Purchase of 38 EMU KTMB trains to Continue Despite ‘alleged’ Irregularities

ARCHIVES 2010

By admin-s On Oct 14, 2010

Despite the report from the PAC, opposition and critiques from both divides of the August House about the procurement by parliamentarians and the PAC, the Ministry in the written response to Kuala Selangor’s MP has conveniently argued that the purchase has to be continued because MOT has awarded the Letter of Award, LOA 26 May 2010.

By Dr. Dzul

I had a written reply to my oral question on whether the Ministry of Transport will proceed with the purchase of the 38 EMU 6- coach units from China’s South Locomotive which owns Zhuzhou Electric Locomotive Co Ltd of China on Tuesday, 12the October 2010.

The PAC had earlier concluded in their meeting on the 27th July that they were satisfied that there are enough reasons that warrant MACC to investigate the claim on my part of ‘irregularities’ that may result in the government paying an extra amount and the rakyat shortchanged, to the tune of RM500 million for the above said procurement.

Earlier to the PAC’s decision ie on the 23 July, 2010, very ironically and clearly in a huge rush, the Malaysian Government through the Ministry of Transport saw it fit to enter into an agreement with China’s South Locomotive which owns ZhuZhou Electric Locomotive Co Ltd of China, to supply interurban.

That’s truly pathetic as it shouldn’t be made the excuse.

We are reminded about the cancellation of the purchase of purchase of eight diesel multiple units (DMU) from Spain for KTM Berhad’s (KTMB) million commuter service network despite LOA and agreement already signed. The former Transport Minister was noted to have welcomed the Public Accounts Committee (PAC) to carry out a thorough probe into cancellation of the purchase.

We are also reminded of the cancellation made by the former Prime Minister Tun Abdullah Badawi on both the Ipoh-Padang Besar and Seremban-JB Electric Double-Tracking Project that was endorsed and awarded by his predecessor Tun Mahathir.

Numerous other examples could be cited that will make a mockery of the lame excuse given by the Miniter of Transport to proceed on with procurement of the 38 EMU units from ZhuZhou.

It has also come to my knowledge that despite all the rush in securing the EMU to overcome the dismal state of our public transport, KTMB has actually not ironed out with the supplier on the entire scope of work in the agreement namely the automatic train protection (ATP) system.

I was also informed that ZhuZhou is now asking for extra charges for that and worse still wanting to extend delivery period (24 mths) as in the agreement. So why the rush in the first place! I have also earlier emphatically registered and contested that the price of the 38 EMU doesn’t include Maintenance, Repair and Overhaul (MRO) package.