PETALING JAYA: Barisan Nasional should not be blamed as it is DAP’s own
doing that “sabotaged” the Penang undersea tunnel project, said Gerakan
vice-president Datuk Dr Dominic Lau (pic).
He added it began when the DAP-led Penang government failed to provide
feasibility reports on the project, which were supposed to be completed
by April 2016.
“You missed the deadline and in October 2017, the special purpose
vehicle (SPV) said there is no more urgency to complete the reports.
“Based on the original timeline, the first phase of the project was
supposed to start construction in the first quarter of 2015 and
completed by this year.
“As of now, this first phase has not even started construction,” he said in a statement yesterday.
Despite the multiple delays in the reports and the construction starting
date, he said the Penang government did not appear to have penalised
the SPV.
He said when the project was awarded, a statement was issued stating
that shareholders of the SPV consortium are China Railway Construction
Corporation (CRCC), Beijing Urban Construction Group (BUCG), Zenith
Construction, Juteras Sdn Bhd and Sri Tinggi Sdn Bhd.
“But today, CRCC, BUCG and Sri Tinggi were no longer listed as
shareholders while Juteras Sdn Bhd is listed as winding up – leaving
only one (Zenith Construction) out of the four shareholders in the
agreement.
“Despite a material change of the financial and technical strength
promised during the award and what it is now, the Penang government
still does not appear to want to cancel the project or penalise the
SPV,” he said.
“Even five years after the contract was awarded, the SPV still only has
paid-up capital of RM26.5mil – way below the RM381mil minimum paid-up
capital required by the Penang government to deliver the project.
“Meanwhile, the SPV is on course to make billions in two property
projects valued at RM800mil and RM15bil respectively,” he said.
Meanwhile, Barisan Nasional Strategic Communications deputy director
Datuk Eric See-To said the agreement shown to the media by Penang Chief
Minister Lim Guan Eng was different from the one MCA deputy president
Datuk Seri Dr Wee Ka Siong said was not stamped.
The agreement shown by Lim in a press conference on Friday was between
the Penang state government with Consortium Zenith-BUCG; and not between
the state and CRCC.
Previously, the Penang state government had shown a copy of a letter of
support from the CRCC to prove that it is a party to the SPV awarded to
undertake the undersea tunnel project.
On Tuesday, Dr Wee’s statement noted that the Acknowledgement of
Commitment signed by the state government with CRCC was not a legally
binding document and was hence not stamped.
Cracks at Tanjung Bungah site began in June, Commissioner of Inquiry told
Expert panel: (From right) Yeo, Dr Gue and Prof Ramli arriving for the inquiry.
GEORGE TOWN: A temporary structure supporting a worksite slope in Tanjung Bungah developed cracks in mid-June, a Commissioner of Inquiry heard.
Soil Mechanic Sdn Bhd director Cheah Wing How, who was a sub-contractor of the project where a landslide killed 11 workers, said he was informed by a clerk to carry out remedial works as the granite wall had cracked.
Cheah said his team left after completing the granite works and soil-nailing works to enhance the stability of the temporary slope.
There was, however, no mention when they completed the works.
“When we returned, we found there were pile cap excavation works carried out near the slope.
“We believe there was soil movement that resulted in the cracks on the granite wall.
“We were carrying out remedial works and 11 days into the job, the landslide happened,” said Cheah, who has 20 years’ experience in the field.
Cheah was testifying on the first day of the public hearing into the landslide tragedy by the State Commission of Inquiry (SCI) at City Hall in Esplanade yesterday.
On Oct 21, last year, a landslide hit the affordable condominium project made up of two 49-storey towers with 980 units in total within the Permai Village township near the Tunku Abdul Rahman University College.
Among the 11 killed was site supervisor Yuan Kuok Wern, 27.
During the proceeding, the Penang Island City Council (MBPP) also presented eight drone videos that showed the slope and the surrounding area after the tragic incident.
SCI chairman Datuk Yeo Yong Poh said they planned to carry out a site visit tomorrow.
He also fixed the hearing to continue until Monday, followed by Feb 8 to Feb 11, March 24 to March 28 and April 18 to 25.
Other members of the commission are geotechnical expert Datuk Dr Gue See Sew and forensic geo-technical engineer from Universiti Teknologi Malaysia Prof Ramli Nazir.
The SCI was gazetted on Dec 21 last year to investigate the landslide after Yang di-Pertua Negri Tun Rahman Abbas gave his consent on Dec 6, 2017, for the appointment of the members of the commission and its terms of reference.
Meanwhile, Penang Citizens Awareness Chant Group (Chant) adviser Yan Lee said the entrance to the Teik Granite Quarry, which is located near the site where the landslide occurred, should be fenced up.
“Anyone can just walk into the site as the safety measure is not up to mark.
“We have voiced our concern to the Penang Island City Council, the Department of Environment as well as the Land and Mines Department,” he said yesterday.
In-depth query: A screen grab of the video where Dr Wee demanded explanations over the controversial Penang undersea tunnel.
Dr Wee, is trained as a civil engineer has a Master’s in traffic engineering and a PhD in transportation planning, believed to have worked as an
Environmental Impact Assessment and Traffic Impact Assessment
consultant for more than a decade. He is currently a minister in the
Prime Minister’s Department.
PETALING JAYA: Datuk Seri Dr Wee Ka Siong threw hard-hitting questions at the Penang government, demanding an explanation for the controversial undersea tunnel project.
The MCA deputy president raised major concerns in videos uploaded in two parts to MCA’s YouTube channel.
He zeroed in on the changes in the paid-up capital of a special purpose vehicle (SPV) and how two Chinese construction giants have “disappeared” from the SPV shareholding.
