'We were extra cautious with Samy's ministry'
Arfa'eza A AzizPublished: Jun 29, 2006 7:59 PM | Updated: Jan 29, 2008 6:21 PM
There were 'strong suspicions' that Work Minister S Samy Vellu had personal interest in Ireka Construction Berhad (ICB) - the original contractor engaged to build the controversial Malaysian External Trade Development Corporation (Matrade) building, former finance minister and deputy premier Anwar Ibrahim claimed today.
There were 'strong suspicions' that Work Minister S Samy Vellu had personal interest in Ireka Construction Berhad (ICB) - the original contractor engaged to build the controversial Malaysian External Trade Development Corporation (Matrade) building, former finance minister and deputy premier Anwar Ibrahim claimed today.
This was among the reasons why the ministry then did not take up his proposal to contract ICB and had instead chose Perangsang International Sdn Bhd (PISB) to build the building, he explained.
"As a general rule, any recommendation from the Works Ministry - especially in situations where the minister had shown some interest - would raise a lot of suspicions from among the Treasury officers during my time. So the moment Samy showed any interest to any project, the Treasury would review the entire process," he said.
He said the decision to take the cautious step was taken against Samy's ministry - and not other ministries - following recommendations made by the Anti-Corruption Agency (ACA) then.
"Recommendations from the Work Ministry under Samy Vellu had always encounter problems with the Treasury at the time... I know because at that time I was also heading the government's management committee and the reports by the ACA is that you have to be extra cautious when you go through the recommendations."
Speaking at a press conference at his Damansara home today, Anwar was responding to Samy's claims that the entire fiasco - which saw the building being completed nine years behind schedule causing some RM159.8 million loss to the government - was because Finance Ministry failed to heed his advice on the choice of contractor.
Work on the Matrade building by PISB began in 1994 with completion scheduled in 1997, but the project suffered several delays and led to the appointment of a new contractor. The original cost of RM167 million shot up to RM287.5 million, with RM64.8 million being spent on repairs.
The government has since sought compensation from PISB for the loss it suffered but it will be a tough task as the company has since been liquidated.
As to why PISB was chosen, Anwar said the ministry had acted on the recommendations by its tender board which was headed by the then deputy minister, Abdul Ghani Othman - now the Johor Mentri Besar.
"Unlike the minister before and after me, I did not chair the tender board. It was the deputy finance minister. So the board gave the advice and we agreed based on the reports. That was the procedure."
He then urged the relevant authorities to conduct a full and thorough investigations on the matter.
"No one should be absolved from culpability if there was a crime committed whether it is Matrade building, the MRR2 (Middle Ring Road 2) or other construction projects. I support fully an investigation to determine whether there was criminal intent or corrupt practices in the process."
Priorities in Malaysia
Speaking on other issues, Anwar was also asked on the speculations of him running for the post of the United Nation secretary-general.
He said that although he had been approached by "credible and prominent quarters including the government" to consider contesting, he has not given it any serious thought.
"I have never discussed this with my family members and advisers. I also think that it is too early whether I would ever explore the possibility because right now my priorities in Malaysia to work and support the reform agenda to strengthen the institution of society particularly on economic development to propel economic growth in this country."
He also quipped he was currently busy rooting for his favourite football team Brazil to win the World Cup and writing his blog.
Asked on his chances in the next general election, Anwar reiterated his stand that the government may just deny him the chance by holding the elections much earlier than its due date in April 2008.
"I believe that the election will be held early for a different reason - (so that) I will not be able to contest. I welcome an early election because I will be free to go around the country campaigning for the opposition but beyond that I'm not too sure," he added.
This was among the reasons why the ministry then did not take up his proposal to contract ICB and had instead chose Perangsang International Sdn Bhd (PISB) to build the building, he explained.
"As a general rule, any recommendation from the Works Ministry - especially in situations where the minister had shown some interest - would raise a lot of suspicions from among the Treasury officers during my time. So the moment Samy showed any interest to any project, the Treasury would review the entire process," he said.
He said the decision to take the cautious step was taken against Samy's ministry - and not other ministries - following recommendations made by the Anti-Corruption Agency (ACA) then. "Recommendations from the Work Ministry under Samy Vellu had always encounter problems with the Treasury at the time... I know because at that time I was also heading the government's management committee and the reports by the ACA is that you have to be extra cautious when you go through the recommendations."
Speaking at a press conference at his Damansara home today, Anwar was responding to Samy's claims that the entire fiasco - which saw the building being completed nine years behind schedule causing some RM159.8 million loss to the government - was because Finance Ministry failed to heed his advice on the choice of contractor.
Work on the Matrade building by PISB began in 1994 with completion scheduled in 1997, but the project suffered several delays and led to the appointment of a new contractor. The original cost of RM167 million shot up to RM287.5 million, with RM64.8 million being spent on repairs.
The government has since sought compensation from PISB for the loss it suffered but it will be a tough task as the company has since been liquidated.
As to why PISB was chosen, Anwar said the ministry had acted on the recommendations by its tender board which was headed by the then deputy minister, Abdul Ghani Othman - now the Johor Mentri Besar.
"Unlike the minister before and after me, I did not chair the tender board. It was the deputy finance minister. So the board gave the advice and we agreed based on the reports. That was the procedure."
He then urged the relevant authorities to conduct a full and thorough investigations on the matter.
"No one should be absolved from culpability if there was a crime committed whether it is Matrade building, the MRR2 (Middle Ring Road 2) or other construction projects. I support fully an investigation to determine whether there was criminal intent or corrupt practices in the process."
Priorities in Malaysia
Speaking on other issues, Anwar was also asked on the speculations of him running for the post of the United Nation secretary-general.
He said that although he had been approached by "credible and prominent quarters including the government" to consider contesting, he has not given it any serious thought.
"I have never discussed this with my family members and advisers. I also think that it is too early whether I would ever explore the possibility because right now my priorities in Malaysia to work and support the reform agenda to strengthen the institution of society particularly on economic development to propel economic growth in this country." He also quipped he was currently busy rooting for his favourite football team Brazil to win the World Cup and writing his blog.
Asked on his chances in the next general election, Anwar reiterated his stand that the government may just deny him the chance by holding the elections much earlier than its due date in April 2008.
"I believe that the election will be held early for a different reason - (so that) I will not be able to contest. I welcome an early election because I will be free to go around the country campaigning for the opposition but beyond that I'm not too sure," he added.
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