I refer to malaysiakini 's reports: ' Railway workers to picket on PM's retirement ' and ' Syed Mokhtar, Gamuda win RM14.5 bil rail project ' .

Analysts in the Malaysian construction industry and the governments of India and China must be shocked that the government awarded theDouble Tracking Rail Project to Malaysian Mining Corp and Gamuda for RM14.5 billion.

The announcement that gripped the nation has raised more questions than answers. It also infuriated India, which has given numerous projects and assistance worth billions of ringgit to Malaysian companies, including Gamuda. It is a rather strange and bizarre way of repaying a friend.

It is strange that we are not concerned about how a local company, with no track record in building railways and which was not a contender in the initial stages of the bid, could still bag an internationally floated project.

What is even stranger is that none of the government agencies, notably, the Finance Ministry - which issued the letter - has made any official announcement on the award, or the clandestine manner in which this was initiated.

The Transport Ministry, which reportedly signed the memorandum of understanding with India in May 2001 under an 'oil for rail' deal, has not made anything clearer.

My earlier fears seems to be strangely justified. Whatever the political costs or repercussion, we are now telling the world that all that matters are the billion ringgit projects, contracts and monopolies that will be doled out to well-connected individuals and companies in Malaysia.

Now there is further speculation that KTMB will be privatised to MMC-Gamuda, despite a failed attempt at privatistion previously, which ended in a 'rescue package' by ratepayers subsequently. KTMB's land banks are reportedly worth billions of ringgit.

Till this date, there has been no White Paper presented on previous failed attempts at privatisation, or the subsequent losses and the amount ratepayers lost in bailing out the failed attempts.

Which nation in its right mind will now respect future Malaysian MoUs or other bilateral agreements that we endorse?

I fear the worst for the nation, which has had a perfect record in international diplomacy and decorum until recently.