KUALA LUMPUR, Oct 22 – Only 13 percent of work (unaudited) on the RM9.4 billion Trans Sabah Gas Pipeline (TSGP) and Multi-Product Pipeline (MPP) projects has been done but 88 percent of payment has already been made for them, said DAP Secretary-General Lim Guan Eng here today.
Calling for an explanation, the Member Parliament for Bagan in a statement today said that DAP is shocked at the previous Perikatan Nasional government’s secret decision under former premier Tan Sri Muhyiddin Yassin to revive the Trans Sabah Gas Pipeline (TSGP) and Multi-Product Pipeline (MPP) projects.
These projects were terminated by the PH government on Sept 6, 2018.
Finance Minister Tengku Zafrul Abdul Aziz, in answering a recent parliamentary question from DAP Kota Kinabalu MP Chan Foong Hin, said the decision to revive the projects was made in a cabinet meeting on February 10 this year.
Suria Strategic Energy Resources Sdn Bhd (SSER), a wholly owned subsidiary of the Ministry of Finance incorporated, is the company mandated to undertake MPP and TSGP. MPP and TSGP with a total construction cost of RM9.4 billion, were awarded to China Petroleum Pipeline Bureau on Nov 1, 2016 by the Najib Tun Razak administration.
The contracts worth RM9.4 billion have not taken into account the cost related to land acquisition, two expert consultancy agreements and a maintenance agreement, which would comprise a total additional cost of RM1.7 billion.
“These two projects are one of the most preposterous financial scandals of the Najib administration in that SSER has paid RM8.3 billion, or 88% of the project’s construction value of RM9.4 billion, even though progressive work completion (that has not been audited) is only at 13%. The 662km TSGP would have stretched from the Kimanis Gas Terminal to Sandakan and Tawau. The 600km MPP, meanwhile, would have connected various petrochemical projects in Malacca and Port Dickson, Negeri Sembilan to Jitra, Kedah.
“The question remains why Muhyiddin Yassin did not take any action against the perpetrators of such an extraordinary and humongous financial wrongdoing in paying billions of ringgit for work not done… Even if the previous government had decided to revive and continue with the two projects, those who were involved in betraying the country’s financial interests must not be allowed to go unpunished.”
Guan Eng said Pakatan Harapan had decided that any savings generated from projects will be returned to the Ministry concerned or respective states where the project was implemented.
“This would mean that the billions of ringgits that could be saved from these two projects will be returned to the states involved in the form of much needed roads, water and infrastructure projects.”
He also called on Prime Minister Datuk Seri Ismail Sabri Yaakob to come clean with his role in the previous administration and set a new course to ensure that not only the financial interest of the country is protected but those involved in financial crimes be punished.