Jomo: ECRL a scam to cover up 1MDB scandal

The East Coast Rail Link (ECRL) project is a dishonest scheme to cover up the 1MDB scandal, according to economist Jomo Kwame Sundaram.

"ECRL and the two (Suria Strategic Energy Resources Sdn Bhd) pipeline projects are scams to cover up the 1MDB scam," he told a dialogue with the media in Kuala Lumpur today.

Jomo said that as a member of the Council of Eminent Persons, he had learned that the situation surrounding the China-backed rail project was "really bad".

However, he declined to comment further, citing considerations such as diplomacy and financial losses.

The ECRL fell under the spotlight again after news surfaced that the government was planning to cancel the project.

Prime Minister Dr Mahathir Mohamad said yesterday that the country would be impoverished if the project was not cancelled.

Mahathir also said that the compensation to be paid for cancelling the project was far smaller than the debt Malaysia would bear if the project proceeded.

Critics of the ECRL claim that the project, valued at RM55 billion by the previous Najib Abdul Razak administration, was part of a bailout plan to cover-up 1MDB's financial losses.

Najib and Beijing have denied such speculation.

Jomo also rubbished the notion that scrapping the ECRL would be a blow to development in the East Coast of Peninsular Malaysia.

"This is a lie by those who want to save the project," he told reporters after the dialogue.

He said there were other things that needed to be developed in the East Coast states like Kelantan, such as water supply, sanitation and flood mitigation.

Ultimately, Jomo said, the government should be given space to deal with the ECRL as there were many considerations to be made. - Mkini