Dr M unaware of CCCC's alleged termination from ECRL project
Prime Minister Dr Mahathir Mohamad has said that he does not know whether the China Communications and Construction Company (CCCC) has been terminated as the contractor for the controversial East Coast Rail Link (ECRL) project.
When asked to clarify the matter, Mahathir said: "I don't know whether it has been terminated or not."...
Prime Minister Dr Mahathir Mohamad has said today that he does not know whether the China Communications and Construction Company (CCCC) has been terminated as the contractor for the controversial East Coast Rail Link (ECRL) project.
When asked to clarify the matter, Mahathir said: "I don't know whether it has been terminated or not."
Last Friday, The Edge Markets quoted a source as saying that the government had terminated CCCC's engineering, procurement, construction and commissioning contract for the RM81 billion ECRL project.
Singapore’s The Straits Times subsequently reported that the Malaysian government was seeking a new contractor for the project.
The Singaporean paper had reported that Putrajaya wanted the maximum cost of the ECRL to be capped at RM40 billion, and for more local materials to be used. It had also learned that CCCC was allegedly unable to meet those conditions.
Mahathir reiterated today that the termination of the contract could result in the government paying a hefty compensation to CCCC.
"One of the ways to tackle this matter is to terminate the contract but when it's done, (we) have to pay compensation worth billions (of ringgit)," he said.
He was speaking to reporters after officiating the launch of a B40 protection scheme called ‘MySalam’ at the Finance Ministry in Putrajaya.
Also present were Finance Minister Lim Guan Eng and Health Minister Dzulkefly Ahmad.
Earlier this month, Mahathir had said that the government was facing a dilemma with regard to ECRL, due in part to the high compensation that needed to be paid to the contractor if it terminated the project.
Asked if he would raise the matter for discussion in today’s cabinet meeting, Mahathir said, "We will discuss it."
Yesterday, Malaysiakini had reported that several cabinet ministers claimed that they were unaware of CCCC’s termination as the ECRL project contractor.
Lim, whose ministry is leading the negotiations with China on the ECRL project, did not respond to requests for comment.
Why do we have to pay the contractor. Take them to court and expose the fraud they were involved in the and contract becomes null and void. They hiked up the prices to fill the void in 1MDB.
Complicated.
Worst than Pak Lah who sleeps through all You lied to all