Cost of Palace doubles: Pakatan flays gov’t for PKFZ-type overruns

ARCHIVES 2010

By admin-s On Jun 15, 2010

The government finally admitted to the Malaysian Parliament this morning that no open tenders were conducted for the contracts awarded to three main firms – Maya Maju Sdn Bhd, Ahmad Zaki Bhd and Kejuruteraan Kenari Sdn Bhd.

By Malaysia Chronicle

Pakatan Rakyat leaders have flayed the government for allowing massive cost over-runs in yet another mega project – this time the new Palace – for which the authorities had previously told the public would cost only RM400 million but the bill has now doubled to RM811 million.

Worse still, the government finally admitted to the Malaysian Parliament this morning that no open tenders were conducted for the contracts awarded to three main firms – Maya Maju Sdn Bhd, Ahmad Zaki Bhd and Kejuruteraan Kenari Sdn Bhd.

“This is completely unacceptable. How can the government expect the Malaysian taxpayers to keep forgiving them? Since the Mahathir administration, there has been one mega flop after another. The latest was the RM12.5 billion PKFZ debacle. How can Malaysians not suspect corruption and cronyism,” Beruas MP Ngeh Koo Ham told Malaysia Chronicle.

Najib must take the responsibility

According to PAS vice-president Salahuddin Ayub, Prime Minister Najib Razak, who is also the Finance Minister, must take full responsibility.

In recent weeks, the PM’s Department has asked Malaysians to tighten their belts as the government will have to soon cut subsidies or face the prospect of bankruptcy in 9 years’ time.

“It is no good saying the Istana deal was approved in 2006 under previous PM Abdullah Badawi. This is Najib’s watch, so it is for him to catch the culprits. How can he just let them go scot-free and then ask us, the taxpayers, to top up the shortfall. We are the ordinary rakyat while they are big corporate elite. Does it make sense to punish the poor for the vices of the rich,” Salahuddin told Malaysia Chronicle.

In response to questions posed by Taiping MP Nga Kor Ming, Deputy Works Minister Yong Khoon Seng admitted the cost of the Palace had doubled to RM811 million in just 4 years.