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PAC wants MACC to investigate purchase of KTMB trains.

August 4, 2010

I’ve received a copy letter from the Chairman of the Public Account Committee sent to the Chief Commissioner of the MACC that they have convened a meeting on the Tuesday, 27 July 2010 to discuss on the issue of the purchase of 38 units of EMU 6 car trains for KTMB.

After thorough deliberation on the report, the PAC is satisfied that there are enough reasons that warrant MACC to investigate the claim on my part of ‘irregularities’ that may result in the government paying an extra amount and the rakyat shortchanged, to the tune of RM500 million for the above said procurement.

Earlier to the PAC’s decision ie on the 23 July, 2010, very ironically and clearly in a huge rush, the Malaysian Government through the Ministry of Transport saw it fit to enter into an agreement with China’s South Locomotive which owns ZhuZhou Electric Locomotive Co Ltd of China, to supply interurban rail vehicles worth RM1.89 billion.

For the record let me register the followings again.

Despite my vehement opposition and desperate attempt at highlighting that there are obvious irregularities in pricing of the purchase of 38 units of 6-car Electric Multiple Units train for KTMB, in the Dewan Rakyat during the 10-MP debate, the Ministry of Transport did not take notice of it. I could also recall that YB Arau and Kinabatangan also cried foul on this purchase.

 I have made an estimate of RM500 million price differential if MOT is to go on with the direct purchase on a direct nego basis to the same company, Zhuzhou Electric Locomotive Co Ltd of China, who were earlier identified as the winner of an 8 bidder tender (Tender KTMB/TC 11/2008), to supply 8 EMU sets of 3 car.

I have stressed in my earlier communication that a thorough perusal of both specifications revealed that the only difference in the specification was of CCTV and slide presentation panel for the new 38 EMU 6-car.

It is now the right of the people to know why, after direct negotiation, Zhuzhou has offered a very high price, roughly RM48 million for each of the six-carriage EMUs, which would total to RM1.89 billion for the 38 units as compared with RM RM13.725 million each for the 8 sets of 3-car before in the earlier tender. (1 set EMU 6 car = RM27.45 million and perhaps, RM35 million, after taking account of forex, inflation etc)

For the record, the 2008 KTM tender of 8 sets of 3-car EMU trains was cancelled and not awarded, in the light of new demands and needs highlighted by the National Key Result Area (NKRA) for Urban Public Transportation that surpassed those contained in the tender.

I have also emphatically registered that the price of the 38 EMU doesn’t include Maintenance, Repair and Overhaul (MRO) package. The Federal Government should now negotiate and conclude on price of EMU and MRO simultaneously during such procurement.

The Government must be reminded of their mistake from past experience. The Government is now paying exorbitant maintenance cost charged by General Electric (GE) and its local maintenance agent for the maintenance of 20 GE Blue Tiger Locomotives, which they did not tie-up with MRO packages.

After the PKFZ’s scandal coming home to roost, with former Transport Minister soon in the dock for what is now alleged as downright cheating of the Cabinet, the rakyat is very anxious that a repeat of this kind of procurement is surely a real disgrace for the BN and a mockery to Najib’s slogan of Rakyat First and Performance Now

The MACC must swiftly and judiciously act on the advice of the PAC for prompt investigation to be instituted as to avoid further leakages which the nation could ill afford.

 Dr Dzulkefly Ahmad, Member of Parliament Malaysia, Kuala Selangor, 4 August, 2010.

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16 Comments leave one →
  1. Better Malaysia for All permalink
    August 4, 2010 11:11 am

    The government when it comes to procurement clearly it shows either the government is BODOH or CORRUPT. There is no other way towards it.

    When they negotiate, it looks like the government doesn’t have the bargaining power which by right they should have. Contracts signed are so lopsided, we just wonder the government officers are either bodoh or corrupt. Don’t tell me you were misled or ignorance. If that is the case, you shouldn’t be there in key procurement roles where you are effectively spending the Rakyat’s monies.

    Even a fresh grad would have more common sense than these clowns in our government ministries. Its shameful for the academic institutions that they come from and sad to say majority comes from local academic institutions.

    So you have it. Our government is either BODOH or CORRUPT. Both are not good for the Rakyat. So naturally, the Rakyat need to vote them out in the next GE. The sooner the better. So bring on the GE, Najib!

    • mykantree permalink
      August 4, 2010 3:14 pm

      There is no way the government is bodoh. Or corrupt? You can bet your last ringgit that it is. In fact very very corrupt. And they make no apologies about it. That explain why they didn’t want to learn anything from their past “mistakes”, for they are no mistakes at all. It’s all part of the plot. How could anyone still have any doubt about that?

  2. James permalink
    August 4, 2010 11:35 am

    Well done YB for bringing this issue into the limelight. We the rakyat depend on good honest men like you! Hoping everyday that corrupt filth called BN gets kicked out next GE for the sake of all Malaysians

  3. clear conscience permalink
    August 4, 2010 11:38 am

    YB

    Why must so many of such mysterious deals be happening in Malaysia? MACC should go down to the wire to start investigating the trail (audit trail) of how this could be finalized to this stage. Only with this form of audit trail would we be able to identify at which stage, & at whose hands, or who suggested this or that, which gives rise to such detrimental suggestion.

    This would allow pin-pointing whose errors or who deliberately allowed these glaring errors to happen. From there suggestion of demotion, transferring out of the ministry or department etc.

    Only with a political will will Malaysia survive this competitive world biz landscape

  4. August 4, 2010 1:19 pm

    YB

    Thank you for your efforts in investigating the purchase of the 38 trainsets for KTMB, one of the final decisions made by former Minister of Transport Ong Tee Keat.

