RM2 Bln Rasau Water Treatment Contract Given To Gamuda Must Be Reviewed – Otai Reformis

For illustration purpose only. The Langat 2 Water Treatment Plant and Distribution System (LRAL2) in Selangor. Picture courtesy of Pengurusan Aset Air Berhad (PAAB).
Otai Reformis Secretary Abdul Razak Ismail.

PETALING JAYA, July 20 – The RM2 billion contract awarded to Gamuda Bhd on July 3rd this year for the development of the Rasau River Water Treatment Plant must be reviewed, as it was made in a haste and involves a huge sum from the Selangor state, says Otai Reformis.

The manner in which the contract was awarded was not transparent as there were no open tender involved, said Otai Reformis Secretary Abdul Razak Ismail in a statement issued here today.

He said other factors in the provision of the contract that warranted a review included the fact that Air Selangor was a fully owned subsidiary of the Selangor State Government and hence the awarding of such a huge contract must get the mandate and approval of the State Legislative Council.

“There is also a conflict of interest involved here as the Selangor Government in August 2018 paid RM2.55 billion to take over the SPLASH water treatment plant in Bestari Jaya, which is also owned by Gamuda. The price paid at that time was also seen as too high by some parties for a secondhand plant.

“Besides that, the prevailing uncertain economy with prices rising for essential goods, the Selangor Government is seen to be ‘spending big” almost like a ‘year-end sale’ that could finish its annual budget. It seems like the State Government is bent on clearing up the state’s funds before the impending general election,” he claimed.

The building of a water treatment plant cannot be called a specific project as there are many other local companies capable of building one, and hence an open tender should be conducted to ensure a more reasonable price structure, he said.

Razak also opined that there was sufficient supply of water in the Klang area for many more years if Air Selangor does not regularly close down its water treatment plants, citing water pollution. There is no need to rush with the Rasau Water Treatment Plant, especially when there has been no proper announcement to the people of Selangor, he added.

He also raised concerns that the water treatment plant and another major project – the repair of Stadium Shah Alam at a staggering RM787 million – would deplete the state’s funds before the 15th General Election.

He also called on Datuk Seri Anwar Ibrahim as the leader of PKR to look into the matter, alleging that there were “elements of non-transparency and breach corporate governance code” in the awarding of these major projects by the Selangor State Government.

— WE