Loke Asks Wee if Contractor’s Claims That It Was Asked to ‘Subcontract’ KVDT2 to ‘China Company’ True

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Anthony Loke Siew Fook (PH-Seremban) today asked Transport Minister Wee Ka Siong to explain if the Klang Valley Double Tracking 2 (KVDT 2) contract was terminated after the contractor failed to fulfil a request from him (Wee).

Loke was referring to claims made by Dhaya Maju-LTAT Sdn Bhd in a supporting affidavit filed in Kuala Lumpur on Oct 27 in its suit against the government, Wee and two others for terminating the contract.

Reading from court documents in the Dewan Rakyat, Loke said: “On or about April 14, 2020, the plaintiff (Dhaya Maju-LTAT) had a meeting with the second defendant (Wee).

“In this meeting, the plaintiff was asked to subcontract the whole project to a ‘China company’.

“After the plaintiff declined to do so, the meeting ended,” said Loke, who was Wee’s predecessor at the transport ministry.

Loke added that this was a serious allegation against the transport minister.

“It is not a poison pen letter, not mere allegations through WhatsApp. It is a sworn affidavit filed in the Kuala Lumpur court.

“Is it true the company’s contract was terminated because they failed to follow a request made by the transport minister?” Loke asked.

Loke wants Wee to explain if he had said the contract needed to be tendered again as it had been done “through direct negotiations by the Pakatan Harapan coalition” with the contract cost at RM4.4 billion.

“But he has forgotten that the project was actually approved by the earlier (transport) minister Liow Tiong Lai before the 14th general election at RM5.2 billion.”

Dhaya Maju-LTAT has named the Malaysian government as the first defendant, followed by Wee, Opus Consultants (M) Sdn Bhd and Keretapi Tanah Melayu Bhd.

Loke further told the Dewan Rakyat that if the same allegations had been made against any DAP minister or during his own tenure in office, they would have been branded the minister as selling the country’s assets to China at the expense of Bumiputera contractors.

Loke also raised the issue of job losses as the contract termination would lead to 8,512 workers becoming jobless, further affecting the operations of 261 suppliers and subcontractors, mostly comprising Bumiputera companies.

“Where are the fighters of the Malay-Bumiputera in the present government?” he asked.

He further said 24% of the contract had been implemented.

“The termination will cost the government more than RM1 billion. Is there allocation for this in Budget 2021?” he asked.

Dhaya Maju-LTAT had earlier filed the lawsuit to prevent the governing coalition, Perikatan Nasional from terminating its contract.

On Nov 6, Minister in the Prime Minister’s Department Takiyuddin Hassan had said the Cabinet had agreed to seek an out-of-court settlement with Dhaya Maju-LTAT over three separate civil actions, including an injunction application.

The proposed KVDT 2 spans 110km, involving two KTM railway tracks – one from Salak South to Seremban and the other from a point between Kuala Lumpur Sentral and Angkasapuri to Port Klang.

It was previously reported that the transport ministry’s decision to cancel the awarding of the project and reopen it for tender followed Finance Minister Tengku Zafrul Aziz’s revelation that the Pakatan Harapan government had awarded 101 projects through direct negotiation.

In 2017, the Barisan Nasional administration awarded the project to Dhaya Maju-LTAT but the contract was cancelled after the change of government in 2018.

The Pakatan Harapan administration then reappointed Dhaya Maju-LTAT to continue the project after a reduction in its scope and costs. – FMT