FISHY DENIALS How can it be true Najib didn't award George Kent the Ampang LRT deal?

George Kent Bhd, the company accused of being favoured by Prime Minister Najib Razak for the billion-ringgit Ampang LRT extension contract has denied that it has already won the bid. But why only deny it now?

Najib is at it again; being foolish, stubborn and impertinent. But the damage is done. How can the public relations department in the PM's Office be so insensitive? This shows either the people in charge are incompetent or they were not able to act sooner because the project was really awarded to George Kent as speculated in the press and by PKR's Rafizi Ramli.

Najib's minders may have had to undo certain things or concoct some form of credible explanation to distance their boss from this ticking time-bomb. Actually, the same situation occurred when Najib gave the sports gaming license to Vincent Tan's Ascot Sports Sdn Bhd .

Verbal denial is not enough

Since Rafizi has offered documented proof, then Najib should immediately show some black-and-white as well to support his denials. How can a verbal denial counter physical evidence - more so when the words are uttered by people who can be deemed to be questionable because of their past dealings?

Najib for one has often been called a “pathological liar” by many of his critics. If it is true that the project had not been awarded yet to anybody, Najib should simply come forward and declare it in a press statement. He should come clean, but instead, he has asked his ex-school mate Tan Kay Hock to do it. Why must Najib be so reluctant to up the ante against Rafizi especially when his reputation is at stake?

When Najib personally meddled in the tender,as claimed by Rafizi, it is an irresponsible act of the highest order. This has a lot of negative implications for everyone involved - from the Finance ministry especially its procurement unit to investors and the country as a whole.

Negative impact

Those entrusted to undertake the responsibility must be very frustrated because they have done their best and acted with honesty and accountability. Yet, Najib simply whisked in, did what he wished - even things that he should not do - and then whisked out, leaving the baby for the rest of the ministry and the UMNO-BN to hold.

The efforts of so many people have gone to waste as a result. The fees paid to the independent consultant to evaluate the project's viability is wasted too. Just imagine how much is wasted when the normal rate allowed for consultations fees is from 5 to 10 % (total for several scopes) of the billion-ringgit cost.

Also affected are those bidding for the huge government project - they will be discouraged and demoralized. Those who still participate in Malaysian government tenders will do so with full cynicism in their hearts because they know that whatever bid they make won't matter. Najib will have the final say and he is answerable to NOBODY!

Obviously this augurs poorly for Malaysia's economic future and will further frighten away foreign direct investments. This will inevitably lead to huge price variations within the construction industry itself. Manipulating contract prices will become the norm, with the pool of bidders comprising of just the elite few - Najib and UMNO cronies.

Same disrespect for due process when selecting NFC

UMNO used this modus operandi when they awarded the failed RM250 million NFC project to the family of former Women's minister Shahrizat Jalil, ignoring an experienced Australian bidder and several local partiesl of whom had proven track record and were still profitable. Instead of learning the lessons of the NFC debacle, Najib is pulling the same trick in the Ampang LRT project. So, no wonder he supports Shahrizat until now if not to the very 'end'.

This will have an impact in the financial markets too. The contractors will need to source for money to finance the project. Just imagine with George Kent not technically qualified, the banks will have to take a huge risk in providing the loans. If the local banks have limited funds, they will need to raise the money and may try to get some syndicated loans.

Bankers are not stupid, they know how many failed projects have been bailed out by the UMNO-BN. The financial markets too have to be very cautious as this could create a mini credit crunch.

Morals not part of the UMNO DNA

Even if George Kent sub-contracts the project to reliable parties, then the project might as well be given direct to these 3rd parties instead of through a middleman like George Kent.

Such a move could save millions which can be used to alleviate the PTPTN or student loan problems, for example.

Indeed, the award of the Ampang LRT extension project to George Kent Bhd has a lot of implications. It is not only kicking up a huge negative impact financially and economically, it is morally wrong.

Unfortunately for Malaysians, Najib and UMNO-BN may not have such a word in their dictionary!

Malaysia Chronicle