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Chan Kong Choy should give a full explanation of the RM4.6 bill Ipoh-Rawang double-tracking debacle, which is likely to end up costing over RM6 billion after a four-year delay   as it is not only his biggest failure as Transport Minister but also the biggest PMC failure to date


Media Conference Statement (3)
by Lim Kit Siang

(Parliament, Tuesday): The Ministry of  Transport has taken five days to confirm my statement last Tuesday that the government has terminated the contract of DRB-Hicom for the civil and infrastructure works for the RM4.6 billion Ipoh-Rawang electrified double-tracking project but refusing to confirm  whether UEM has been awarded the contract to complete the unfinished 12 per cent of the project at a cost of RM1.1 billion.

The Minister for Transport Datuk Chan Kong Choy should give a full explanation of the RM4.6 bill Ipoh-Rawang double-tracking debacle, which is likely to end up costing over RM6 billion after a four-year delay which is not only his biggest failure as Transport Minister but also the  the biggest PMC (Project Management Consultant) failure to date.

At the end of last year,  even Barisan Nasional MPs targeted the Works Minister, Datuk Seri S. Samy Vellu, calling for his resignation in Parliament, for the string of failed government infrastructure development projects involving highways, schools, hospitals, and when Samy Vellu  said the Public Works Department should not be blamed as these projects had been hijacked by Project Management Consultants (PMCs), his Cabinet colleague, Dr. Lim Keng Yaik briefly came to his aid demanding  for action to be taken against the PMCs for shortchanging the government.

But the PMC failures raised last year pale into insignificance when compared to the RM4.6 billion Ipoh-Rawang double tracking project, which will end up costing more than RM6 billion after a four-year delay.  The government handling of the Ipoh-Rawang double-tracking project is giving Malaysia a bad name.

Kong Choy should explain what action is being taken against Kinta-Samudra Kinta Kellas Consortium (KSKK), the PMC for the Ipoh-Rawang double tracking system, or will it be able to fully collect its commission which could be in the region of RM200 million despite the four-year delay and failures? 

Will KSKK have to bear any  responsibility for all the cost overruns and even controversial payments, like the RM20 million direct payment by the Transport Ministry to a sub-sub-contractor,Teknik Naga Sdn. Bhd. despite protests by the DRB-Hicom  at the time that payment had already been made?

(17/05/2005)      

                                                          


*  Lim Kit Siang, Parliamentary Opposition Leader, MP for Ipoh Timur & DAP Central Policy and Strategic Planning Commission Chairman