Guan Eng: Bulk of 101 direct negotiation projects were from BN govt

KUALA LUMPUR: The list of 101 government projects worth RM6.61bil said to be awarded by the Pakatan Harapan government via direct negotiations were mainly projects initiated or a continuation from the previous Barisan Nasional administration, says former finance minister Lim Guan Eng (pic).

During its 22-months tenure in Putrajaya, only RM352mil of the RM6.61bil projects were initiated by Pakatan, he added.

"The remaining RM6.258 bil were projects that were initiated or continued from Barisan's time that had to be continued by Pakatan," said Lim in a press conference at the Parliament media room on Thursday (Aug 27).

Also present were former Pakatan ministers Mohamad Sabu, Datuk Saifuddin Nasution Ismail, Yeo Bee Yin, M.Kulasegaran, Dr. Xavier Jayakumar; other deputy ministers and MPs.

Lim said the list recently revealed by Finance Minister Datuk Seri Tengku Zafrul Aziz included five projects worth RM4.48bil that were carried out by the Barisan government before Pakatan took over.

Among them were the phase two Klang Valley Double Track project (KVDT2), which was offered to the company at a price tag of RM5.265bil by Barisan through direct negotiation.

"After Pakatan took over, we found the amount offered was too high, so the Cabinet decided to cancel the contract," said Lim.

However, Lim added that the contractor company pleaded with the government and comprehensive negotiations were held.

"The Pakatan government decided to continue with the project with a lower price of RM4.475bil, a saving of RM790mil.

"This also helped to manage any legal tussle between the company and the government so the Finance Minister (Zafrul) should praise Pakatan as we helped to save money," claimed Lim.

He said the other four projects under the Ministry of International Trade and Industries worth RM8.18mil that were done in April 2018.

Lim also said that from the 101 projects revealed, some 31 projects worth RM1.753bil were implemented during Barisan's time and many were services or supply-related contracts that needed certain expertise or were due to monopoly.

One example was during the 2018 Fifa World Cup event, where the then Communications and Multimedia Ministry under Pakatan announced that the government would not bear the RM29.9mil cost to air the game.

Lim said although RTM under the Communications Ministry had paid (RM29.9mil for the broadcasting of the game), the entire cost was recouped through sponsors.

"Apart from that, Sport Media & Distributor (that holds the intellectual property rights for sports) has the monopoly right to air the World Cup matches in Malaysia.

"That is why open tender could not be done in this situation," said Lim.

He said from the RM352mil in projects under Pakatan, a bulk of it or RM170mil was allocated for solid waste management under the Housing and Local Government Ministry.

However, its minister Zuraida Kamaruddin has denied all knowledge of the projects awarded through direct negotiations by her ministry under Pakatan.

Zuraida, who also held the housing and local government portfolio during Pakatan's tenure said she was not in the know of the deals and vowed to look into it.

To this, Lim said he found it rather "unusual" that Zuraida was not in the know, and asked her to ask Zafrul.

Saifuddin Nasution, the former domestic trade and consumer affairs minister, said his ministry also carried out a campaign that cost RM160mil, and he was in the know about it.

"So I find it weird that she didn't know. She was probably sleeping."

When asked about the allocations approved for Datuk Seri Azmin Ali's then Economic Affairs Ministry, Lim merely said he had "trusted the wrong person."