Loke: Cabinet memorandum on Klang Valley Double Tracking project must be made public

Anthony Loke speaks during a press conference at Parliament in Kuala Lumpur August 18, 2020. ― Picture by Miera Zulyana
Anthony Loke speaks during a press conference at Parliament in Kuala Lumpur August 18, 2020. ― Picture by Miera Zulyana

KUALA LUMPUR, Sept 18 — Former transport minister Anthony Loke today urged the Youth wing (Armada) of Parti Pribumi Bersatu Malaysia (Bersatu) to ask Tan Sri Muhyiddin Yassin to make public all the Cabinet memorandum regarding the Klang Valley Double Tracking Phase Two (KVDT2) project. 

In a statement today, Loke said this must be done so that all the facts and background of the project, as well as comments from the Ministry of Finance, Ministry of Economic Affairs and the Attorney General, can be evaluated by the public.

He was commenting on remarks by Bersatu Youth information chief Mohd Ashraf Mustaqim Badrul Munir that Keretapi Tanah Melayu Bhd (KTMB) had advised former finance minister Lim Guan Eng against directly negotiating the RM4.475 billion KVDT2 tender with Dhaya Maju Infrastructure (Asia) Sdn Bhd-Lembaga Tabung Angkatan Tentera JV (DMIA-LTAT JV).

“Perhaps Armada does not understand the way decisions are made in the Cabinet. Cabinet decisions need to be made collectively after discussions and debates in Cabinet meetings.

“In the case of KVDT2, the consideration paper was presented by me as the minister of transport at that time. The Ministry of Transport and the Ministry of Finance proposed that the project be re-tendered.

“However, the majority of Cabinet members were of the opinion that the project should be awarded back to DMIA-LTAT JV due to several factors such as the 15 per cent agreed cost reduction, risk of legal action by the contractor against the government due to cancellation of the contract signed by the previous government so that the project can be continued without delay,” he said. 

Yesterday, Lim was questioned as to why direct negotiation was held for the KVDT2 project with the same company despite concerns raised by rail experts.

Ashraf said former KTMB chief executive officer Mohd Rani Hashim had sent a letter to Lim on February 21, 2019, where Mohd Rani listed his concerns about the work performance and delivery of DMIA, which was undertaking the ongoing KVDT1.

The Armada leader claimed that despite red flags raised in the letter, Lim directly negotiated with the said company and hired it again for Phase 2 on July 5, 2019.

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 tender was the biggest among the 101 directly-negotiated tenders given to companies by the Finance Ministry during the Pakatan Harapan’s tenure of 22 months, as revealed in Parliament recently.

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

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