Guan Eng slams Transport Minister for copying PH plan for KVDT2 after ‘overpriced’ claims

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Former finance minister Lim Guan Eng has criticised Transport Minister Wee Ka Siong for making “false claims” concerning phase two of the Klang Valley Double Tracking (KVDT2) project.

Lim said Wee had condemned the Pakatan Harapan government’s efforts to lower the cost of the project but had appointed the same contractor chosen by the former administration to complete the project at the same price.

He said Wee had previously complained that the project was still overpriced after the cost was reduced from RM5.2 billon to RM4.475 billion.

“Wee had re-opened the tender for the project because he claimed that the price tag of RM4,475 billion was too expensive,” said Lim in a statement today.

However, Lim said PH was vindicated on August 3 when Wee, in a written parliamentary reply to Anthony Loke, had stated that the government was proceeding with the project with the same contractor, Dhaya Maju LTAT Sdn Bhd, at the same price of RM4,475 billion.

“The contractor was issued a letter of award on July 29,” Lim said.

The Barisan Nasional administration awarded the KVDT2 project to Dhaya Maju at the price of RM5.2 billion on April 5, 2018, a day before then prime minister Najib Razak dissolved parliament.

Former MCA president Liow Tiong Lai was then transport minister.

Lim said the PH administration that was elected afterwards was obliged to honour the contract or pay RM3 billion in compensation.

He said the government had successfully negotiated with the contractor to lower the price tag to RM4.475 billion.

Following yet another change of government in in February 2020, new transport minister Wee tried to call a new open tender for the project

However, Dhaya Maju, a joint-venture between Dhaya Maju Infrastructure (Asia) Sdn Bhd and the Armed Forces Fund Board (LTAT), had sued the government for breach of contract.

The Transport Ministry backed down and agreed to allow the same contractor to continue work on the project for RM4.475 billion.

“There is no sense of remorse or explanation from Wee about his initial false claims and lies that the new price tag of RM4.475 billion was still too expensive despite a RM725 million reduction.

“Wee should resign for failing to prove his claim against Loke that PH’s reduction in the cost of the KVDT2 project still made the project over-priced,” said Lim. – TMI