Despite blunder, incinerator contractor awarded extension worth RM3.56m, says DAP MP

KUALA LUMPUR, Nov 12 — The company rapped for mismanaging two out of four incinerator projects worth RM88.74 million has been awarded another three-year contract to manage one of the incinerators, disclosed an opposition lawmaker, who demanded an explanation.

Serdang DAP MP Ong Kian Ming said that the Urban Wellbeing, Housing and Local Government Ministry had chosen XCN Technology (XCNT) Sdn Bhd to manage the incinerator in Pangkor since the start of 2014.

This is despite the Public Accounts Committee’s (PAC) findings that the ministry had authorised the use of “unproven” technology without any due diligence on the claims made by the contractor appointed to build the facilities.

The Auditor-General also discovered that Putrajaya approved the use of unproven incinerator technology based on “autogenous burning” in all four projects, which was pushed for by the company’s minority shareholders Clean Earth Technology Sdn Bhd.

“By awarding the contract to operate and maintain the Pulau Pangkor incinerator, the ministry has exhibited a complete disregard for the blatant flouting of environmental standards by XCNT,” Ong told reporters at the Parliament lobby.

“It demonstrates that the ministry has no interest in the wellbeing of the residents on Pulau Pangkor,” he said.

In the report tabled at the Dewan Rakyat yesterday, the PAC recommended that the ministry take “appropriate action” against senior officials and experts engaged in approving the incinerator technology offered by XCNT, based on inconclusive evidence as to the efficacy of the three earlier incinerator projects built by the company.

These include Ministry Secretary-General Datuk Seri Arpah Abdul Razak, National Solid Waste Management Department (JPSPN) Director-General Datuk Dr Nadzri Yahya, National Solid Waste Management Technological Evaluation Committee members Prof Dr Rozainee Taib of Universiti Teknologi Malaysia (UTM) and Malaysian Industry-Government Group of High Technology (MiGHT) principal analyst (emerging technology) Dr Sivapalan Katsiravale, and the company itself.

Aside from the lack of due diligence, the bi-partisan PAC highlighted a long list of wrongs by the ministry which included allowing the incinerator deal to go through direct negotiations instead of calling for an open tender.