Universiti Teknologi Mara's (UiTM) reply to allegations about overblown costs in privatised campus constructions is proof that the claims of abuse have merit, said PKR.


 Pandan MP Rafizi Ramli in a statement today said that UiTM management's reply in not denying the allegations of cronyism but only addressing the merits of private finance initiative (PFI), is in fact an affirmation.


 'UiTM's media statement last night represents the first official response in a week after my expose...


 "However, the UiTM management has not at all denied my expose regarding who the Umno cronies who are behind the concessions are.


 &ldquo;(In doing so), UiTM&rsquo;s management&nbsp; has in fact helped confirm that the facts regarding the
 <a href="http://www.malaysiakini.com/news/265473">
 
 cronies
 
 </a>
 behind the concession companies and the increase in the cost that been brought up by me is true,&rdquo; said Rafizi, who is PKR&rsquo;s director of strategy.


 Rafizi Ramli last Thursday alleged while the original cost for six UiTM campuses was only RM1.8 billion, the government will end up forking RM8.6 billion for all the six campuses after signing concession agreements to have private firms construct and manage them.


 &nbsp;


 He noted that all the university could explain was that the PFI that the outsourcing entails would financially benefit UiTM.


 Rafizi said the argument was flawed and listed a number of problems with UiTM's reply.


 
 
 'No tender, lopsided contracts'
 
 


 He said UiTM&rsquo;s implementation of the private finance initiative (PFI) was flawed because it was awarded through direct negotiations instead of open tenders, and the awarding of contracts to inexperienced companies that seemed only to have been set up to clinch the contracts.


 &ldquo;The crony companies involved do not have experience in handling a big project. This will cause many problems like facilities not built according to specifications and improper maintenance during the execution of the project&rdquo; said Rafizi.


 He said it would also be a burden to the rakyat in the long run because of the allegedly lopsided deals, just as was Selangor's experience with several other projects that Pakatan had been saddled with from the previous Umno government.


 &ldquo;Through this privatisation, the cost of construction has bloated to RM8.6 billion instead of the original cost of only RM1.8 billion.&rdquo;


 He said the rental that has to be paid by the university to the concessionaires this year alone has surpassed 14 percent of the allocated budget.


 &ldquo;When completed, the rental that has to be paid by UiTM to the concessionaire will be their biggest financial burden annually,&rdquo; he said.


 &nbsp;


 Rafizi warned this may eventually force UiTM to have to cut costs in various areas including sizing down their staff, cutbacks on upgrading of facilities and increasing student&rsquo;s accommodation rent.

He notes that UiTM's official reply does not deny any allegations of cronyism.


Rafizi: UiTM's silence on expose is proof

~RM12

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