Penang PKR today accused the federal government of being under the thumb of ‘crony company' and bridge operator UEM Group Berhad, to the detriment of the people of the state who had to pay for the rising costs of the first Penang Bridge and may suffer the same fate with the second.

NONE As proof, the party's state communication bureau chief, Sim Tze Tzin ( right ), distributed copies of a letter allegedly leaked to PKR by a whistleblower in 2008, listing key points of a proposal by UEM to the government with regard to the first and second Penang Bridge projects. Many of the proposals, he alleged, has been adopted by the government.

Among others, the letter titled ‘Penang Second Bridge Project - Financial Analysis' written by UEM managing director Ahmad Pardas Senin to Sulaiman Mahbob, director of the Economic Planning Unit under the Prime Minister's Department, detailed the government-linked firm's proposal to stop giving a 20 percent discount to Touch 'n Go card users and raising the toll for both bridges to RM9.40.

The Pantai Jerejak assemblyperson pointed to recent developments which, according to him, prove his allegation that the government is playing follow the leader with UEM.

"First came the controversial cancellation of the Touch 'n Go discounts. Last week, the prime minister confirmed that the toll at the Penang Second Bridge will be RM9.40... (This is) consistent with my earlier revelations. We are worried that the government will just go along with whatever proposals made by UEM as in this letter," added Sim.

'Shocking details '

DAP's Bukit Bendara parliamentarian Liew Chin Tong, who accompanied Sim at the press conference, chimed in that he was shocked by the details in the letter as it mirrors almost perfectly the details about the bridge projects given in the reply to his question to the prime minister in Parliament last week. He concurred that this hinted at the government being subservient to the GLC's whims.

NONE Sim had earlier revealed the details of the letter in 2008. However his revelations were refuted by then-Penang Chief Minister Koh Tsu Koon ( left ). This is the first time that the letter itself has been made available to the public.

"Something is not right with the Penang Second Bridge project. Unfortunately, according to the current BN practice, their crony companies always come first. We need to put a stop to all these corrupt practices," he added.

He said that at a time when a federal minister had warned the country could go bankrupt if it spent too much money on subsidies to the public, the government seemed to be spending a lot of money to subsidise companies like UEM.

To prove this, he pointed out details in the letter which revealed allocations of up to RM22.8 billion in financial assistance to UEM in the form of government soft loans, tax allowances and grants, for a project which only cost about RM4 billion.

Sim also gave other examples of questionable practices in the Penang Bridge projects, namely the cost which continue to escalate despite prices of building materials having gone down, the recently announced 34 percent jump in toll rates from RM7 to RM9.40, and the extension of the toll collection to 2051 despite the concession for the Penang Bridge ending in 2018.

These and other questionable details about the bridge projects, said Sim, are difficult to discuss as the terms and conditions of the contracts for the bridges are shrouded in secrecy.

"BN has never practiced transparency, and this is the only financial analysis that we have. In the name of transparency, the rakyat have the right to know," he added.

‘Declassify terms of second bridge contract'

In view of this, Penang PKR called upon the the prime minister to declassify the Penang Second Bridge toll contract between the government and UEM.

"Penangites have a right to know what is in for them. They are the people who will use it every day, They are the people who will have to pay for it for the next 40 years."

Should the government fail to do so, he added that Penang PKR will do all it can to oppose the planned toll hike.

"We will mobilise the rakyat to tell the prime minister, we don't want a toll hike. We want competitiveness, accountability and transparency in the Second Penang Bridge project," he concluded.

Sim contends that the best way to solve this issue is for the government to put the project up for bidding by open tender. He believes that competitive bidding will reduce the cost of the second bridge significantly and bring in the best expertise and technology.

Also present at the press conference was PKR Balik Pulau parliamentarian Yusmadi Yusoff.