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Published: Monday December 23, 2013 MYT 5:57:00 PM
Updated: Monday December 23, 2013 MYT 7:11:11 PM

Contracts worth over RM153mil for incinerators given to company with no track record, says Kian Ming

An incinerator in Pangkor Island

An incinerator in Pangkor Island

KUALA LUMPUR: Serdang MP Ong Kian Ming has taken the Government to task over five incinerator contracts worth over RM153mil handed to a company that allegedly has no experience constructing incinerators.

Two incinerators in Langkawi and Pangkor, with a contract value of RM68.4mil and RM20.3mil respectively, were given to Syarikat XCN Technology via direct negotiations, while contracts for incinerators in Tioman worth RM22.8mil and Cameron Highlands (RM42.2mil) were given to Syarikat Sumur Mutiara, which then handed the contract to XCN Technology.

A fifth incinerator project in Labuan was awarded to XCN Technology in Jan 2013, also via direct negotiations.

"XCN Technology did not have any prior experience with constructing and operating incinerators prior to being awarded these contracts," Ong said at a press conference Monday.

"The National Auditor Report 2012 revealed that all of these projects faced significant delays in construction and operational deadlines.

“What was not revealed by the report was that XCN Technology is controlled by Dawn Holdings (51%), which in turn is controlled by Tan Sri Abdul Wahab Haji Navi, the chief of Navy from 1986 to 1990 and his family."

The remaining 49%, Ong claimed, was owned by Clean Earth Technology, controlled by three family members who were also directors in XCN Technology.

"The three directors, Gideon, Caleb and Priscilla Khoo, filed an international patent in 2009 for a new incinerator technology based on autogenous burning which was then used by XCN Technology for these incinerators.

"It was an unproven technology when the contracts were given to XCN Technology and the National Audit Report found that the Pangkor incinerator was not burning autogenously as it failed to achieve the minimum required 850c temperature."

Failure to reach the minimum temperature could result in toxins being released into the air, added Ong.

He called on Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan to explain why a contract was given to a company that lacked a track record in building and operating incinerators, and why a company pushing an unproven technology was awarded the contract.

He asked for an estimate of the operational costs of the incinerators to assure the rakyat the costs weren't exorbitant.

He also demanded a status update on the incinerator in Labuan, and to know why XCN Technology was chosen despite many delays in the four other incinerators.

Four of the five projects are currently delayed, with the Pulau Tioman incinerator delayed for close to 1,000 days.

 According to XCN Technology's website, the completion date for the Langkawi, Pangkor and Cameron Highlands incinerators was 2010.


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