    We can only wonder if it is a coincidence that questions were raised about another costly purchase of trains made by YB Ong – this time for a set of 4 used DMU trainsets from a Spanish railway – a purchase which fell through when investigated by concerned parliamentarians.

    We also note that Minister Ong has claimed to have secured the transfer of “free” trains from Japan – Japan Rail “Blue” train coaches for intercity service and 38 units of 6-carriage EMU trainsets used for the Tokyo Metro service. However, other than the announcement from the former Minister himself, we have heard nothing from KTMB or the Malaysian media.

    -And this, YB, is the exact problem that we have with public transport – a total lack of transparency & accountability from those in the cabinet, which stretches down to those in the various government ministries, in the management of the agencies (KTMB & Prasarana) themselves, and ultimately to the frontline workers.

    It is for this reason that we do not have electric service between Ipoh and KL operating yet – even though the lines could have been made ready by August 2007. It is for this reason that we do not have improved public transport service in Ipoh, despite a 3 year delay. It is for this reason that the LRT and KTM Komuter and monorail services can have serious delays (even to the risk of passenger injury) and the Minister of Transport says nothing.

    And it is for this reason that the MACC can investigate MMC-Gamuda on the cost overrun & delays of the KTMB double tracking between KL and Ipoh and find nothing worthy of mention – and a year later MMC-Gamuda appears to be getting a free pass on their “unsolicited” MRT proposal.

    The only way to really make a difference here is to shine the light of transparency & accountability on the murky operations of government – but can a single MP do that? We at TRANSIT can only hope that many more Parliamentarians will step up and take responsbility for transportation issues – perhaps forming an unofficial “Transport Committee” to conduct research and investigate and learn about how public transport operates in other countries.

    And of course, you are welcome to join Malaysia’s public transport forum at http://transitmy.org.

    Kind Regards

    Moaz Yusuf Ahmad
    for TRANSIT

    • Dr. Dzul permalink*
      August 5, 2010 1:12 am

      Salam Moaz,
      I must say that I derive a lot consolation reading from ur response. It’s professional like u and ur NGO outfit that could make a lot of difference in the way things are run in tis country and check on govt’s excessess-leakages-abuses. We, in Pakatan, are more than willing to enagage w professional orgs and NGOs for the good of the nation and the rakyat. FYI, TRANSIT website is awesome by way of information. I’ve frequently visited it. Thnx Moaz.

  5. John Seet permalink
    August 4, 2010 1:21 pm

    Dr Zul, Please raise the issue of Increasing the salary of Ministers and Prime Minister, Chief Minister.
    PM=RM4 million
    CM=RM2 million
    Cabinet Minister = RM1.5 million
    State Minister = RM 1 million

    REASON:
    Attract bright and competent men and women from private sector to replace the corrupt ministers. After salary increase, anyone found corrupt,shoot a bullet into the corrupt skull.

    Alibaba Mahathir

  6. Change For Better permalink
    August 4, 2010 8:00 pm

    Dear Malays, as a Muslim I feel it is a sin to vote for the corrupt government. Billions of ringgit have been plundered by the very corrupt politicians and civil servants.
    Let’s vote for a change, for the sake of Allah and our nation.
    Yes, we can!

  7. Vote For Pakatan Rakyat permalink
    August 5, 2010 3:18 am

    Salam YB,

    Thank you for bringing up this matter. It is business as usual where the corrupt BN Government is concerned. All the direct negotiations only help to line the pockets of the BN flers and their cronies.

    It is futile to hope that they will change. The better move is to vote Pakatan Rakyat in GE-13 and put an end to BN’s dirty tricks and countless shenanigans.

  8. kkbboy permalink
    August 5, 2010 3:24 am

    BODOH OR CORRUPT? Most likely, both :( Either way we are paying for it.

  9. sputjam permalink
    August 5, 2010 12:13 pm

    Dear Bro Dzul,

    I congratulate you on your endeavour.
    But we must ask, did Ong Tee Kiat and the MCA used the Ministry of Transport to solicit funds for their vernaculr education funds? It seems that the MCA, including the present minister of transport, is adamant in continuing with payments to Kuala Dimensi, despite the protests.
    Since PPSMI was abolished, parents of non-bumis will start to enroll into vernacular schools again. Is it possible to ask the deputy PM, why PPSMI was abolished, and could the reason be that many nons were enrolling into the sekolah kebangsaan again and this may disrupt university placements32w`, a hot contentious issue annually.

    • Dr. Dzul permalink*
      August 6, 2010 8:23 am

      Hi Sputjam,
      We’ll make sure that PKA will not pay KDSB otherwise we have to rise and not take it seating or lying down!

  10. Joe A permalink
    August 7, 2010 5:18 pm

    Dear YB Dr Dzul

    With this recent developments on the proposed LOCO purchase from Zhou , China , you have managed to hit the nail on the Head. your sensible and common sense approach suddenly seem to have attracted some positive attention. Whatever the outcome , I believe you are one of the few YB to really have the stomach to stop the corruption and plunder of the country through many many means, direct or indirect. What I fail to understand is why the haste to buy , when suddenly for some minor variations , a massive hike in prices, and all is acceptable. Is there something seriously wrong with our Civil Service or the Politicians who run the Country. what happended to Check and balance, Prudence, Thriftines etc which will really benefit and develop the Country in the long run. The Rot which started during Tun Dr M time should stop and hope YB Dr Dzul will start a better future for Malaysia.
    Regards and keep up the excellent work.

  11. Azeem permalink
    October 10, 2010 4:58 am

    KTMB is better off on their own. Let them run as a truly corporate orgnisation. MOT should not be bothered for anything that KTMB planning to do for the sake of public interest.

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