The seven-year delay to the completion of the Malaysian External Trade Development Corporation (Matrade) building has resulted in its estimated cost to surpass the RM400 million mark. This prompted Parliamentary Opposition Leader Lim Kit Siang to call for an urgent probe today.

The initial cost for the building, scheduled for completion in 1997, was specified at RM167 million. However, the contractor Perangsang International Sdn Bhd (PISB) failed to meet the deadline.

In a statement, Lim said if the building is completed in mid 2006, the new deadline given to the contractor, the total cost would be more than RM406 million.

He added that PISB would have to cough up RM120 million just to cover the Liquidated Ascertained Damages (LAD).

"The question is, why has the Finance Ministry allowed PISB to defer payment of the LAD ... until the completion of the project, which is still not in sight?" asked the veteran opposition leader.

Lim said the high figures do not take into account the loss of RM15 million as a result of Matrade's rental at Wisma Sime Darby, which would have been saved if Matrade's new building was completed as scheduled.

He urged the cabinet, which meets tomorrow, to identify "the actual role of the various ministries, departments and government officers at every stage of the decision-making process liable for the tragedy of expensive errors."

Construction on the Matrade building began in 1994 and was scheduled to be completed in 1997, before being given an 18-month reprieve by the works ministry.

In January 1999, the Works Ministry gave PISB until mid 2006 to complete the building.

English daily New Straits Times had earlier reported that PISB, which in 2003 suffered RM284,000 loss and had net liabilities of RM7.6 million, was sold last July for RM2 to Tajuk Modal Sdn Bhd.

Police report

Meanwhile, PAS Youth chief Salahuddin Ayub yesterday filed a police report on the matter with the Dang Wangi police headquarters.

He said the Selangor state government should also be investigated over the delay in the construction of the building.

In 1995, PISB came under the state government's investment arm, Kumpulan Darul Ehsan Bhd (KDEB).

In his report, Salahuddin said the contractor engaged by the Works Ministry for the Matrade building included on its board the brother of a former Selangor menteri besar.

Upon a check at the Registrar of Companies today, it was found that Raduan Muhammad Taib - who is brother of Umno leader Muhammad Muhd Taib - was appointed to PISB's managing director in late 1995.

The Matrade building is among several projects under the spotlight as a result of recent criticisms of Works Minister S Samy Vellu, whose detractors claim should resign following a number of fiascos relating to infrastructure and construction projects.

Earlier this week Samy Vellu asked for Perangsang to be de-registered as a government contractor and imposed a RM80 million fine for the delay.