by Lim Guan Eng

(Petaling Jaya, Wednesday): The BN government can not run away from their responsibility that their ineptitude, abuse of power and inaction of “keeping both eyes closed” has resulted in loss of public funds until the cost of the Matrade building not only increased by 72% or RM 120.5 million but was delayed by a shocking 9 years. For Works Minister Datuk S. Samy Vellu to try to pass the blame to someone else is a violation of the principle of collective responsibility and so long as he is part of the government he is equally to blame.

Work on the Matrade building began in 1994 with completion scheduled in 1997, but the project suffered several delays and was only completed and delivered this year to the Ministry of International Trade and Industry. The original cost of RM167 million shot up to RM287.5 million, with RM64.8 million being spent on repairs.

Samy Vellu had said in Parliament that his ministry had recommended in June 1993 Ireka Construction Bhd for the project, but that the Finance Ministry had preferred PISB, which is a fully owned subsidiary of the Selangor State government. The Public Works Department had estimated a cost of RM175 million and 125 weeks to complete and Ireka Construction offered to complete the job in 138 weeks for RM158 million. No reason was given why PISB was preferred to Ireka despite the lack of a proven track record by PISB in handling such major projects.

This raises 7 questions:

1.   Why were the Finance Ministry that pushed for PISB despite its lack of proven track record and experience not punished for making this blunder whether caused by incompetence or abuse of power?

2.   Why were PISB or its directors not sued in 1999 for not doing their job competently?

3.   Why did the government grant the contract without insisting that PISB directors gave personal guarantees or that the Selangor State Government gave a government or corporate gurantee as is the norm to ensure that the directors would be liable in a personal capacity?

4.   Why were the terms of the contract so generous that the contractor could walk away without agreeing to do remedial work?

5.   How is PISB going to pay late delivery charges of RM 95 million when that it has been sold for RM 2 to another RM 2 company Tajuk Modal Sdn bhd on July 19, 2004 renamed as Tajuk Construction Sdn Bhd, and then wound up on January 18 this year?;

6.   Why is it that the government is not insisting the Selangor State Government pays up the RM 95 million of compensation required to make up for the failure of their subsidiary company?; and

7.   Why were there no action taken against PISB, Selangor State government officials or any other Ministry officials or politicians involved in this scandal to defraud the Federal government of RM 160 million?

Samy said that the Federal Government is seeking RM 160 million in compensation inclusive or repairs and late delivery charges of RM 95 million from PISB. Unless the government takes taking stern action against Ministry officials and the Selangor State government, there is a higher chance of Malaysia winning for the World Cup than to get PISB to pay RM 160 million compensation for the repairs and the 12 year old delay in the Matrade building.

(28/06/2006)