There is no hanky-panky in the apparent hike in the cost of KTMB's new Electric Multiple Units (EMU), said former Transport Minister Ong Tee Keat.

NONE Ong (left ), who was minister when the agreement was signed, brushed aside the claim that RM500 million in public funds would be wasted as mere "innuendos hurled" without concrete evidence.

He pointed out in his blog that the difference in price between the old and new deals was simply due to the fact that the deals were for different train sets.

Ong highlighted three points to justify the price hike:

  • The 2008 KTM tender of eight sets of three-car EMU trains was cancelled and not awarded, in light of new demands and needs highlighted by the National Key Result Areas (NKRA) for Urban PublicTransportation that surpassed those contained in the tender;
  • The quantity under the procurement is for 38 sets of six-car trains. Any price comparison must always be based on the technical specifications or run the risk of comparing apples with oranges; and
  • The direct negotiation for the procurement was not directed and endorsed by the Transport Ministry but by the Finance Ministry.

pakatan pc on spr ban pondok panas 280409 dzulkefly ahmad "Perhaps parties that failed to secure the deal in the past tender either deliberately or inadvertently did not tell their spokesmen in Dewan Rakyat the entire truth about the procurement," Ong said.

Yesterday, Kuala Selangor MP Dzulkefly Ahmad ( right ) claimed that the current EMU deal, which was approved through direct negotiation, will cost the government RM1.8 billion with Chinese railway company Zhuzhou Electric Locomotive Co Ltd supplying the 38 six-car train sets at RM48 million each.

Dzulkefly alleged that this is RM18 million higher than the initial offer of RM30 million per six-car EMU offered through open tender by the same company.