PETALING JAYA: Barisan Nasional should not be blamed as it is DAP’s own
doing that “sabotaged” the Penang undersea tunnel project, said Gerakan
vice-president Datuk Dr Dominic Lau (pic).
He added it began when the DAP-led Penang government failed to provide
feasibility reports on the project, which were supposed to be completed
by April 2016.
“You missed the deadline and in October 2017, the special purpose
vehicle (SPV) said there is no more urgency to complete the reports.
“Based on the original timeline, the first phase of the project was
supposed to start construction in the first quarter of 2015 and
completed by this year.
“As of now, this first phase has not even started construction,” he said in a statement yesterday.
Despite the multiple delays in the reports and the construction starting
date, he said the Penang government did not appear to have penalised
the SPV.
He said when the project was awarded, a statement was issued stating
that shareholders of the SPV consortium are China Railway Construction
Corporation (CRCC), Beijing Urban Construction Group (BUCG), Zenith
Construction, Juteras Sdn Bhd and Sri Tinggi Sdn Bhd.
“But today, CRCC, BUCG and Sri Tinggi were no longer listed as
shareholders while Juteras Sdn Bhd is listed as winding up – leaving
only one (Zenith Construction) out of the four shareholders in the
agreement.
“Despite a material change of the financial and technical strength
promised during the award and what it is now, the Penang government
still does not appear to want to cancel the project or penalise the
SPV,” he said.
“Even five years after the contract was awarded, the SPV still only has
paid-up capital of RM26.5mil – way below the RM381mil minimum paid-up
capital required by the Penang government to deliver the project.
“Meanwhile, the SPV is on course to make billions in two property
projects valued at RM800mil and RM15bil respectively,” he said.
Meanwhile, Barisan Nasional Strategic Communications deputy director
Datuk Eric See-To said the agreement shown to the media by Penang Chief
Minister Lim Guan Eng was different from the one MCA deputy president
Datuk Seri Dr Wee Ka Siong said was not stamped.
The agreement shown by Lim in a press conference on Friday was between
the Penang state government with Consortium Zenith-BUCG; and not between
the state and CRCC.
Previously, the Penang state government had shown a copy of a letter of
support from the CRCC to prove that it is a party to the SPV awarded to
undertake the undersea tunnel project.
On Tuesday, Dr Wee’s statement noted that the Acknowledgement of
Commitment signed by the state government with CRCC was not a legally
binding document and was hence not stamped.
In-depth query: A screen grab of the video where Dr Wee demanded explanations over the controversial Penang undersea tunnel.
Dr Wee, is trained as a civil engineer has a Master’s in traffic engineering and a PhD in transportation planning, believed to have worked as an
Environmental Impact Assessment and Traffic Impact Assessment
consultant for more than a decade. He is currently a minister in the
Prime Minister’s Department.
PETALING JAYA: Datuk Seri Dr Wee Ka Siong threw hard-hitting questions at the Penang government, demanding an explanation for the controversial undersea tunnel project.
The MCA deputy president raised major concerns in videos uploaded in two parts to MCA’s YouTube channel.
He zeroed in on the changes in the paid-up capital of a special purpose vehicle (SPV) and how two Chinese construction giants have “disappeared” from the SPV shareholding.
He also touched on the state government’s “agreement” with China Railway Construction Corporation Ltd (CRCC) and Penang’s insistence that no money was paid for the project.
In the videos, also uploaded on Dr Wee’s Facebook page, the Minister in the Prime Minister’s Department had a whiteboard to his left showing the changes in the shareholding while a television screen to his right displayed various documents.
Dr Wee wanted Penang Chief Minister Lim Guan Eng to clarify why the SPV Consortium Zenith Construction Sdn Bhd’s paid-up capital was reduced from RM4.6bil to RM70.5mil.
He said while Beijing Urban Construction Group (BUCG) was no longer a shareholder in the SPV, CRCC was never in the picture.
Dr Wee said back in March 4, 2013, the state government’s official newsletter Buletin Mutiara published an article quoting state secretary Datuk Seri Farizan Darus as saying the SPV had a paid-up capital of RM4.6bil, with Zenith Construction Sdn Bhd and CRCC jointly holding a 70% stake in it.
“We are in great shock because just days ago, CRCC went on record to deny ever being a shareholder and developer of the undersea tunnel SPV.
“Without the participation of CRCC and BUCG, the actual capital of the other component SPV back then is only RM8.2mil,” said Dr Wee, who is trained as a civil engineer and has a Master’s in traffic engineering and a PhD in transportation planning.
He, however, said the SPV had a total paid-up capital of RM70.5mil.
Dr Wee added that currently, Zenith Construction has a 47.12% equity in the SPV, Juteras Sdn Bhd (0.75%); Kenanga Nominees (Tempatan) Sdn Bhd (38.92%) and Vertice Bhd (formerly known as Voir Holdings Bhd, 13.21%).
