The DAP has given Bank Negara two weeks to explain why a RM320 million contract was given a loss-making company - H&I Niaga Sdn Bhd - to build a Financial Services Resource Centre (FSRC).

Party Secretary-General Lim Guan Eng revealed this to reporters following a discussion between DAP representatives and Bank Negara officials in Kuala Lumpur today.

"Whether or not Bank Negara will reply, we don't know. If they do not reply, then the DAP MPs will raise the matter in Parliament," he said.

"Bank Negara must take lead in applying prudent banking practices and commit itself to corporate social responsibility instead of doing the complete opposite," he added.

Bank Negara had announced on Sept 16 that H&I Niaga had been awarded the contract after a 'rigorous' evaluation process which factored in its competitive pricing for the project.

The FSRC , a knowledge centre with learning and research facilities and a Financial Museum Art Centre, is targetted to be completed in 2007.

Justify rationale

Lim said DAP wanted to know why was the contract awarded to H&I Niaga when the latter had incurred losses of RM251,563 in 2003. He also claimed the company had not filed its financial accounts with the Companies Commission of Malaysia (CCM) for the years 2002, 2003 and 2004.

Lim said the party was also curious as to how H&I Niaga could secure bank loan facilities for the project. "When bank loan facilities can be obtained in spite of incurring losses according its latest financial report and its failure to submit previous financial reports to the CCM, something is very wrong," he said.

"Bank Negara must also explain and justify the rationale of spending RM320 million on building a new FSRC, which is essentially just a conference centre and art museum, and to not choose the cheaper option of buying the many empty building around Kuala Lumpur," added Lim.

Lim said during the meeting with the Bank Negara officials, he handed over a letter addressed to the Central Bank Governor Dr Zeti Akhtar Aziz, Lim requesting an explanation for the awarding of the contract to relating to H&I Niaga.

Present at the meeting were DAP MP for Seputeh Teresa Kok, MP for Bukit Mertajam Chong Eng and DAP Youth national executive committee Lau Weng San.

Bank Negara was represented by it Corporate Communications Director Abu Hassan Alshari.