RM1b project and yet no open tender

Jul 15: Even amid the much trumpeted economic transformation programmes, it was revealed today that a RM1 billion rail project for Iskandar had been quietly awarded to an inexperienced company.

Revealing this, DAP's Petaling Jaya Utara MP Tony Pua questioned the awarding of the project to Syarikat Malaysian Steel Works (Masteel) through its subsidiary Metropolitan Commuter Network (MCN), a steel-maker and distribution company.

Pua questioned the capability of Mastell, with earning of RM24 million, to deliver the project with RM700 million soft loan from the government, and added that the project also covered a 37-year commuter service concession for MCN.

The rail system by Mastell linking Iskandar in Johor to Singapore will have 20 stations including Kulai, Gelang Patah, Nusajaya, Johor Baharu and Masai.

The deal, said Pua, proved that prime minister Najib Razak had reneged on his promise for open tender for government contracts to promote transparency and combating corruption.

"Why not through an open tender for a project of this scale?" he asked.
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