RM900mil contract for 'minor' construction firm?
PKR secretary-general Saifuddin Nasution has questioned the alleged award of a project worth up to RM900 million to build a women and children's hospital in Kuala Lumpur to a minor construction company and its joint-venture partner, UEM Group Bhd.
PKR secretary-general Saifuddin Nasution has questioned the alleged award of a project worth up to RM900 million to build a women and children's hospital in Kuala Lumpur to a minor construction company and its joint-venture partner, UEM Group Bhd.
Saifuddin (
left
) was referring to Penang-based Najcom Sdn Bhd, which he alleged was comparatively small and owned by individuals "closely connected to Barisan Nasional".
"Its biggest project to date has been the construction of the Malaysian Institute of Pharmaceutical and Nutraceutical at Universiti Sains Malaysia for RM80 million, awarded in 2008," he said in a press statement yesterday.
This, he said, was "hardly a suitable company by experience and size to carry out a national project costing nearly RM1 billion".
Saifuddin made the comments based on a report by The Edge Financial Daily that Najcom and UEM had secured the project in an open-tender process. The hospital project is estimated to be between RM700 million and RM900 million.
The Machang MP noted that UEM Group, a leading engineering conglomerate, too has links with Umno.
"Therefore, it is of a great concern that yet another expensive public project has been awarded to closely-connected companies in secrecy, under the guise of private finance initiatives."
Full disclosure sought
Saifuddin called for full disclosure of the award of the project to Najcom and UEM.
"This includes the financing methods proposed, comparison of values accrued to the government under different proposals by other bidders and the main consideration to mitigate Najcom's lack of experience and financial capability to carry out such a massive project."
According to The Edge , Najcom is 52.5 percent controlled by Zainabbi Abubacker and 47.5 percent by Haja Najmudeen Kader.
The report said apart from another RM11.15 million project to renovate the Penang court complex, Najcom's projects are largely worth under RM10 million..
When contacted this morning, both UEM Group Berhad and Najcom director Haja declined to comment.
Haja advised Malaysiakini to confirm the company's projects with the Public Works Department. However the attempts were futile.


Are you sure you want to delete this comment?
This action cannot be undone.