The Sarawak government has defended itself against growing criticisms for awarding the contract to construct the RM296.5 million new state legislative assembly building, without an open tender, to a local consortium with links to Chief Minister Abdul Taib Mahmud's family business interests.

In a Wednesday written reply to DAP state assemblyperson for Kidurong, Chiew Chin Sing, Deputy Chief Minister Alfred Jabu conceded that the contract was awarded to a consortium - comprising PPES Works (Sarawak) Sdn Bhd and Naim Cendera Sdn Bhd - on a design-and-build basis through direct negotiation.

The mega-project is scheduled for completion on Sept 30, 2007.

Jabu, who is also minister of infrastructure development and communications, said: "Due to the tight schedule and complexity of this project, the project was awarded to two very experienced local Sarawak-based companies with proven track records in the construction industry to ensure it will be implemented as scheduled.

"The construction cost of RM296.5 million was professionally evaluated and the terms of the contract thoroughly scrutinised by officers with the relevant expertise and professional experience from Jabatan Kerja Raya (JKR) Sarawak and the officers of the State Attorney-General (SAG) and State Financial Secretary (SFS).

"The agreed price was based on prevalent market rate, which is considered fair and competitive. Ultimately, the contract sum was agreed upon after many rounds of intensive negotiations between officers of JKR and SFS and the contractor."

Chiew, the sole opposition state assemblyperson, had asked the government to name the consortium involved and whether the controversial contract was awarded through an open tender system.

He had also wanted the government to confirm whether the project was subsequently sub-contracted out for RM228 million - about RM72 million less than the original sum.

In response, Jabu clarified that "the sub-contract works amounting to RM228 million to Binapuri Sdn Bhd constitutes only part of the overall scope of work, and therefore should not be construed to be the entire contract sum for the whole scope of the project because there are many other components of this project which are not included in the scope of sub-contract awarded to Binapuri".

He added that it was "extremely incorrect and improper" to assume that the RM228 million constituted the total amount of all the work to be done on the new state assembly project.

Opposition not satisfied

The deputy chief minister sought to dispel what he described as "insinuations that had been cast by some members of DAP that there was impropriety in the award of the contract of the project".

According to Jabu, Chief Minister Abdul Taib Mahmud was never involved in any deliberations or meetings leading to the award of the contract.

"(The building is) needed to accommodate an increase in the number of elected members after the next (state) election and for future years, and to provide adequate facilities for members to effectively serve their constituents,' Jabu said.

Meanwhile, state DAP chairperson Wong Ho Leng, in his immediate reaction, told malaysiakini that he failed to comprehend how the contract fee could be competitive when the award of the contract was not done through an open tender system.

He added that there were a lot of holes in the minister's reply.

For example, he should have explained the specific components covered by the sub-contract work of RM228 million and whether these components when added up to the rest of the components for the entire project would cover the entire RM300 million main contract fee.

State Parti Keadilan Rakyat has recently lodged a report with the Anti-Corruption Agency against the chief minister on the award of the contract to the politically-connected consortium in which PPES Works holds 55 percent and Naim Cendera 45 percent.