It seems the award to Masteel, basically a company involved in steel and not rail, by direct negotiation is already being questioned by the opposition...
BY JENNIFER GOMEZ
JULY 15, 2013
DAP national publicity secretary Tony Pua wants to know why the award of the RM1billion rail project for Iskandar Malaysia was not conducted through an open tender process.
Instead, he revealed that the project was awarded through direct negotiations to a company called Metropolitan Commuter Network, which is a joint venture outfit owned by Masteel Bhd (60 per cent) and KUB Bhd (40 per cent).
Pua said at the parliament lobby that Umno has an interest in KUB Bhd.
He wanted to know why the government made the award through direct negotiations. "Why not through an open tender for a project of this scale?"
Pua said Masteel's main business was not in the rail sector but in the manufacturing of steel.
The rail service will encompass 20 stations at Kulai, Gelang Patah, Nusajaya, Johor Baru and Masai, among others.
Pua said that in a recent interview with Edge Malaysia published on June 17, Masteel CEO Datuk Seri Tai Hean Leng said that MCN would invest RM300 million in the project and would receive a soft loan of RM700 million from the government. Tai added that MCN had been given a concession on the commuter service for 37 years. It is expected to break even after 12 years.
Pua questioned the need to privatise the project if the government is going to come up with 70 per cent of the construction cost through a soft loan.
He added that the government had to explain its rationale for continuing to award projects through direct negotiations to
companies lacking experience and financing.
"Pemandu had come up with the GTP in 2009 to increase the transparency and accountability in government procurements, in an effort to curb wastage and corruption. But until today the government is not keeping to its word," Pua said.
He said what was instead obvious was that Prime Minister Datuk Seri Najib Razak's promise of "reformasi" should BN retain power was just empty promises. He added that BN cronies continued to receive preference and riches. - July 15, 2013.