Kumpulan Europlus Bhd (KEuro) president Chan Ah Chye will soon become "an instant multi-millionaire" when he disposes of his shares in the company - recently awarded the RM7.07 billion West Coast Expressway (WCE) project.
Chan's 27.6 percent holding in KEuro would rake in approximately RM231 million, 30 percent above the current market price, DAP Petaling Jaya Utara MP Tony Pua said today, citing "unconfirmed information".
Chan's retirement on April 3 "came a shock" said Pua, because "it clearly signalled that he would soon be receiving a 'golden handshake' for his stake in the company", which has been valued at RM178.1 million.
"There is no conceivable reason for him to resign from all positions in the company if he is to maintain his shareholdings," Pua said.
KEuro in announcing Chan’s retirement stated: “After working on the West Coast Expressway project for the last 16 years, and now that the project has finally been awarded to Europlus' 80 percent owned subsidiary West Coast Expressway Sdn Bhd, it is his desire to spend more time with his family and do things he had no time to do for many years.”Chan's 27.6 percent holding in KEuro would rake in approximately RM231 million, 30 percent above the current market price, DAP Petaling Jaya Utara MP Tony Pua said today, citing "unconfirmed information".Chan's retirement on April 3 "came a shock" said Pua, because "it clearly signalled that he would soon be receiving a 'golden handshake' for his stake in the company", which has been valued at RM178.1 million.
"There is no conceivable reason for him to resign from all positions in the company if he is to maintain his shareholdings," Pua said.
Not in public interest
The 316km highway project from Banting to Taiping has come under heavy criticisms as Attorney-General Abdul Gani Patail had rejected signing the legal papers required to settle the deal as the terms of agreement set were not in public interest.
The Malay Mail had previously reported that Abdul Gani opined that the terms “heavily favoured” WCE.
The concessionaire had bagged the contract via direct negotiation in 2002, and announced in 2007 that it would only cost RM3.015 billion to construct the highway and that the concession period was for 33 years.
The terms were however, renegotiated as WCE was not able to fulfil the conditions.
“The result was an increase of 134.5 percent from the original RM3 billion and an extension of the concession period from 33 to 60 years.
“The soft loan and interest subsidies on commercial loans were all new sweeteners added to the agreement terms to ensure a lucrative project for the concessionaire,” said Pua.
When the contract was finalised in January, KEuro’s stock price rose from 88 sen in September last year to RM1.36, and it is trading at RM1.24 as of today, he said.
“The government has once again chosen the fastest route to make instant multi-millionaires by awarding unbelievably lucrative concessions to its favourite business cronies.
“By just securing the contract, Chan has seen his wealth rise by leaps and bounds with an immediate exit in less than three months after the award and before the construction works even commenced,” Pua exclaimed.
He urged the government to withdraw the concession awarded to WCE and call for new open bids for the project to ensure transparency and lowest construction prices.
“Only then will the interest of taxpayers be protected and not fleeced like in all previous highway and privatisation contracts,” said Pua.
The Malay Mail had previously reported that Abdul Gani opined that the terms “heavily favoured” WCE.
The concessionaire had bagged the contract via direct negotiation in 2002, and announced in 2007 that it would only cost RM3.015 billion to construct the highway and that the concession period was for 33 years.
The terms were however, renegotiated as WCE was not able to fulfil the conditions.
“The result was an increase of 134.5 percent from the original RM3 billion and an extension of the concession period from 33 to 60 years.
“The soft loan and interest subsidies on commercial loans were all new sweeteners added to the agreement terms to ensure a lucrative project for the concessionaire,” said Pua.
When the contract was finalised in January, KEuro’s stock price rose from 88 sen in September last year to RM1.36, and it is trading at RM1.24 as of today, he said.
“The government has once again chosen the fastest route to make instant multi-millionaires by awarding unbelievably lucrative concessions to its favourite business cronies.
“By just securing the contract, Chan has seen his wealth rise by leaps and bounds with an immediate exit in less than three months after the award and before the construction works even commenced,” Pua exclaimed.
He urged the government to withdraw the concession awarded to WCE and call for new open bids for the project to ensure transparency and lowest construction prices.
“Only then will the interest of taxpayers be protected and not fleeced like in all previous highway and privatisation contracts,” said Pua.
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