Minister denies asking KVDT2 to be subcontracted to China company

 

Transport Minister Wee Ka Siong has denied allegations that he told Dhaya Maju-LTAT Sdn Bhd - the original contractor for the Klang Valley Double Tracking 2 (KVDT2) - to subcontract the entire project to a China company.

He was referring to the allegations made by DM-LTAT CEO Mohamed Razeek Mohd Hussain Maricar in a court document that was cited by Seremban MP Anthony Loke in the Dewan Rakyat today.

"The so-called revelations by YB Anthony Loke are just some baseless accusations by DM-LTAT.

"After I received the affidavit, I immediately sought legal advice and had been advised to clear my name through the legal process, without announcing it to the public to prevent the case from being politicised," said Wee.

Loke, in his budget debate today, cited the alleged request by Wee that was part of a supporting affidavit filed by Mohamed Razeek at the High Court in Kuala Lumpur on Oct 27.

The affidavit was filed in support of DM-LTAT's application to seek an injunction against the government's notice to terminate its contract and retender the railway track restoration project.

Having commenced his own legal action, Wee said additional measures were also taken in anticipation that DM-LTAT would go through different channels, including politicians, to "sensationalise" the matter.

"I informed the cabinet on Nov 6 about this issue and the officer who was with me at the meeting with the company has lodged a police report, to strongly deny any defamatory allegations made by the company.

"My conscience is clear and I have nothing to be afraid of," stressed Wee who also challenged Loke to repeat the allegations by DM-LTAT outside of the Dewan Rakyat, where he would not be protected by parliamentary privilege.

"As the former minister of transport, clearly YB Anthony Loke is aware of the discrepancies surrounding this project.

"I advise him to speak with his conscience and stop being the spokesperson for the company," Wee said.

The MCA president, who is currently in a hospital recuperating from spinal surgery, said he would address Loke's "baseless allegation" on the impact of KDVT2's termination on bumiputera companies and contractors after he is discharged from the hospital.

Aside from the court affidavit, Loke said today that the contract's termination would lead to job losses among 8,512 workers and affect the operations of 261 suppliers and sub-contractors, mostly comprising bumiputera companies.

The original KVDT2 project spans 110km, involving two KTM railway tracks – one from Salak South to Seremban and the other from a point between Kuala Lumpur Sentral and Angkasapuri to Port Klang.

The BN-era project was halted and renegotiated via direct tender with DM-LTAT during Harapan's time, at a lower cost and a shorter completion time of five years for more than double the scope of work covering 265km of railway tracks.

Wee announced on Aug 28 that the government would reopen bidding for the KVDT2 project based on the results of a study that found the cost of the renegotiated project during Harapan's time was still overpriced.

He reportedly said the Harapan government had, on July 5, 2019, decided to continue the project with DM-LTAT at a 15 percent reduced cost, from RM5.265 billion to RM4.475 billion - a reduction of RM790 million.

However, Wee said, Harapan's decision purportedly did not take into account the findings of a Transport Ministry-commissioned Professional Review Report done in October 2018, which concluded that the project actually costs only RM3.398 billion based on DM-LTAT's original scope of work. - Mkini