MP demands review of sand dredging contract

 

Seremban MP Anthony Loke has urged the government to review a dredging project awarded to a subsidiary of Inai Kiara Sdn Bhd (IKSB).

Loke (above) said a search conducted on Sept 30 last year through the Insolvency Department showed that IKSB was declared insolvent by the courts on July 6, 2021, upon an application by the Inland Revenue Board.

Yet, the cabinet appointed the company to undertake dredging and reclamation works the next day (July 7, 2021), which was confirmed by the Transport Ministry recently.

The contract is for 15 years and is worth RM2.2 billion.

Loke said a review was necessary as it was evident that due diligence was not performed before the cabinet's decision and the company's financial position was in doubt.

"I am confident there are many other companies that can do the job," he added.

The former transport minister said he will raise the issue again when the minister in charge of the Economic Performance Unit, Mustapa Mohamad, conducts his winding-up speech in the Dewan Rakyat tomorrow.

On Monday, Loke questioned Putrajaya over the contract in the Dewan Rakyat while alleging that the company had several unfinished jobs.

Transport Minister Wee Ka Siong, who was minister at the time the deal was approved, argued that IKSB has a track record of 15 years, involving over 200 projects.

However, Wee claimed that the deal was still not finalised.

IKSB says financial woes resolved

A government contractor that a lawmaker flagged as allegedly bankrupt said its financial troubles have long been over.

Yesterday, IKSB, in a statement, said that the company was currently solvent, and its financial problems occurred in 2016 and were resolved the following year.

Independent checks with the Insolvency Department on March 14 revealed that IKSB had "not wound up". However, its subsidiary Integrated Marine Works Sdn Bhd's status was "stay order granted".

Integrated Marine Works was the company that was given the dredging contract by the Transport Ministry.

IKSB's chief executive officer Quzaim Mohamad Guljar Mohamad said both companies were solvent and therefore capable of undertaking all their projects.- Mkini