Press Statement by Charles Santiago in Parliament on Monday, 2^nd November 2009:

Another Transport Ministry linked financial fiasco - Rawang-Ipoh double tracking project?

Whatever happened to accountability? We thought the Port Klang Free Trade Zone (PKFZ) scandal was the last of the financial fraud running into billions of ringgit. Now, the Auditor General's report has indicated that there was a major over run to the tune of more than RM 1.3 billion in the 179 km rail double tracking project between Rawang - Ipoh.

That is not the end of the story. Instead it’s a tale of grand sweep as it involves the Chief Judge of the country, Zaki Tun Azmi. He is the Chairman and biggest shareholder in Emrail Sdn Bhd, one of the contractors involved in the project. Zaki was appointed to the top judicial position on 21st October, 2008.

Zaki, also well known as an UMNO lawyer, was still speaking on behalf of Emrail on 21st April 2007. Subsequently he was appointed as the Federal Court judge on 5th Sept 2007 and made the Chief Judge on 21st Oct 2008.

He was quoted by Bernama saying, "We have completed the Rawang-Ipoh project to the satisfaction of the government. Bearing in mind that Emrail is the only Bumiputera-owned tracking company in Malaysia, we hope the government will consider us for tracking jobs for the Ipoh-Padang Besar as well as Seremban-Gemas projects,".

According to the Auditor General’s report for 2009, Emrail Sdn Bhd was the most inefficient of the four subcontractors as it completed only 56.9 percent of the project given the deadline of 10th Dec 2003.

The government might now have to absorb part of the RM 1.14 billion loss brought about by delays in implementation, not keeping to the standards imposed in the infrastructural development leading to the infrastructure not being fully optimised and the procurement of extra equipment and coaches.

We have the assurance from Chairman of the Parliament's Public Accounts Committee (PAC), Azmi Khalid, that the body would investigate the Transport Minister and contractors involved in this financial mess.

Before the PAC starts its investigations, the public need to be informed of the people who are involved in this project. Allocations made to the contractors, names of politicians involved, terms in which contracts were awarded and concrete reasons for the delay must be made public.

The Transport Ministry and government are in a limbo as the project has been warped with irregularities since its inception. The dual tracking system, which was supposed to be completed in 2002, was pushed back till 2007.

Without a doubt we could conclude that the double tracking project joins the ranks of PKFZ as another mega financial scandal prompted by greed, cronyism, sophisticated potpourri of business and politics and devastating mismanagement.

Both mega projects have already cost the nation approximately RM14 billion or every Malaysian, RM 520. This does not include losses due to direct negotiations of contracts estimated at RM 28 billion as revealed by a Star newspaper probe.

Stern action and corresponding punishment is desperately needed to regain the confidence of the public and investors.

Hoping that problems would disappear if they are ignored long enough would simply not work, anymore.

Therefore, I urge the PAC in its meeting next week to support Auditor General Tan Sri Ambrin Buang suggestion that the Transport Ministry fine DRB-Hicom Bhd RM80.88 million (RM164,727 a day) for its failure to complete the Rawang-Ipoh electrified double tracking project on time.

Furthermore, I urge the PAC Chairman to summon Zaki, former Transport Minister Chan Kong Choy, as well as DRB-Hicom and its subcontractors to give explanations to the Parliament. The Malaysian Anti-Corruption Commission (MACC) should focus its effort in investigating the scandalous federal leakage that rather than scheme with UMNO politicians to overthrow the Pakatan Rakyat-led Selangor government.

* Charles Santiago, Selangor DAP Vice Chairman & MP for Klang