Guan Eng: Why can't Najib explain pipeline payments?
PARLIAMENT | Finance Minister Lim Guan Eng today expressed his puzzlement that the previous BN administration paid 88 percent of the total value for two pipeline projects, despite construction only being 13 percent complete.
"This is a situation we fail to understand at all," Lim told the Dewan Rakyat during the question-and-answer session...
PARLIAMENT | Finance Minister Lim Guan Eng today expressed his puzzlement that the previous BN administration paid 88 percent of the total value for two pipeline projects, despite construction only being 13 percent complete.
"This is a situation we fail to understand at all," Lim told the Dewan Rakyat during the question-and-answer session.
"Many perceived this as something extremely wrong, and up until now, we have yet to hear any explanation from (former prime minister) Najib Abdul Razak or anyone from the previous administration.
"So, this remains a question to us as to why over 80 percent was paid with only 13 percent completed, as (we have) not yet conducted an audit on this."
Earlier this week, Prime Minister Dr Mahathir Mohamad confirmed that the government seized more than RM1 billion from a bank account of Beijing-owned China Petroleum Pipeline Engineering (CPP) over two incomplete pipeline projects.
The first is the 600km Multi-Product Pipeline (MPP) along the West Coast of the peninsula worth RM5.35 billion, and the other is the 662km Trans-Sabah Gas Pipeline (TSGP) gas pipeline network in Sabah worth RM4.06 billion.
Both projects were approved by the previous BN government on July 27, 2016. The projects were awarded to China Petroleum Pipeline Bureau (CPPB) on Nov 1 that year.
Suria Strategic Energy Resources Sdn Bhd (SSER), a subsidiary of the Finance Ministry, had paid out RM8.3 billion – 88 percent of the construction cost – despite unaudited work progress estimated at just 13 percent.
Following the seizure, Lim said Putrajaya is still in talks with Beijing to demand excess payments. Putrajaya is being represented by the Attorney-General's Chamber and relevant ministries, he added.
"They have been given the mandate to negotiate the terms, compensation and conditions of the cancelled projects," he told Chan Foong Hun (Harapan-Kota Kinabalu).
Chan had asked about what the government was doing to recoup the remaining RM3.54 billion for the TSGP project.
"Since negotiations are still ongoing, we have yet to finalise the exact amount of compensation and excess payments," the finance minister responded.
Chan also asked how the claim would be pursued while maintaining cordial ties with China.
Lim explained that the seizure was aimed at a company instead of a state, adding that he believes Beijing understands the issue.
"We need to make it clear that the action was conducted against a company, not a nation," he said, adding this was being done in the interest of Malaysia.
