for the International Trade and Industry ministry (Miti).
Petaling Jaya Utara DAP parliamentarian Tony Pua (right) chided the government for awarding the contract through direct negotiations, thereby contradicting Najib’s promise of greater transparency.
In exchange, the company is being given 2.8 million square feet of prime land near Mont Kiara worth about RM628 million, Pua claimed at a press conference in the Parliament lobby today.
"We call on Najib to (call a) tender (for) the project, and select the best contractor or developer who can provide the highest level of service at the lowest possible price in the shortest possible time, and ensure the interest of the government is fully protected," he said.
The building-for-land deal is said to be among Najib's “second wave of privatisation” projects to reduce government expenditure.
Naza, under the late Nasimuddin Amin, had taken over TTDI Sdn Bhd in 2004 from Pengurusan Danaharta.
Nasimuddin was one of the four 'AP Kings' favoured in the issuance of Approved Permits from Miti to import foreign cars, and who made millions of ringgit in the process, according to Pua.
"It appears that his sons, who have taken over Naza, have continued the cosy relationship with Miti, to be awarded the Matrade Convention Centre (project) without any competitive tender," he said.
‘Najib reneged on pledge’
Pua also claimed that Naza TTDI is “not even experienced” in construction work.
"Why were they given the go-ahead? This (also) flies in the face of Najib’s promise when he was he was named finance minister in 2008, and re-affirmed after he became Prime Minister in 2009, that projects would be awarded through the open-tender system," he said.
Pua said he was aghast when he received a parliamentary reply from Deputy Finance Minister Awang Adek Hussin (right) that the ministry is not aware of the project, as it is under the purview of the Prime Minister's Department.
"We have also been informed through a reliable source that the next similar privatisation project will involve 6.5 million square feet of land at Jalan Cochrane for a MRCB joint-venture with an estimated gross development value of RM15 billion," he said.
If the government fails to call an open tender for both projects, Pua said he would demand that all related ministerial papers be declassified and tabled in Parliament.
This is to ensure that due diligence has been conducted, and that there will be no inflated cost to the government or inflated profit for the concessionaire.
It claimed that automotive conglomerate Naza TTDI Sdn Bhd has been selected to build a convention centre for the International Trade and Industry ministry (Miti).
Petaling Jaya Utara DAP parliamentarian Tony Pua (right) chided the government for awarding the contract through direct negotiations, thereby contradicting Najib’s promise of greater transparency.In exchange, the company is being given 2.8 million square feet of prime land near Mont Kiara worth about RM628 million, Pua claimed at a press conference in the Parliament lobby today.
"We call on Najib to (call a) tender (for) the project, and select the best contractor or developer who can provide the highest level of service at the lowest possible price in the shortest possible time, and ensure the interest of the government is fully protected," he said.
The building-for-land deal is said to be among Najib's “second wave of privatisation” projects to reduce government expenditure.
Naza, under the late Nasimuddin Amin, had taken over TTDI Sdn Bhd in 2004 from Pengurusan Danaharta.
Nasimuddin was one of the four 'AP Kings' favoured in the issuance of Approved Permits from Miti to import foreign cars, and who made millions of ringgit in the process, according to Pua."It appears that his sons, who have taken over Naza, have continued the cosy relationship with Miti, to be awarded the Matrade Convention Centre (project) without any competitive tender," he said.
‘Najib reneged on pledge’
Pua also claimed that Naza TTDI is “not even experienced” in construction work.
"Why were they given the go-ahead? This (also) flies in the face of Najib’s promise when he was he was named finance minister in 2008, and re-affirmed after he became Prime Minister in 2009, that projects would be awarded through the open-tender system," he said.Pua said he was aghast when he received a parliamentary reply from Deputy Finance Minister Awang Adek Hussin (right) that the ministry is not aware of the project, as it is under the purview of the Prime Minister's Department."We have also been informed through a reliable source that the next similar privatisation project will involve 6.5 million square feet of land at Jalan Cochrane for a MRCB joint-venture with an estimated gross development value of RM15 billion," he said.
If the government fails to call an open tender for both projects, Pua said he would demand that all related ministerial papers be declassified and tabled in Parliament.
This is to ensure that due diligence has been conducted, and that there will be no inflated cost to the government or inflated profit for the concessionaire.
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