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.