He also touched on the state government’s “agreement” with China Railway Construction Corporation Ltd (CRCC) and Penang’s insistence that no money was paid for the project.
In the videos, also uploaded on Dr Wee’s Facebook page, the Minister in the Prime Minister’s Department had a whiteboard to his left showing the changes in the shareholding while a television screen to his right displayed various documents.
Dr Wee wanted Penang Chief Minister Lim Guan Eng to clarify why the SPV Consortium Zenith Construction Sdn Bhd’s paid-up capital was reduced from RM4.6bil to RM70.5mil.
He said while Beijing Urban Construction Group (BUCG) was no longer a shareholder in the SPV, CRCC was never in the picture.
Dr Wee said back in March 4, 2013, the state government’s official newsletter Buletin Mutiara published an article quoting state secretary Datuk Seri Farizan Darus as saying the SPV had a paid-up capital of RM4.6bil, with Zenith Construction Sdn Bhd and CRCC jointly holding a 70% stake in it.
“We are in great shock because just days ago, CRCC went on record to deny ever being a shareholder and developer of the undersea tunnel SPV.
“Without the participation of CRCC and BUCG, the actual capital of the other component SPV back then is only RM8.2mil,” said Dr Wee, who is trained as a civil engineer and has a Master’s in traffic engineering and a PhD in transportation planning.
He, however, said the SPV had a total paid-up capital of RM70.5mil.
Dr Wee added that currently, Zenith Construction has a 47.12% equity in the SPV, Juteras Sdn Bhd (0.75%); Kenanga Nominees (Tempatan) Sdn Bhd (38.92%) and Vertice Bhd (formerly known as Voir Holdings Bhd, 13.21%).
He also revealed that Consortium Zenith BUCG Sdn Bhd was only registered on July 5, 2012, one day before the state government invited the consortium to submit a request for proposal (RFP).
“Chief Minister, you may argue that they formed the consortium just one day before to make it to the tender.
“But bear in mind your state secretary said the consortium was selected based on the financial and technical strength of CRCC and BUCG,” he said, adding that Zenith Construction was only less than three months old when it was then invited to participate in the pre-qualification for the tender.
Dr Wee also said that Acknowledgement of Commitment signed by the state government with CRCC was not a legally binding document.
“Where is the stamping of documents as required and which is the Court of Arbitration to arbitrate disputes?” he asked.
Dr Wee also questioned Lim’s stand that not a single sen was paid when state exco member Lim Hock Seng replied in the state assembly on March 19 last year that a land swap deal worth RM208mil was identified.
“The said land has been developed and sales of properties for the City of Dreams (which is built on the land) are ongoing. Aren’t you aware of that?
Dr Wee also urged Lim to give a detailed breakdown of how Consortium Zenith reaped a significant after-tax profit of RM60mil for the financial year that ended on Aug 31, 2015, when it had only conducted studies and had yet to start any construction work.- The Star
In custody: The consultant being taken out of the magistrate’s court in Putrajaya. — Bernama
PETALING JAYA: A senior engineering consultant in her 50s is the latest to be detained in connection with the probe over controversies surrounding the Penang undersea tunnel project.
The consultant is believed to have forged claim documents for the feasibility studies valued at RM305mil for the mega project of three main roads and an undersea tunnel to the state government, said a source familiar with the Malaysian Anti-Corruption Commission (MACC) investigation.
The woman is expected to be remanded at the Putrajaya magistrate’s court today.
She was arrested at MACC headquarters in Putrajaya at 6.10pm yesterday after her statement was recorded.
“The investigators are trying to determine if other individuals were involved in the preparation of the falsified documents,” the source added.
The engineering consultant is the third person to be arrested in MACC’s investigations into the Penang undersea tunnel project.
Two high-ranking Datuks of development and construction companies were earlier arrested on Jan 9 before being remanded for six days beginning Jan 10.
The remand was then extended for another five days from Jan 15.
They were released on MACC bail of RM200,000 each on Jan 19 by the Putrajaya magistrate’s court.
On Monday, MACC deputy chief commissioner (operation) Datuk Seri Azam Baki had said that more individuals would be hauled up over the project.
The RM6.3bil mega project includes building the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in north Butterworth, 10.53km North Coastal Paired Road from Tanjung Bungah to Teluk Bahang, 5.7km Air Itam-Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive-Tun Dr Lim Chong Eu Expressway bypass.
The MACC has since recorded statements from more than 70 people and visited more than 40 premises in the course of their investigation.
By Royce Tan The Star
State govt can only hold SPV liable, says Wee
PETALING JAYA: Although Penang Chief Minister Lim Guan Eng has reiterated that not a single sen was paid for the feasibility study of the undersea tunnel, the fact remained that it was paid in kind, said Datuk Seri Dr Wee Ka Siong.
Dr Wee, who is MCA deputy president, said the crux of the problem was that the state government had no contractual nexus with the contractor.
“The state government can only hold the special purpose vehicle (SPV) liable, not the contractor.
“Don’t confuse the people with the SPV and the contractor. SPV means you can hold it liable.
“If a contractor is subsequently awarded by the SPV, that’s between the contractor and the SPV.
“If the SPV fails to pay the contractor, the contractor has no obligations (to construct),” he said.
He added that he had conducted a comprehensive research and he knew what happened.
“I welcome this project, but it must be carried out in a proper manner. This is what I want.
“Don’t blame others. If at all you need to blame somebody, it is your SPV that you appointed.
“They keep on delaying the report, not us. We have no say in the report and we’ve not even seen it,” said Dr Wee.- The Star
