KUALA LUMPUR, July 15 — The Prime Minister’s Office (PMO) did not interfere in the government’s payments to contractor KCJ Engineering Sdn Bhd for work done on a RM62 million project under the government’s Bumiputera contractors’ programme Jana Wibawa, the High Court heard today.

Public Works Department (JKR) Negeri Sembilan director Datuk Wan Hasnan Wan Musa, 51, said this while testifying as the 17th prosecution witness in former prime minister Tan Sri Muhyiddin Yassin’s power abuse and money laundering trial.

Based on Wan Hasnan’s court testimony, KCJ won the RM62 million contract on July 30, 2021, to build a new road from Felda Bukit Jalor to Gemas, Negeri Sembilan, and the government paid more than RM24.3 million to KCJ from March 2022 to February 2023, including interim payments for progress made on the project and a RM10 million advance payment.

Previously, KCJ was shown in this trial to have given RM800,000 to Parti Pribumi Bersatu Malaysia through four cheques dated September 1, 2022, which were cashed on October 12, 2022.

When cross-examined by Muhyiddin’s lawyer Chetan Jethwani today, Wan Hasnan said there had been no interference from the PMO or anyone else in the government’s payments to KCJ during the March 2022 to February 2023 period.

“Don’t have, it’s only based on progress,” Wan Hasnan replied, also confirming that this was based on what he knew about the project.

As for the government’s RM10 million advance payment to KCJ, Wan Hasnan confirmed that contractors can apply for an advance payment capped at 25 per cent or a maximum of RM10 million for government projects under JKR’s supervision, and that it would be paid if JKR had the allocation to do so.

While this project was originally scheduled to be completed within 34 months, Wan Hasnan said JKR had granted an extension of time for the project until the end of this month.

Wan Hasnan also confirmed that no one had interfered with the granting of this extension for KCJ’s project, and that there were good reasons for it, such as additions to the scope of work.

Chetan: So there has been no special treatment for this contractor?

Wan Hasnan: None. Normal treatment.

Wan Hasnan also confirmed that there were no special terms or conditions imposed in KCJ’s contract for the project.

Wan Hasnan is JKR’s superintending officer, or the contract administrator for the Malaysian government, for KCJ’s project, which means he has the role of supervising and certifying the project’s progress, as well as certifying the value of work done to enable the interim payments.

Among other things, Wan Hasnan told deputy public prosecutor Wan Nur Iman Wan Ahmad Afzal today that the project’s progress is monitored in monthly meetings and that it is expected to be completed by the end of this month.

Wan Hasnan also told Chetan that all work on the project so far had been completed according to JKR’s requirements and that it is not a “sick project”.

Wan Hasnan also confirmed that the contract had not been terminated for reasons such as corruption or illegal activities.

Previously, former finance minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz, testifying as the 11th prosecution witness, said Muhyiddin had issued a November 13, 2020 letter proposing the appointment of 54 contractors for 54 projects under Jana Wibawa through direct negotiations or without going through open tenders.

In the list of 54 contractors Muhyiddin sent to the Finance Ministry, KCJ was proposed for the road project, with a proposed value of RM100 million.

KCJ initially failed the Finance Ministry's evaluation for the project, but eventually won the contract with a value of RM62 million after passing a second evaluation.

In this trial, Muhyiddin is facing seven charges, namely four counts of alleged power abuse to obtain RM225.3 million in bribes for his party, Parti Pribumi Bersatu Malaysia, from Nepturis Sdn Bhd, Azman Yusoff, Bukhary Equity Sdn Bhd and Mamfor Sdn Bhd, and three counts of alleged money laundering involving money that Bersatu received from Bukhary Equity.

The trial before High Court judge Noor Ruwena Md Nurdin resumes tomorrow.