Wow so easy to kick out BUCG from Consortium Zenith – PCM

 |Sep 6, 2016


PCM veep Huan Cheng Guan.
PCM veep Huan Cheng Guan.

Parti Cinta Malaysia (PCM) has taken the Penang government to task for agreeing to omit Beijing Urban Construction Group (BUCG) from Consortium Zenith-BUCG, which was to implement a multi-billion ringgit infrastructure project in the island.

PCM vice-president Huan Cheng Guan said the withdrawal of BUCG would be a material change in the request for proposal (RFP), which means the original award must be cancelled as the basis of award has substantially changed.

He questioned on how the DAP-dominated state government so easily changed a joint venture company in charge of the mega undersea tunnel-three by-pass pair highway project after spending millions to carry out a never ending geo-technical and feasibility studies.

Huan pointed out that the project tender was originally awarded based on the strength of BUCG as Zenith itself was a new company and was weak financially at the point of award compared to BUCG.

“So now who’s funding the project? What about the monies already paid for the dodgy RM305 million studies?

“You mean can simply change project structure like this even though it materially changes the basis of award?

“That’s why studies take four years to complete and nothing is built, deadlines keep missing up to now despite hundreds of millions paid and billions of ringgit of Penang state land sold or pre-sold?

“Wow… so easy to change JV company for a mega-billion project,” said Huan, pointing out that terms and structure of the company was now completely different from when the mega-billion project was first awarded by the Penang govt.

Three years ago, he said Penang people were told that a joint-venture company with a major China company would be given the project to build awarded the project.

In explaining the reason to award to the consortium then, he said the Penang government had touted BUCG’s financial strength and track-record.

“Apart from multiple job opportunities, the contractors are committed to awarding contracts to Penangites and Malaysians. For the long term, we will also benefit from transfer of technology and technical skills from an award-winning and reputable company,” Huan recalled Chief Minister Lim Guan Eng telling to Penangites then.

He recalled that the Penang government previously said CZBUCG would have the financial strength to undertake the mega project as BUCG would be a 10% shareholder in the JV and was backed by a big paid-up capital.

But three years later, he said it was discovered that BUCG only had a 0.0057% shareholding which the state government cannot explain why.

Today, he said Guan Eng had announced that the state government had agreed to CZBUCG application to kick out BUCG from the tunnel-highway mega project.

He said the excuse given was that BUCG was the main contractor of a project whose subcontractor had an accident where a crane part fell down and killed a lady in Kuala Lumpur two weeks ago.

“Does this indicate that Guan Eng was in full control not only the project but also the company?

“He can dictate who or which company to be awarded or revoked?

“Penangites continued to be played out for fools,” said Huan.

Athi Shankar has been a journalist for past 30 years. He believes that democratic rights come with responsibility.