PAC starts probe into rail double-tracking project

Written by Chua Sue-Ann, The Edge   

Parliament’s Public Accounts Committee (PAC) today began its investigations into the rail double-tracking project between Rawang and Ipoh and has summoned several companies involved for preliminary questioning, said PAC deputy chairman Dr Tan Seng Giaw.

Tan (Kepong – DAP) said the committee met with the Transport Ministry’s secretary-general Datuk Seri Zakaria Bahari and the representatives of the companies involved in the 179km rail project in a bid to discuss pertinent issues related to the probe.

According to Tan, the companies present included national rail operator Keretapi Tanah Melayu Bhd, the project’s original contractor DRB-Hicom Bhd and appointed main contractor UEM Construction Sdn Bhd.

“Of course the companies defended themselves but its very difficult to justify the project’s cost overrun and delays. Why should there be a cost overrun of over RM1 billion?” Tan said when met in parliament earlier today.

Tan added that PAC would likely recall the representatives of the companies back for questioning after the committee visited the locations at a date to be fixed.

The PAC had decided to probe the double-tracking project after the recently released National Audit Report for 2008 highlighted the project’s problems and poor management which resulted in delays and unnecessary costs.

The auditor-general’s report also suggested that the government may have to bear part of the RM1.14 billion loss incurred by the project.

The report also said that as of December 2008, some RM5.77 billion had been spent to implement the project. 

The figure was RM1.43 billion higher than the worth of the original contract, which stood at RM4.34 billion.