My 17th question to Zambry – why did he allow ATP to pay RM100.58M on behalf of SDGM on top of the RM324.39M payment for the Turnkey contract, Supplementary Contract No.1 and Supplementary Contract No. 2?

The special internal audit report on MAPS made a shocking revelation that although ATP has earlier paid SDGM a total RM324.39M for the construction of the theme park, ATP has also made RM100.58M of advance payments and payments to subcontractors on behalf of SDGM.

Zambry needs to explain this extraordinary situation as ATP has no financial obligation to pay SDGM subcontractors and numerous payment on behalf of SDGM. ATP only has a contractual obligation to pay SDGM and for the payment of RM324.39M, SDGM needs to deliver and complete the construction of MAPS which it ultimately failed to do so.

The internal audit report quoted the reason that due to cash flow issues faced by SDGM, ATP had paid numerous advances as well as payments to subcontractors and vendors on behalf of SDGM.

By allowing ATP to make RM100.58M on behalf payments of SDGM, Zambry is making ATP to double pay for the construction of MAPS – first, to SDGM and after that to SDGM’s subcontractor for the same work.

It is reasonable to assume that SDGM could make a comfortable profit on the RM324.39M received for the construction of MAPS. With the RM324.39M, SDGM should be able to easily pay off its subcontractors, rides, and utilities bills. However, that wasn’t the case and SDGM was struggling financially to pay its subcontractors and bills. What has happened?

Where has the RM324.39M paid to SDGM gone? Was it used wholly and exclusively in the construction of MAPS or tranches of money has been diverted elsewhere for other purposes?

I urge Zambry to immediately give a response as the RM100.58M payments on behalf of SDGM is potentially a misappropriation of funds. ATP has absolutely no business to make on behalf payments of SDGM to its subcontractors as SDGM should bear the responsibility to pay its subcontractors after receiving RM324.39M from ATP.

Chong Zhemin
Chairman of the Audit Committee Perak Corporation Berhad & SA FOR KERANJI
Media statement by Chong Zhemin in Ipoh on Tuesday, 9th April 2019