He also revealed that Consortium Zenith BUCG Sdn Bhd was only registered on July 5, 2012, one day before the state government invited the consortium to submit a request for proposal (RFP).
“Chief Minister, you may argue that they formed the consortium just one day before to make it to the tender.
“But bear in mind your state secretary said the consortium was selected based on the financial and technical strength of CRCC and BUCG,” he said, adding that Zenith Construction was only less than three months old when it was then invited to participate in the pre-qualification for the tender.
Dr Wee also said that Acknowledgement of Commitment signed by the state government with CRCC was not a legally binding document.
“Where is the stamping of documents as required and which is the Court of Arbitration to arbitrate disputes?” he asked.
Dr Wee also questioned Lim’s stand that not a single sen was paid when state exco member Lim Hock Seng replied in the state assembly on March 19 last year that a land swap deal worth RM208mil was identified.
“The said land has been developed and sales of properties for the City of Dreams (which is built on the land) are ongoing. Aren’t you aware of that?
Dr Wee also urged Lim to give a detailed breakdown of how Consortium Zenith reaped a significant after-tax profit of RM60mil for the financial year that ended on Aug 31, 2015, when it had only conducted studies and had yet to start any construction work.- The Star
In custody: The consultant being taken out of the magistrate’s court in Putrajaya. — Bernama
PETALING JAYA: A senior engineering consultant in her 50s is the latest to be detained in connection with the probe over controversies surrounding the Penang undersea tunnel project.
The consultant is believed to have forged claim documents for the feasibility studies valued at RM305mil for the mega project of three main roads and an undersea tunnel to the state government, said a source familiar with the Malaysian Anti-Corruption Commission (MACC) investigation.
The woman is expected to be remanded at the Putrajaya magistrate’s court today.
She was arrested at MACC headquarters in Putrajaya at 6.10pm yesterday after her statement was recorded.
“The investigators are trying to determine if other individuals were involved in the preparation of the falsified documents,” the source added.
The engineering consultant is the third person to be arrested in MACC’s investigations into the Penang undersea tunnel project.
Two high-ranking Datuks of development and construction companies were earlier arrested on Jan 9 before being remanded for six days beginning Jan 10.
The remand was then extended for another five days from Jan 15.
They were released on MACC bail of RM200,000 each on Jan 19 by the Putrajaya magistrate’s court.
On Monday, MACC deputy chief commissioner (operation) Datuk Seri Azam Baki had said that more individuals would be hauled up over the project.
The RM6.3bil mega project includes building the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in north Butterworth, 10.53km North Coastal Paired Road from Tanjung Bungah to Teluk Bahang, 5.7km Air Itam-Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive-Tun Dr Lim Chong Eu Expressway bypass.
The MACC has since recorded statements from more than 70 people and visited more than 40 premises in the course of their investigation.
By Royce Tan The Star
State govt can only hold SPV liable, says Wee
PETALING JAYA: Although Penang Chief Minister Lim Guan Eng has reiterated that not a single sen was paid for the feasibility study of the undersea tunnel, the fact remained that it was paid in kind, said Datuk Seri Dr Wee Ka Siong.
Dr Wee, who is MCA deputy president, said the crux of the problem was that the state government had no contractual nexus with the contractor.
“The state government can only hold the special purpose vehicle (SPV) liable, not the contractor.
“Don’t confuse the people with the SPV and the contractor. SPV means you can hold it liable.
“If a contractor is subsequently awarded by the SPV, that’s between the contractor and the SPV.
“If the SPV fails to pay the contractor, the contractor has no obligations (to construct),” he said.
He added that he had conducted a comprehensive research and he knew what happened.
“I welcome this project, but it must be carried out in a proper manner. This is what I want.
“Don’t blame others. If at all you need to blame somebody, it is your SPV that you appointed.
“They keep on delaying the report, not us. We have no say in the report and we’ve not even seen it,” said Dr Wee.- The Star
GEORGE TOWN: Penang has tabled a higher deficit state Budget of RM740.5million for the next fiscal year of 2018.
Chief Minister Lim Guan Eng when tabling the budget, stressed that it was an estimate and it can be reduced if the state records a higher revenue collection.
Among some of the initial highlights for the state was a free Rapid Penang bus service during peak rush hours in the mornings and evenings.
Allocations would also be given to aid the medical tourism and hi-tech manufacturing sectors.
Penang has tabled a projected budget deficit of RM748.5 million for next year, compared to a RM667 million deficit for this year as administration and living costs continue to escalate.
However, Chief Minister Lim Guan Eng stressed that the state has a unique distinction of tabling projected budget deficits every year yet recording actual surpluses.
Next year's operating expenditure is RM1.25 billion, while the forecast revenue collection is RM503.7 million.
The cost savings come principally through the open tender system and an efficient administration, Lim told the state legislative assembly today.
After some 10 years of facing various external economic challenges, Lim said the state's gross domestic product is projected to outstrip the national average growth of 5.2% for this year.
