by DAP Penang chairman and Member of Parliament for Tanjung Chow Kon Yeow
on Tuesday, 2 July 2002
DAP opposes RM100 shell company Nadi Senandung leading the consortium to build the Penang Outer Ring Road, asks Government to revoke Letter of Intent
The Penang DAP today state its opposition to RM100 shell company Nadi Senandung taking over the leading role in the consortium, Peninsular Metro Works, awarded the RM1.02 billion PORR project as the company has neither the experience nor expertise to finish the project.
A dormant company, Cedar Heights Sdn. Bhd. that also does not have the necessary qualifications to handle such a mammoth project, in turn owns Nadi Senandung.
The Penang DAP had first questioned the credentials of the consortium; Peninsular Metro Works to implement the project as its paid-up capitals was only RM50, 000 and had no track records in building roads and undertaking reclamation works.
It is understood that the PORR project was awarded to Peninsular Metro Works because of the involvement of top Penang Umno leaders including the present Governor Tun Abdul Rahman Abbas and Senator Datuk Ahmad Ismail, the head of the Umno Bukit Bendera division.
We have exposed last Friday that Peninsular Metro Works had quietly undergone a share restructuring exercise and Nadi Senandung was brought in to take a majority 55 per cent stake in place of several shell companies controlled by Senator Datuk Ahmad Ismail and Goh Choon Aun.
However, the restructuring exercise had further exposed the inability of Peninsular Metro Works to justify its selection as the concessionaire to implement the controversial PORR project.
We are surprised as to why the Penang Chief Minister Tan Sri Dr Koh Tsu Koon and his deputy Dato Hilmi Yahaya have both defended Peninsular Metro Works although the ability of the company to undertake the project has never been proven.
We call on Dr Koh Tsu Koon to explain why the Letter of Intent issued to Peninsular Metro Works should not be revoked as it is clear that the concessionaire is not in a position to fulfill the government's requirement that it be financially sound and had the experience and expertise to implement the PORR project.