
There seems to be a never-ending campaign against the Penang state government. Half-truths and outright lies are being spoken and facts are being distorted almost daily against the project comprising an undersea tunnel and three main roads begun by the Penang state government in 2013.
The latest entry on the bandwagon is MCA deputy president Wee Ka Siong who is adamant that the Penang state government has committed a colossal crime in the awarding of the project to a special purpose vehicle (SPV) – Consortium Zenith. He has raised a number of questions for which he wants immediate answers from the state government.
Contrary to what was reported in one of the dailies, I don’t think that Wee has raised difficult questions. I would think that the questions he posed lack a basic understanding of what transpired when the contract was awarded to the principal contractor or the SPV, Consortium Zenith in 2013.
Wee’s questions might appear “brilliant” to those who know little of the undersea tunnel project or the three main roads, but for those with some basic understanding, they are nothing but silly ones meant to score political gains.
The Beijing Urban Construction Group (BUCG) pulled out from the project but the China Railway Construction Corporation Limited (CRCC) still remains as the contractor, but not a shareholder, in the SPV company.
The CRCC has an agreement, as required for any major contractor undertaking a public project. CRCC general manager Sun Ming recently told the media that although the undersea tunnel project had not begun, the company still remained as a contractor.
I don’t think the Penang state secretary said the CRCC holds equity in the SPV. Zenith might be in partnership with three other companies in the SPV, but CRCC is definitely not involved.
Even if there are other companies holding equity in the SPV, such share equity does not negate the functions of Zenith as the main contractor in undertaking the major transport infrastructure project.
Wee’s argument that Zenith was a last minute entrant in competing for projects in Penang does not negate the process the company underwent in obtaining the project.
Zenith was awarded the project via an open tender process. None other than Penang state secretary Farizan Darus chaired the meeting. No politicians were involved in the tender exercise.
Wee questions the nature of the agreement with contractor CRCC as not being binding simply because the EIA has not been awarded for the undersea tunnel project.
I don’t understand Wee’s logic of questioning the validity of the agreement on the basis that no EIA has been awarded.
I don’t think that the Penang state government would appoint CRCC as the contractor for the project without an agreement. It is just not a MoU where the principal signatories can wiggle out if something goes wrong.
If the Penang state government has paid RM208 million through a land swap then the said land becomes private property. Whether the land is being developed by the City of Dreams or “City of Imagination” has no bearing on the Penang state government.
There is another question as to how Zenith made a pre-tax profit of RM60 million for the financial year that ended in August 2015.
He is posing this question on the assumption that Zenith has no other business other than the project awarded by the Penang state government.
The other private ventures of Zenith are not the concern of the Penang state government. Perhaps Wee is barking up the wrong tree. Perhaps he would want to pose the question to Zenith for some answers.
Wee might be a trained civil engineer having masters in traffic engineering and a PhD in transportation planning, however, these impressive credentials should not be misused to raise ridiculous and silly questions.
More importantly, these should not be used or abused to score political points given that the general election is around the corner.
To date, he has not used his expertise to raise questions about the wrongdoings of those who misappropriated the funds from 1MDB and the involvement of senior BN politicians in other major scandals.
Is Wee afraid that if he raised these questions he might offend his “masters” in Umno?
It is just that the MCA and leaders like Wee cannot stomach the fact that the DAP has weaned away considerable Chinese support in the past ten years or so. MCA leaders will use every opportunity to run down the Penang state government that is being helmed by the DAP.
When it comes to attacking the Penang state government, there is little attempt to differentiate fact from the fiction. In fact, as far as the MCA or other BN parties are concerned, there is much porosity between the two realms.
If the federal government had taken up the task of providing for major transportation infrastructure in Penang, there would not be any need for the Penang state government to embark on such projects.
Why would the Penang state government finance the transportation project through land swap if federal funds were forthcoming?
It is about time that BN parties such as the MCA start differentiating between the needs of politicians and needs of the people. Let us not repeat the “dog in the manger” story.
P Ramasamy is Penang deputy chief minister II.
The views expressed are those of the writer and do not necessarily reflect those of FMT.