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ROS LBoard 1

‘Award SEB contract to lowest bidder’

 | June 15, 2012

The state opposition wants the Sarawak Energy to avoid kowtowing to Taib-linked companies.

KUCHING: Sarawak Energy Bhd (SEB) has been warned not to award a contract to build 500kV transmission lines from Samalaju in Bintulu to Tondong in Bau to a company linked to Chief Minister Taib Mahmud.

“The decision should be based on the lowest price,” said Sarawak DAP secretary Chong Chieng Jen.

Stating this in a letter to SEB today, Chong said the company should award the contract to the lowest bidder.

Five companies have submitted for the project, but only two companies, namely Shanghai Electric Group Co and Sino-Trenergy JV have been shortlisted.

Shanghai Electric submitted the lowest price of RM1,017 million.

SEB is to decide on Monday on who to award the contract to build the 505-km long transmission line.

Chong, who is Bandar Kuching MP and Kota Sentosa assemblyman, said SEB seemed hesitant to award the contract to Shanghai Electric.

It may decide to give it to Sino-Trenergy which has quoted RM1,151 million.

“Why it is so? According to SEB sources, the tender is likely to be awarded to Sino-Trenergy when the board of directors of SEB meets on June 18.

“According to my company search, Trenergy Infrastructure Company is owned by Mahmud Abu Bekir, son of Taib.

“Abu Bekir, who is a director of Trenergy Infrastructure, holds 25% share in the company,” said Chong.

Integrity at stake

Chong addressed the letter to SEB chairman, its chief executive officer and board of directors.

Copies of the letter were distributed to the press.

In his letter, Chong noted that Shanghai Electric’s bid was RM134 million lower than Sino-Trenegry’s price.

“Despite the fact that the tender price by Shanghai Electric is obviously lower by RM134 million, your company is still hesitant to award the project to Shanghai electric.

“It has been made known in the press recently that Sarawak Cable Bhd is bidding for the project though Trenergy (as confirmed by the CEO of Sarawak Cable Bhd in The Star on 12-6-2012) and that Sarawak Cable shall purchase the entire shareholdings of Trenergy.

“It is most interesting to note that Mahmud Abu Bekir, the son of the Sarawak Chief Minister, is the shareholder of Trenergy Infrastructure holding 1,350,000 shares and also a director of Sarawak Cable.

“In addition, your company is a shareholder of Sarawak Cable Bhd. That makes your company a related company of Sarawak Cable which is bidding for the project through Trenergy.

“I surely would hope that your company, in deciding to award the project of such large sum, will not be influenced by the political background or connection of the company submitting the tender.

“We are now dealing with international companies whereby integrity, fairness and transparency in the award of projects are of fundamental importance for the state and its reputation,” he wrote.


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