MOF: Two-thirds of RM6.6b direct negotiation deals under Pakatan govt went to Klang Valley double-tracking

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz when winding-up debate for the Ministry of Finance at Dewan Rakyat in Kuala Lumpur, August 24, 2020. — Bernama pic
Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz when winding-up debate for the Ministry of Finance at Dewan Rakyat in Kuala Lumpur, August 24, 2020. — Bernama pic

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KUALA LUMPUR, Aug 26 — The Ministry of Finance has released the full list of 101 projects that were awarded through direct negotiations under the Pakatan Harapan (PH) administration, following calls to do so by the latter.

In the list, the Ministry of Transport (MOT) topped the list with four projects worth RM4.48 billion, making it roughly 67 per cent of two-thirds of the total.

The bulk of spending involved the RM4.47 billion Klang Valley Double Track Project awarded to Dhaya Maju LTAT Sdn Bhd.

In July last year, then transport minister Anthony Loke said the 110-kilometre Klang Valley Double Track (KVDT) Phase 2 project would be revived with a cost reduction of over RM700 million.

Dhaya Maju LTAT is a joint venture between private company Dhaya Maju Infrastructure (Asia) Sdn Bhd (DMIA) and the Armed Forces Fund Board (LTAT).

The Barisan Nasional administration had awarded DMIA the RM1.41 billion first phase of the KVDT project (KVDT1), and subsequently Dhaya Maju LTAT for KVDT2 in 2018 just before the general election.

Other deals under MOT included the hosting of Langkawi International Maritime Aerospeace Exhibition 2019 to EN Projects (M) Sdn Bhd worth RM2.33 million.

The rest were research package for aviation accidents to Plane Sciences Inc and printer ink and toner to Citi Tech.

The Malaysian Anti-Corruption Commission confirmed earlier this week that it will be looking into the direct negotiation contracts for possible corruption, embezzlement or abuse of power after several NGOs had filed complaints with it.

Uproar over the direct negotiation contracts began in the Dewan Rakyat when Tengku Zafrul affirmed during his wind-up of the Temporary Measures for Government Financing (Covid-19) 2020 that the PH administration had approved a certain number of government projects despite pushing for open tender contracts during its short-lived rule.

However, Tengku Zafrul also explained in Parliament that the approved projects had followed regulations that allowed for exemptions.

This caused PH MPs to demand Tengku Zafrul to release his list of the 101 projects to back his claim.

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