PETALING JAYA: Finance Minister Lim Guan Eng will be visiting China to discuss the two gas pipeline projects totaling RM9.4bil that was paid to China companies based on timelines, and not on progressive work completion milestones.
"Lim Guan Eng and the Malaysia Anti-Corruption Commission (MACC) will be going to China to discuss with the relevant parties," Prime Minister Tun Dr Mahathir Mohamad said during a press conference in Putrajaya.
The projects handled by Suria Strategic Energy Resources Sdn Bhd (SSER) is a wholly-owned subsidiary of the Finance Ministry that was set up on May 19, 2016 with the specific intent to undertake the Multi-Product Pipeline (MPP) and the Trans-Sabah Gas Pipeline (TSGP) projects.
The MPP involved a 600km multi-product petroleum pipeline connecting Melaka and Port Dickson to Jitra, Kedah, costing approximately RM5.35bil.
The TSGP, on the other hand, was to build a 662km gas pipeline from Kimanis Gas Terminal to Sandakan and Tawau, costing approximately RM4.06bil.
Both projects amounted to RM9.41bil were awarded to China Petroleum Pipeline Bureau (CPPB) on Nov 1, 2016.
Dr Mahathir added that the idea to pay according to time and not work progress was "wrong".
"We want to study why this system of payment was agreed to by the previous Malaysian government," he said.
When asked if this practice was normal, Dr Mahathir said that as far as he knew, it happened only during former prime minister Datuk Seri Najib Tun Razak's governance.
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