The Sarawak State Government’s announcement of RM1 billion to upgrade ICT infrastructure and to build another 5,000 telco towers is just another direct award of the mega-project to BN crony without tender.
The development of ICT infrastructure can be carried out without the rent-seeking and profiteering elements of SACOFA Sdn Bhd. Yet the State Government chose to allow SACOFA to profiteer on this RM1 billion allocation. This will result in higher costs and less effective results
At the moment, there is only ONE company in Sarawak having the full authority on the control, construction and licensing of ICT infrastructure, ie. SACOFA Sdn Bhd.
When SACOFA Sdn Bhd was set up in 2001, it was merely incorporated as a regulatory body, fully owned and controlled by the Sarawak State Government. Our State law was amended to give SACOFA the full power to regulate and control all ICT infrastructures in Sarawak.
Subsequently, SACOFA involved itself in the building of telco towers, and then the other ICT facilities, like the laying of fiber optic cable network.
The State Government even took up massive loan to build up the business of SACOFA.
In 2015, the State Government sold 50% stake in SACOFA to CMS Group at way below the fair price of the Company. The transaction was completed in 2016. Immediately thereafter in early 2017, the Government announced a RM1 billion allocation for the development of ICT infrastructure project in Sarawak.
The chronology of events surrounding Abang Jo’s announcement is just so coincident that it strongly suggests that all was planned to allow CMS Group get the biggest cut from the award of the RM1 billion projects:
- First, the government set up a company to regulate and control ICT infrastructure in Sarawak.
- Secondly, with that control, the company ventured into commercial activities on Government’s financial backing.
- Thirdly, when the company built up its business base, the Government sold the company cheap to CMS Group.
- Fourthly, the Government awarded a RM1 billion worth of contract for SACOFA to have full control over.
DAP fully supports the development of ICT infrastructure in Sarawak.
However, we object to the way the State BN Government goes about doing the said development because the Government is giving a private company the power to regulate and monopolistic rights over the development of ICT infrastructure.
With such regulatory and commercial rights in one company, the State Government, when allocates RM1 billion to develop ICT infrastructure, is effectively giving SACODA a blank cheque of RM1 billion to do as it likes or to build 5,000 telco towers as and where it decides.
This tantamount to a transfer of the executive power of an elected government to a commercial company. It is just like what happens before, ie. the State Government, via one single contract, appoint Titanium Management Sdn Bhd to build more than 300 bridges (as and where it decides) in Sarawak.
This entails higher costs to the Government and ultimately higher costs to the people of Sarawak.
Therefore, my question to Abang Jo: Is the State Government abandoning the little reforms initiated by the late Adenan and now reverting to the practices under Taib’s administration which reek of serious cronyism?