Guan Eng: Fashion company is merely an investor

  • Nation
  • Monday, 15 Jan 2018

GEORGE TOWN: Local fashion company Vertice Bhd is only an investor in the RM6.3bil Penang undersea tunnel project, said Chief Minister Lim Guan Eng (pic).
He was responding to MCA deputy president Datuk Seri Dr Wee Ka Siong who questioned why an established and listed fashion company was a shareholder of the special purpose vehicle (SPV) for the project.
Lim also said that just because a company was investing in a project did not mean that it would be involved in the building process.
"We signed the contract in front of everyone. It was not just a signing between Consortium Zenith Construction Sdn Bhd (CZC) and the state government, but the contractor, China Railway Construction Corporation Ltd (CRCC) as well," said Lim.
Speaking at a press conference in Komtar on Monday (Jan 15), Lim said the contract still stands with CRCC as the main project contractor.
Lim said the project was awarded by an open tender in 2013 according to international standards.
“No executive councillors or the Chief Minister (referring to himself) were on the tender board. The contract we signed is with CRCC” he said.
On Sunday (Jan 14), Dr Wee said there should be a public explanation on why the mega-project would now be built with the participation of a company known for fashion instead of well-funded construction companies.
Last month, Vertice Bhd bought 13.21% of shares in tunnel contractor CZC.
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