BN strategic communications director Abdul Rahman Dahlan wants the Penang government to explain how the feasibility study and associated project paperwork for the proposed Penang undersea tunnel can cost as much as RM305 million.

Quoting PKR Kebun Bungah assemblyperson Cheah Kah Peng, Rahman said that a Penang Public Accounts Committee report had noted that nearly RM139 million has been paid to a consulting firm for the Penang tunnel feasibility study and environmental impact assessment report.

Cheah, along with five other assemblypersons from PKR and DAP, had apparently rebelled against the state government when one voted for a state opposition motion to declassify all projects related to land reclamation, while another five did not attend the proceedings.

This led to several of them being fired from state posts.

Rahman noted that Cheah reportedly said they find it difficult to justify such a large sum for just for an EIA report and feasibility study and supported or made themselves absent during the vote as a sign of protest.

"We share the concern of the six assemblypersons about the RM305 million which is a hefty sum just to pay for paperwork and reports. Furthermore, the need for the project is questionable as the traffic situation at the Penang Bridge is generally still manageable.

"We are confident that the RM305 million can be of more use to the welfare of the people in Penang. The RM305 million is twice the amount that the DAP-led state government had spent from 2009 to 2015 for its welfare programme for senior citizens, single mothers, those with special needs, students, and newborn babies," he said in a statement.

‘Conflict of interest’

Furthermore, Rahman said that the company appointed by the state government to prepare the reports, Consortium Zenith BUCG (CZBUCG) is the same company which will be the main contractor for the project should it go through.

"Clearly, the DAP-led Penang government does not understand what conflict of interest means," he sniped.

Indeed, he claimed that the first subcontractor appointed by the consortium was Astral Supreme Construction Sdn Bhd, which a search at the Registrar of Companies found to be a company that CZBUCG has a majority share in, and that had failed to deliver on the same reports when it was contracted to do so earlier.

Other than unearthing another conflict of interest, Rahman claimed that the inability of the subcontractor to finish the study will surely cause further delays to the project if it were to take off the ground.

Citing a disclosure to Bursa Malaysia by Ewein Berhad dated Mar 31, 2015, Rahman also alleged that CZBUCG has already been paid in advance by the Penang government for the tunnel project, with nearly 110 acres in prime seafront properties worth over RM6 billion.

Ewein had reportedly purchased some of these from the consortium, as stated in its disclosure to the local bourse.

‘Isn't tolled roads against Pakatan manifesto?’

On top of all that, Rahman also claimed that the state government is going to give the consortium a 30-year toll concession, while paying for the entire project using taxpayer monies.

"Isn't tolled roads against the Pakatan manifesto?" he asked, questioning if the contract was a means for the state government to allow CZBUCG to reap easy profits at the public's expense.

Rahman urged the Penang government to explain why it is paying RM305 million just for basic paperwork and reports, and if the matter was handled via open tender.

He also wants to know why RM139 million was disbursed for an incomplete job and why seafront properties worth RM6 billion are being given to the consortium as part payment.

Editor's Note: Malaysiakini had earlier referred to only "feasibility study" in the headline and lede of this article, when it should refer to the entire project paperwork as explained later in the text and article summary. A correction has been made to reflect the above. We regret any misunderstanding and inconvenience.