The postponement of the 623km double-tracking and electrification project would create a "missing rail link" in the line spanning the peninsula that makes up the 5,500km trans-Asia route connecting southern China and Singapore, claimed an opposition parliamentarian.

PAS MP for Kubang Kerian Husam Musa, said the suspension of the multi-billion ringgit northern and southern grid railway project would render ongoing works along the Ipoh-Rawang stretch redundant.

"(The stretch that is currently) under construction would thus become a white elephant project, wasting RM4.73 billion (in the process)," he said when contacted yesterday.

Husam was responding to the confirmation by Prime Minister Abdullah Ahmad Badawi in Tokyo yesterday that the Ipoh-Padang Besar (336 km) and the Seremban-Johor Baru (287 km) sectors of the controversial rail project have been put on hold pending a final decision next week.

Special squad

The parliamentarian said while problems cannot be avoided, solutions need to be sought because Malaysia has "wasted almost RM250 billion in its privatisation programme over 22 years".

By postponing the project, Abdullah, he said, has chosen the easiest way out in dealing with the double-tracking controversy to "cover a possible scandal".

He said the time was right for the new premier to conduct post-mortem investigations into previous privatisation projects and practise transparency in governance.

"(The priority is to) find a solution to complete the north-south double-tracking project at the lowest cost with technically acceptable specifications," he stressed.

Husam said a special squad should be appointed to probe into possible malpractices and irregularities involving the project right from the start.

The controversial 11 th hour awarding of the country's single largest infrastructure project to a local consortium - Gamuda Bhd-Malaysian Mining Corporation Bhd JV - has raised concerns over a possible diplomatic fallout with India and China.

India's state-owned Ircon International Ltd, its partner consortium China Railways Engineering and Telecommunication (Cret) and Mitsui & Co Ltd were issued with letters of intent last year for the northern and southern grid rail jobs.

But days before former premier Dr Mahathir Mohamad retired, the India-China consortium was dropped in favour of Gamuda-MMC JV, raising concerns over a diplomatic fallout with India and China.

The government-to-government deal involved a counter-trade of eight million tonnes of palm oil worth some RM12 billion as payment in kind over a period of six years, but reports of subtle forms of retaliation are already in.

Pak Lah's test

DAP chairperson Lim Kit Siang, who asked Abdullah to probe the rail deal, commended him for "passing the first test as PM in his 40 th day in office" by deciding to postpone the project.

He said the cabinet decision would uphold fair, transparent and competitive public procurement and help avert a trade war with India and China.

The party had been calling for the cancellation of the project and to re-open bidding in the country's best interest, at home and abroad.

"However, Abdullah probably felt that an indefinite postponement on the ground of 'priority of needs' and affordability is a more politically-wiser step, leaving open a new controversy as to the very economic rationale and justification of such a project," he said in a statement.

The premier had reportedly said that if the project was revived later, Gamuda-MMC JV would be given a choice to decide if it still wanted to proceed.

Lim said an earlier option brokered by Works Minister S Samy Vellu using a nominated contract to give Ircon a sub-contract job for the northern grid - with payment coming directly from the government - was not a satisfactory solution.

Ircon, Mitsui and Siemens AG, as well as several local companies were in the running for various parcels of the project prior to Wednesday's cabinet decision.

Meanwhile, the online edition of The Edge Daily reported that in its reply to the Kuala Lumpur Stock Exchange, MMC had stated that it has not received any notification from the government regarding the status of the project.

The business daily also reported that Gamuda and MMC shares took a tumble - more than 11 percent and seven percent respectively - following news of the project's uncertain future yesterday.