Prime Minister Dr Mahathir Mohamad yesterday clarified that no new tender via direct negotiation was awarded to PDM Builders Sdn Bhd for a construction project worth RM450 million in Kota Bharu, Kelantan.
The RM450 million project mentioned in a letter circulating online is already in progress and the document was just a recommendation to approve cheaper implementation by the award winner, Mahathir explained.
He said the letter was not an order to award the contract directly and was instead a recommendation for approval in the event the company could lower the costs of the project.
“You have seen the note. Because it went viral, you have seen the note I wrote, that this is a continuation of a project that has been given to this party.
“So, what I said there was, if this company is willing to reduce the cost, and if this is a continuation of the previous project…I don’t think that is (a new) direct negotiation,” he said at a press conference in Putrajaya.
On Sunday, Umno supreme council member Mohd Razlan Rafii had published a confidential letter addressed to the Prime Minister’s Office which indicated that the Finance Ministry had conditionally agreed for PDM Builders Sdn Bhd to undertake the building of the new Bangunan Gunasama Persekutuan.
Razlan accused the Pakatan Harapan government of being corrupt by awarding the project directly.
The following day, former prime minister Najib Abdul Razak wrote about it as well, ridiculing Mahathir and Finance Minister Lim Guan Eng for not addressing the issue.
However, checks revealed that the approval for the project began during Najib’s tenure as prime minister and finance minister.
According to the Works Ministry website, preliminary earthworks began in 2016 while the value of the project was revealed by then Kelantan Federal Development Committee chairperson Mustapa Mohamed, in Najib’s presence.
Mahathir, who earlier chaired the 10th meeting of a special cabinet committee on anti-corruption, said he will meet with Lim to discuss the matter.
“Yes, we will talk about it,” he said when quizzed further.
Lim previously said he would assess the supposed Finance Ministry letter before issuing a proper response.
Earlier report: Sept 16, Guan Eng Says Did Not Approve RM450M Kelantan Project, to Discuss with PM