NGOs chide Gamuda for 'self-serving' defence of PSI EIA process

A trio of NGOs have scorned Gamuda Berhad's response to the call for a new environmental impact assessment (EIA) to be carried out on the Penang South Island (PSI) reclamation project.

"Gamuda’s defence of its PSI project is self-serving and unsustainable.

“It has a vested interest in the mega reclamation project, expecting to make millions, perhaps billions, of profit.

"Therefore, its claims of the project benefiting the public must be taken with a pinch of salt," said Consumers’ Association of Penang president Mohideen Abdul Kader, Sahabat Alam Malaysia president Meenakshi Raman and Penang Forum's Khoo Salma in a joint statement.

This came in the aftermath of the recently granted EIA approval for the project, which nonetheless saw Meenakshi saying that the EIA process must be redone after scaling down the project from three islands to only one.

"Gamuda claims that the latest EIA went through a rigorous process and should be accepted, and those disagreeing with it should go to court to challenge it. This is a red herring.

"Firstly, before any project is approved, there must be a need for it in the public interest. Despite repeated demands by civil society organisations, the state government has failed to justify the reclamation.

"Initially, it claimed it was needed to finance the Penang Transport Master Plan (PTMP). That reason doesn’t exist anymore with the unity government in power. If the land is needed for development, are 12,000ha available in Seberang Perai?" said the NGO leaders.

Calling the EIA flawed, they said it did not take into sufficient consideration that the project will result in the destruction of an important fishery in Penang which provides income for over 3,000 people and their families, and food – fish, prawns, crabs and other marine life – for consumers.

Gamuda, the majority shareholder of the SRS Consortium Sdn Bhd undertaking the PSI reclamation works, said previously that opponents calling for it to be scrapped or scaled down did not demonstrate respect for due process.

"The clamour for the project to be scaled down or even scrapped by parties uneasy or unhappy with the approval decision reflects scant regard for the integrity of the due process and even the rule of law underlying it.

"What are the implications for the approval process of future development projects? Are foreign investors more reassured and undeterred from investing in our country?" asked Gamuda.

Warnings unheeded

The NGOs cited a letter on June 25, 2019, in which the former environment department director-general had advised the state government that the PSI would “cause permanent and residual impacts on mudflat ecosystems, fishing grounds, turtle landing areas, and some coral reefs in Pulau Rimau”.

"This permanent destruction will have a significant negative impact on fisheries resources, fisheries and the security of national food supply”.

They said that despite this warning, the EIA for the reclamation project was approved.

"That speaks volumes for the independence and objectivity of the EIA process," claimed the NGOs.

They also dismissed Gamuda's claims that over 93 percent of public comments on the EIA favoured the reclamation project.

"This is not a popularity contest. Those who approved the EIA should have scrutinised the grounds given by informed and knowledgeable civil society organisations (CSOs) and individuals for objecting to the project and provide reasons why they were not accepted. They have not done so," said the NGO leaders.

They also highlighted that the company’s claim that “the PSI project has secured a high Social Impact Assessment approval rating of 79.1 percent from the local community, and more specifically, the support of 74.8 percent of the local fisherfolk,” was challenged during the EIA feedback process, as being exaggerated and misleading, and without proper basis.

"We pointed out that the sample size was too small for such conclusions. All this was ignored, including opposition to the project by the State Fishermen’s Association, representing 6,000 members.

"In fact, we were shocked at the so-called ‘economic valuation of the environmental impacts’, which we have pointed out is a gross economic undervaluation.

"For example, the latest approved EIA quotes the unit price of shrimps as RM6,000 a ton in 2022, which works out to RM6 a kilogramme! This is unbelievable, for anyone who buys shrimp will tell you that the unit price is at least 10 times higher than stated in the EIA.

"Yet, such gross undervaluation is allowed in the EIA," said the NGOs.

They also hit out at Gamuda's claims that the programme will enhance marine biodiversity in the project vicinity.

"From what we have read, these are experiments which are being proposed to recreate what will be lost irreplaceably forever, like the mudflats, coral reefs and fishing grounds, which are classified as ‘trade-offs’ when in reality, what is being done is to write them off in perpetuity.

"Destroying such natural and essential ecosystems and replacing them with fake speculative options with the hope of enhancing marine biodiversity is highly irresponsible and unacceptable to us. This is not development but destruction!

"We stand firm in our opposition to the unwarranted PSI and once again reiterate our call and appeal to the federal and state governments to scrap the project," they said.

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