Press Statement

by Lim Guan Eng

(Petaling Jaya, Monday): The government should respond to the outrageous attempt by the contractors of the cancelled crooked half-bridge project to squeeze more compensation money by refusing to pay a single cent in compensation and letting the courts decide. When Gerbang Perdana Sdn Bhd, the main contractor, had asked for RM 99.8 million in compensation, DAP had opposed such payments in compensation as excessive and a blatant attempt to profit from the cancellation.

Following investigations by the Parliamentary Public Accounts Committee (PAC) chief and Johor Baru MP Datuk Shahrir Samad last montyh revealed the original cost of the bridge including all the road works and infrastructure was RM 1,113 million. This does not include the cost of the Customs, Immigration and Quarantine (CIQ) Complex that has already been built at cost of RM 1,266 million.              

However the government may have to pay more than the original cost of the bridge as the cancellation costs amount to RM 1,120 million as follows:-

·     RM280 million to build a permanent eight-tiered overhead road connecting the new Customs, Immigration and Quarantine complex in Johor Baru and the Causeway;

·     RM190 million to build other flyovers and connecting roads to the elevated highway;

·     RM170 million for preliminary work done on the project;

·     RM 99.8 million compensation to project contractor Gerbang Perdana Sdn Bhd; and

·     Land premiums for Johor state government at RM 380 million.

Datuk Shahrir had claimed that the cancellation costs are estimated at RM 740 million resulting in savings of RM 373 million as compared to the cost of the bridge of RM 1,113 million. However this is false as Datuk Shahrir has failed to include the cost of land premiums of RM 380 million. Including the land premium for the Johor state government, the cancellation costs amount to RM 1,120 million which is RM 7 million more than the cost of the bridge of RM 1,113 million. Logic suggests that the government should save hundreds of millions from canceling the bridge. It is incredibly foolish for the government to have to lose RM 7 million more at RM 1,120 million from canceling the bridge or higher than the cost of the bridge itself.

DAP can not understand why the contractor can still claim RM 99.8 million in compensation when it has already been paid RM 170 million for preliminary works done. Obviously the contractor would have profited from the RM 170 million for preliminary works done and to be paid RM 99.8 million compensation would be like allowing it realize its profits if the scenic half-bridge had been approved.

Further the same contractor had been given the project for both the eight land flyover and connecting roads for RM 470 million without an open tender. Why should the contractor still claim RM 99.8 million when it will further profit from the RM 470 million road works obtained without an open tender apart from the RM 170 million in preliminary works?

Now Gerbang Perdana, wants to claim not RM 99.8 million but a whoppong RM360 million in compensation for the lost project. Works Ministers Datuk Seri S. Samy Vellu said today that the government is not going to pay them what they claim and investigations have shown their claim to be baseless. But then he said that he has given Gerbang Perdana until July 11 to submit all the necessary documents to support their claims.

The public can not understand why Gerbang Perdana has until July 11 to furnish documents to prove their RM360 million claim if their claims are baseless. Is this merely a diversion device to distract attention and allow the government to approve a lesser RM100 mllion claim which by itself is excessive and unjustified?

The contractor’s initial compensation claim of RM99.736 million on 3 March 2006 covered the 712 days of work before the bridge project was stopped on the order of the Government — from Feb 5, 2004 to Jan 18 this year. If the new increased quantum of RM 360 million is an attempt to get easier approval of the RM 99.8 million compensation, the public should not fall for such a devious trick.

For this reason, Samy Vellu should refuse to pay a single cent of compensation to the contractor to show his commitment and sincerity in refusing to pay unfair compensation to the contractor. Let the courts decide on what is a reasonable amount of compensation!

Any failure to do so would not only question Samy’s commitment to saving public funds but more importantly question the integrity of Abdullah government in fighting corruption and abuse of power.  No one should be allowed to profit from the cancellation of the crooked half-bridge at public expense that has sparked of a political crisis between UMNO and between former Prime Minister Tun Dr Mahathir Mohamad and Datuk Seri Abdullah Badawi.