Penang is targeting a GDP growth of 6% this year with the main contribution coming from manufacturing and services, with farming also showing signs of promise through fish farming.
GDP per capita has increased from RM33,597 in 2010 to RM47,322 in 2016, a 30% increase. Penang's GDP per capita is the second highest in the country, behind only Kuala Lumpur.
From 2015 to the first half of 2017, Penang attracted a total of RM13.8 billion in approved Foreign Direct Investment (FDI).
Tourism has also grown with the number of passengers at the Penang International Airport (PIA) hitting 6.7 million passengers in 2016, exceeding the airport's capacity of 6.5 million passengers.
The success story in the last 10 years is reflected by annual budget surpluses since 2008, with accumulated budget surpluses over the eight year period between 2008 to 2015 reaching RM578 million.
Lim also announced a range of fresh initiatives, which pundits have described as a people-friendly fiscal plan designed to endear the state government to the voters with the next general election looming near.
> There is a "I Love Penang" card, which is a smartcard for all local residents that allows access to social amenities and benefits provided by the state. The public think tank Penang Institute will be the implementing agency for it, as they have been allocated a budget of RM4.5 million to produce and distribute the smartcards.
> A free public stage bus service was mooted during the daily peak hours in the mornings and evenings – it is aimed at reducing traffic congestion. The project is dependent on the cooperation of RapidPenang.
> Penang has allocated RM60 million to jumpstart a "Pinang Sihat" medical card programme for families whose combined household income is below RM5,000, where the state will subsidise treatment at private clinics.
A medical card will be issued to each recipient, who can only spend up to RM50 per visit to a panel of private clinics who are part of the Pinang Sihat scheme.
"This will help the recipients, who fall ill to see a doctor without worrying too much about expensive charges or travelling to government clinics that are far away from their homes," said Lim.
> The free mammogram examination scheme for women above 35 years shall continue. So far more than 10,000 women have benefited.
> The state will also be increasing the annual payouts for senior citizens and the disabled from RM100 to RM300 for next year.
> A maximum bonus payout of RM2,000 will be accorded to civil servants who have a good disciplinary record while those below par will only receive RM1,000.
> The state will also allocate RM10 million for hill slope protection efforts, as well as to conceive a study on climate change, and tackle illegal farming.
Later, there was a protest at Komtar, led by former Penang PAS Youth head Mohamed Hafiz Nordin, who urged the state government to rescind the alleged appointment of PKR secretary-general Datuk Saifuddin Nasution Ismail as the new Penang Islamic Religious Council president, replacing Permatang Pasir assemblyman Datuk Salleh Man.
Hafiz argued that Saifuddin was not a religious scholar, therefore he was not suitable for the post. Saifuddin's replied that holding protests is normal in a democracy.
Brought down: A view of the fallen backyard wall and awning of the house.
Penang MCA: Guan Eng must explain cause of incident in house near construction site
GEORGE TOWN: Penang MCA is seeking an explanation from Chief Minister Lim Guan Eng on the collapse of a perimeter wall and an awning of a house in Jalan Bagan Baru 1, Butterworth.
Its organising secretary Dr Tan Chuan Hong said the house owner believed the collapse could be due to nearby construction carried out by Penang Development Corpora-tion (PDC), of which Lim is the chairman.
The area is also under the Bagan parliamentary seat which Lim is the MP.
Dr Tan said the house owner had earlier complained to PDC after seeing cracks on the wall at his backyard about one year ago.
He said PDC was carrying out piling works then for its two affordable housing projects.
“Luckily, nobody was hurt in the incident but the authorities came forward only after the wall fell,” he said when contacted yesterday.
“That is against their ‘competency, accountability and transparency’ policy.”
Dr Tan urged the state to conduct a safety review on the projects.
When contacted, Sungai Puyu assemblyman Phee Boon Poh said the awning and wall collapsed due to soil movement during the construction of a drain at the projects.
He said that after being told of the incident, he went for a site inspection with Seberang Prai Municipal Council president Rozali Mohamud, representatives from PDC and the contractor.
“I told the house owner that the state would take full responsibility.He will be fully compensated and repairs will be done soon.”
He added that the council issued a stop-work order for the drain construction pending investigation.
“Our geo-technical expert will do a soil test while PDC and council safety officers will investigate the incident,” he said.
Dec 13, 2015 ... Dr Kam was delivering a talk titled, 'What is happening to our hills' at the Save The Hills of Penang public forum at Dewan Sri Pinang here ...
Dec 11, 2015 ... The spate of hill clearings has prompted the Penang Forum, a coalition of public interest NGOs, to hold a forum on Save the Hills of Penang ...
Dec 3, 2015 ... PENANG'S drainage system is unable to cope with heavy rain falling within a short ..... Penang Forum concerns over hill clearing and flood.
Dec 3, 2015 ... PENANG'S drainage system is unable to cope with heavy rain falling within a short ..... Penang Forum concerns over hill clearing and flood.
