A witness has told the Kuala Lumpur High Court how an initial figure of RM600 million demanded by a company as fees to help revive and provide system works for the RM12.5 billion double tracking rail project had been reduced to RM360 million.

double tracking railway track 200505 construction 3 Former Hong Leong Credit Bhd CEO Seow Lun Hoo said he and nominee company NR Sistem Sdn Bhd had provided “technical expertise” and “networking capabilities” to revive the project.

Seow said that, after MMC-Gamuda Joint Venture Sdn Bhd was re-appointed, it agreed to drop NR Sistem from providing the system works, as it wanted to appoint sub-contractors directly.

However, Gamuda Bhd managing director Lin Yun Ling, told him that NR Sistem would be compensated based on the available excess in funds allocated for the system works.

“He told us the systems contract price of RM2.388 billion and the sub-contract cost for the system works was RM1.756 billion with an estimated base cost of RM32 million. Hence there was a surplus of RM600 million based on the latest costing estimates.

“However, Lin told me that RM600 million which NR Sistem demanded was way too (high) and he asked me to reconsider lowering the amount. All this happened between February 2006 and Sept 19, 2008 when several meetings were held. I suggested an amount of RM450 million but he disagreed.”

Seow who was the principal player in finalising the deal between NR Sistem and Lin, said that, at a meeting in Kuala Lumpur in June 2008, Lin had proposed a written amount of RM360 million to be paid in two instalments.

Seow said he and two other two plaintiffs - Scomi Bhd CEO Shah Hakim Zain and Mansur Ghazali, a railway technical expert - consented to the sum, but that it was not paid.

Seow was responding to questions during re-examination by his lawyer Rosli Dahlan about his testimony in the RM360 million suit against MMC-Gamuda by the trio and NR Sistem.

mahathir abdullah ahmad badawi pak lah raising tensions Former premier Dr Mahathir Mohamad had awarded the project in October 2003 but his successor Abdullah Ahmad Badawi shelved it in December that year, citing the high cost.

Lin had testified on Monday that he had sought help from NR Sistem and Shah Hakim to revive the project.

Shah Hakim has denied making use of Kamaludin Abdullah, the majority shareholder of Scomi and Abdullah’s son, to revive the project.

MMC-Gamuda in its defence has denied that agreement had been reached between Lin and NR Sistem to undertake system works.

It has further denied that NR Sistem and Shah Hakim had liaised with the government or held meetings with it to revive the project. They also denied the notion that MMC-Gamuda lacked the necessary expertise and knowledge to undertake the project.

‘KJ not involved’

Under cross-examination yesterday by MMC-Gamuda lawyer Ranjit Singh, Seow had mentioned Khairy Jamaluddin's (KJ) name as someone who could approach top government leaders to revive the project.

khairy jamaluddin and umno Today, however, he clarified that he had only suggested that Lin should seek Khairy's help among others, to revive the project.

“....It was mere coffee talk with Lin. KJ (left) had no knowledge of all this talk. I did not approach KJ either,” he said.

Seow said Lin had approached him for help in February 2006 to revive the project, which would involve Shah Hakim meeting Transport Minister Ong Tee Keat and Effendi Norwawi, the Minister in the Prime Minister's Department in charge of the Economic Planning Unit.

An official presentation was made on Sept 21, 2006 and the project was officially revived on Dec 13, 2007.

                    

Seow also told the court that he knew MMC's Syed Mokhtar Al Bukhary, and claimed that the billionaire had reaffirmed the agreement between MMC-Gamuda and NR Sistem.

He added that, between February 2006 and Sept 2006, Syed Mokhtar would ask him about progress on the revival of the project.

The hearing continues tomorrow before Justice Rosilah Yop.