PETALING JAYA - The Penang government can no longer deny that the procurement guidelines for the state’s mega project were not met by the special purpose vehicle (SPV), said Datuk Seri Dr Wee Ka Siong.
The MCA deputy president said with the revealing confirmation from the SPV of Consortium Zenith Construction Sdn Bhd (CZC), the state government is now compelled to provide an answer.
“The admission by the SPV that it did not meet the RM381mil minimum paid-up capital but will eventually reach that amount over time is shocking,” he said in a statement yesterday.
On Monday, CZC issued a statement, saying that its paid-up capital has grown to RM26.5mil and that its capital funding has to be increased when the project enters the construction phase.
Dr Wee described the statement as “one of the strangest in living memory” with the SPV admitting that it did not fulfil the minimum paid-up capital at the time of the award of the Request for Proposal and not open tender.
“Even more blatant is that the SPV said their RM26.5mil paid-up capital today, which is more than the RM300,000 when they first won the tender, is sufficient to carry out the RM305mil cost of the reports.
“But the project was awarded based on the financial and technical capabilities to construct and deliver the RM6.34bil construction of the three main roads and undersea tunnel, not only to deliver the reports,” Dr Wee said.
He said the SPV also confirmed that China Railway Construction Corporation Ltd (CRCC) was just one of the many contractors engaged to do the RM305mil reports, contradicting Lim’s statements that the CRCC was the main contractor.
Dr Wee said the SPV also did not deny his findings that CRCC has stopped work a while back due to non-payment since the project was awarded and is no longer involved in the project.
“The SPV also did not refute that its parent company Zenith Construction Sdn Bhd was only an 82-day-old company with a paid-up capital of RM300,000 when they bid for the project,” he said.
Dr Wee added that Chief Minister Lim Guan Eng should explain how a “relatively new small local company” was awarded the RM6.34bil project.