PUTRAJAYA, Sept 19 — The RM450 million project mentioned in a letter circulating online is already in progress and the document was just a recommendation to approve cheaper implementation by the award winner, Tun Dr Mahathir Mohamad explained today.

The prime minister said the letter was not an order to award the contract directly and was instead a recommendation for approval in the event the company could lower the costs of the project.

“You can see from the letter that this was a continuation of a project that has been given to this party,” he told a press conference here.

“What I said was if this company is willing to reduce the cost and if this is a continuation of the previous project I think we should (allow it).

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“It is not a direct [negotiation]. It is only because they are already doing (the work).”

An Umno leader released the letter and accused the Pakatan Harapan government of being corrupt by awarding the project directly.

The letter dated July 26, 2019 was allegedly faxed to the Prime Minister’s Department’s Senior Deputy Chief Secretary Datuk Hasnol Zam Zam Ahmad.

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It referred to a “design and build” project for a “Bangunan Gunasama Persekutuan” in Tunjong near Kota Baru, Kelantan.

The letter, made public by Umno Supreme Council member Datuk Razlan Rafii on September 15, said that it referred to a letter sent by the prime minister dated July 9, 2019.

But shortly after a second letter was leaked and circulated, purportedly from PDM Builders Sdn Bhd (PDM) and dated November 1, 2018. It was reported to have contained the company’s appeal to Mahathir for the project to proceed as works had already begun.

The same letter further stated that PDM Builders won the rights to the project through a selective tender process — meaning that bidders were invited - and referred to a finance ministry letter of approval dated April 20, 2018.