Another RM1bil project through closed tender

ARCHIVES 2013

By admin-g On Jul 15, 2013

(FMT) – The company awarded the RM1bil project for a new railway system in Iskandar Malaysia, Johor, through closed tender is linked to Umno, said Petaling Jaya Utara MP Tony Pua.

Pua said the company, which has insufficient funds, was also given a RM700mil soft loan from the government.

He said despite Prime Minister Najib Tun Razak’s promise of transparency, his administration continued to award multi-billion ringgit government projects to undeserving Umno-linked firms.

The company awarded the project is Metropolitan Commuter Network (MCN), a subsidiary of Malaysian Steel Works Bhd (Masteel).

KUB Bhd, a company which Umno has interests in, controls 40% of MCN’s shares and the rest is owned by Masteel.

“We would like to question how the government chose Masteel for this railway project through direct negotiations.

“Why didn’t the government conduct an open tender for a project like this?” asked Pua, who is also DAP’s national publicity secretary.

Pua said the government had given Masteel the nod for the project during a meeting with the firm, chaired by Finance Minister II Ahmad Husni Hussain.

“Why the need to privatise the project if the government has to pay 70% of the construction cost through loans?” asked Pua.

Masteel CEO Tai Hean Leng had told The Edge Malaysia on June 17 that MCN would invest RM300mil in the project, on top of the RM700mil government soft loan.

“The company will be given a concession to operate the commuter system for 37 years, even though MCN will break even after 12 years,” said Pua.