SSER fiasco: Everything done by the book, says Najib

To his recollection, all necessary procedures and laws have been complied with in the negotiation and execution of two multibillion ringgit pipeline projects, former prime minister Najib Abdul Razak said today.

He was responding to Finance Minister Lim Guan Eng's questions on the two projects – namely the Multi-Product Pipeline (MPP) in Malacca, and Trans-Sabah Gas Pipeline (TSGP), worth about RM9.4 billion in total.

Lim had earlier stated that the majority of payments had already been made for the projects, despite little actual work being carried out.

The projects were undertaken by the Finance Ministry-owned Suria Strategic Energy Resources (SSER), which in turn awarded the projects to the China Petroleum Pipeline Bureau (CPPB).

"I note that Lim had stated that all payments were made as per agreement to the CPPB, a fully-owned subsidiary of one of the largest companies in the world, the China state-owned China National Petroleum Corporation – not to any other parties.

"The two pipeline projects which will be of much economic and energy security benefits to Malaysia were negotiated on a government-to-government basis with the People's Republic of China," Najib wrote in a blog post.

Najib, who also held the finance portfolio while in office, added that the MOU for the pipeline projects was witnessed by him and China's Premier Li Keqiang in Beijing on in 2017.

According to Najib, in the same event, China had also committed to importing goods worth US$2 trillion over five years from Malaysia, invest up to US$150 billion in Malaysia, and offer 10,000 places for training and studies in various institutes in China.

"While I welcome open and transparent investigations into these two projects, I believe that great care such be taken when making such serious politically-motivated public allegations involving foreign state-owned companies, as it may have a negative effect on foreign relations and international trade," he said.

At a press conference today, Lim had demanded an explanation from Najib on the “suspicious transactions” surrounding the two pipeline projects.

Although both projects only started in April last year, and are only about 13 percent complete, almost 90 percent of the total project value had been paid out, he revealed.

He also said that SSER, the company tasked to deliver both projects, was linked to the 1MDB scandal. -Mkini