National railway company Keretapi Tanah Melayu Bhd's (KTMB) awarded a RM47.3 million project for the refurbishment of its wagons to a subsidiary of Scomi Group Bhd through what it says was a 'restricted tender' process.

KTMB corporate communications senior manager Azizah Ujang told malaysiakini today there was there was nothing odd about KTMB not offering the project through the more transparent process of an open tender to Scomi which is majority-owned by Prime Minister Abdullah Ahmad Badawi's son Kamaluddin.

She explained that the railway company decided against an open tender to ensure that the work on the wagons refurbishment could start as soon as possible.

"We chose the restricted tender because we want to expedite the work. The reason why we outsourced the work is because we need to use the wagons [...] because it would take longer period if our workshop works on the coaches alone.

That's why it was not an open tender," she said when contacted.

She said the project was worth RM47,325,000 and was officially sealed between the two parties on April 12 last year.

When asked on what basis Scomi chosen for the project, Azizah said KTMB was confident on the company's capability to fulfill the required work involving the servicing and maintaining of some 1,500 wagons.

"We trust that the company is able to deal with the work involved. That's all there is to it."

Fears raised

The explanation from KTMB comes in wake of questions raised over the past week with regards to large, government contracts awarded to subsidiaries of the Scomi Group in which Kamaluddin owns controlling stakes.

The prime minister's commitment towards promoting governmental transparency was in the spotlight, particularly when reports emerged that yet another of the company's subsidiary, Scomi Engineering Bhd, was bidding for a project involving the fabrication of body parts for buses for the government-owned Syarikat Prasarana Negara Sdn Bhd (SPNB).

Among those who expressed reservations on the tender-awarding process were several opposition politicians who urged the premier to come clean on the RM4.4 billion public transport trust fund and the involvement of Scomi in several transport-related projects.

To quell public anger over the recent 30 sen increase in petrol prices, the prime minister had last week announced that subsidy savings up to RM4.4 billion as a result of the price hike would be channelled to the public transport trust fund for related projects.

Fears, however, were raised by several quarters in that non-transparent tender awards would jeopardise the chances of the fund being put to optimum use for the public's benefit.