Prime Minister Abdullah Ahmad Badawi (Pak Lah) missed a great opportunity to stop the construction of the Customs, Immigration and Guarantine (CIQ) Complex when it was just off the ground at the time of taking over the premiership from Dr Mahathir Mohamed.

He allowed indecision to drag on until the fast shaping CIQ Complex increasingly assumed the look of a white elephant without the bridge to Singapore. There were two viable alternatives then: construct a full bridge with Singapore's concurrence or build a land connection from the causeway to the CIQ Complex.

When it was apparent that the stalemate with Singapore could not be resolved, there was only one viable option left - to go for the land connection. Why didn't the government do just that? Why embark on a preposterous third alternative of a crooked half-bridge?

The aggressive language used by Najib in relaunching the crooked half bridge was perhaps worthy of his reputation as torch bearer of Dr Mahathir Mohamad's legacy, noting that the announcement was instantly applauded by a jubilant Mahathir. And Pak Lah s weak rejoinder later only reflects the current political realities in Malaysia - a weak reformist leader being led instead of leading.

Now that the bridge is scrapped and Mahathir is thumping his chest, does that mean Mahathirism is on the wane? Certainly not. Giving up the bridge could not be construed as an act of defiance against Mahathir's wish, but rather as an involuntary decision forced upon Malaysia due to the failed Malaysia-Singapore negotiation.

In fact, the Mahathirists did try, but failed. Though Mahathir may not have the final say on certain administrative decisions, the corrupt and feudal system created by him is well entrenched and continues to be upheld by its beneficiaries who cover the entire spectrum of the ruling elite.

Favouritism on show

Turning to the contractor undertaking the project, Gerbang Perdana Sdn Bhd (GPSD), many must be wondering what this entity is and why it should receive such favourable treatment from the government. When Pak Lah announced the cessation of the bridge project, he also said that the contractor would be compensated with RM100 million in addition to further award of government projects.

As the half- bridge was billed at RM620 million, the compensation of RM100 million alone would constitute 16 percent of the contract price. Considering a contractor would normally build in a profit margin of around 5 percent for a project of this size in his tender, and if awarded the contract, he may or may not make any money, isn't Pak Lah's compensation package indecently excessive?

Why pay a contractor for not doing the work a sum that equals many times the profit of a contractor who has completed the work? Or does the quantum of this compensation imply that GPSD's built-in profit margin under the negotiated contract for this project is many times 16 percent?

Under a construction contract, the contractor is not entitled to claim for loss of profits. He can only claim for the additional costs incurred in mobilising and demobilising his plant and workers on site in the event of an abortive project. In this instance, the compensation to GPSD should be in the thousands, not millions (certainly not a hundred million). And the promise of further awards of government projects, particularly non-tendered ones, is certainly out of order.

Why should the government have felt such indebtedness to the contractor that it has showered generosity that borders on criminal collusion? Hasn't the government done enough favours by awarding such huge contracts (RM2.4 billion) without a tender? What powerful people are behind the contractor as to deserve such preferential treatment from the government?

Pak Lah must now come clean with the people.

Just to think of it, only days ago our leaders were exhorting the people to go for a change of life style to cope with the steep escalation of fuel prices, so that the government could save a few billions in subsidies. And now the same leaders are squandering billions of the people s money without batting an eyelid. What a great irony!

Parasitic shareholder?

Now, let us take a closer look at the contractor GPSD. It was incorporated on Sept 26, 1998 and has a paid-up capital of RM7.6 million. Its shareholders are Merong Mahawangsa Sdn Bhd (60 percent), Detik Nagasari Sdn Bhd (20 percent) and DRB-Hicom Bhd (20 percent).

It is interesting to note that Detik Nagasari is owned by a RM2 company. Detik's entire paid-up capital of RM100,000 is held by Fabulous Channel Sdn Bhd, which was incorporated on Dec 14, 2004 and has a paid-up capital of RM2. Prior to 2005, Detik was wholly owned by Hyundai Berjaya Corporation Bhd, a company originally controlled by Vincent Tan (photo) but was subsequently taken over by the Sime Darby group towards the end of 2004. It is apparent that Fabulous Channel must have been hastily set up then to take over the 20 percent interest in the southern gateway project when Tan gave up control of Hyundai Berjaya.

Who controls Detik? The company has two directors, both from the Berjaya group, meaning Tan is still in control. And who owns the RM2 paid-up shares? Two women with the same surname, one aged 58, the other 25.

Considering that GPSD holds two government contracts (one for the CIQ Complex, one for the bridges) valued at RM2.4 billion, which were won without tender, its eventual profits from this project could potentially run into many hundreds of million ringgit. So, Detik's 20 percent share in this venture could well exceed RM100 million eventually.

Is it not unusual then that this huge fortune will land in the lap of two people who have only subscribed for RM2 shares in the company? If Berjaya or Tan is the real beneficiary of this fortune, it is most unlikely that either would have carried this asset in such fashion.

So who is the true beneficial holder of this 20 percent stake in this project? His share of the bumper compensation of RM100 million declared by Pak Lah is already equal to RM20 million net profit. Shouldn't this be an important subject of investigation by the Anti-Corruption Agency?

Other glaring irregularities in the award of this project are the absence of competition, the lack of transparency in the awarding procedure and inadequate financial standing and mediocre track record of the appointed contractor for a project of this size.

In fact, if not for the RM1.7 billion medium-term facilities secured with the unconditional and irrevocable guarantee provided by the government, the contractor could not have carried out its work. Suffice to say that GPSB might not even have been pre-qualified, not to mentioned awarded, if a proper tender was held.

In retrospect, the entire saga of the CIQ Complex-cum-bridge project is reflective of a flawed system of governance that has transcended intact within a leadership change from a notorious autocrat to a self-proclaimed reformer.

Stop nonsense over half-bridge (Part 1)