Zenith rubbishes Rahman Dahlan's 'overpaid by 400pct' claim
The firm which was awarded the project to build three roads and a tunnel linking Penang to the mainland has denied BN strategic communications team's (BNSC) allegations that they were overpaid as consultants.
Consortium Zenith Construction Sdn Bhd (Zenith) chairperson Zarul Ahmad Zulkifly said his firm was paid RM305 million for feasibility studies and detailed design (FSSD) while the Environmental Impact Assessment (EIA) works, involving civil and structural works, cost RM129.612 million.
"The professional fees of RM129.612 million is equivalent to 2.36 percent of the project costs of RM5.49 billion.
"The 2.36 percent is within the BEM's scale of fees," said Zarul, who clarified that the RM5.49 billion figure excluded land acquisition, FSDD and EIA costs...
The firm which was awarded the project to build three roads and a tunnel linking Penang to the mainland has denied BN strategic communications team's (BNSC) allegations that they were overpaid as consultants.
Consortium Zenith Construction Sdn Bhd (Zenith) chairperson Zarul Ahmad Zulkifly said his firm was paid RM305 million for feasibility studies and detailed design (FSSD) while the Environmental Impact Assessment (EIA) works, involving civil and structural works, cost RM129.612 million.
"The professional fees of RM129.612 million is equivalent to 2.36 percent of the project costs of RM5.49 billion.
"The 2.36 percent is within the BEM's scale of fees," said Zarul, who clarified that the RM5.49 billion figure excluded land acquisition, FSDD and EIA costs.
He said some portion of the project, such as the double-decked elevated highway and tunnels, were highly technical in nature, which required the involvement of specialised foreign consultants as there were no local specialists.
"As such, their fees are hard to benchmark as the current professional institutions in Malaysia do not have the standard scale of fees for special consultants to refer to.
"Therefore their fees had to be benchmarked against international standard fees," he added.
Comparing apples with oranges
Yesterday, BNSC head Abdul Rahman Dahlan had shown a written reply from the BEM which stated that Penang should have paid only RM41 million in consultancy fees.
According to Abdul Rahman, Penang had paid RM177.5 million instead, about four times more the figure cited by BEM.
However, Zarul said Abdul Rahman may have misunderstood the BEM correspondence because the RM41 million refers only to civil and structural cost.
Zarul said that the RM177.5 million referred to be Abdul Rahman also encompasses civil, structural and geotechnical engineering design, quantity surveyor fees, land tunnel design, architectural design, mechanical and electrical works, project management, social impact study, traffic impact study, financial feasibility and funding management, among others.
Zarul said the Penang branch of the Institute of Engineers (IEM) was briefed on this by the state government on Sept 2, 2015.
At the time, the IEM had said that the RM305 million quoted by Zenith for the FSDD and EIA works for the three major roads and tunnel was "reasonable and competitive", Zarul added.
Minister should come talk to us
Furthermore, similar presentations were made to the works ministry on April 6, said Zarul.
Zarul said the meeting on April 6 was chaired by Works Minister Fadillah Yusof, and attended by Penang Chief Minister Lim Guan Eng, state executive councillor Lim Hock Seng, and Malaysian Highway Board director-general Ismail Md Salleh.
"There were no adverse statements, remarks, or comments raised during the briefing," said Zarul, who also happens to be a Sungai Besi Umno branch member.
Zarul expressed hope that his clarification would satisfy Abdul Rahman, while urging the latter to meet Zenith for further clarification if needed.
"We also wish to seek an appointment with BEM for further briefing and clarification," said Zarul.


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