Excerpt of speech by Lim Kit Siang on Penang Development Estimates in Penang Assembly on 26.12.1986
Corruption in the Butterworth multi-million dollar Bukit Mertajam Metropolitan Sewerage Project contract of MPSP
Call for public inquiry into serious allegations of corruption in the multi-million dollar Butterworth /Bukit Mertajam Metropolitan Sewerage Project contract of MPPS
In his speech introducing the Development Estimates on Wednesday, the Chief Minister, Dr. Lim Chong Eu, said 1987 is a critical and challenging year and to survive through this period of economic recession, our people must firmly adhere to the tenets of the Rukunegara in serving the national interest.
The Rukunegara calls for a clean, honest and moral society, where corruption in all forms are stamped out. But this is not the case, for the authorities seem to be very reluctant to take firm and effective steps to deal with all allegations of corruption.
I will give one example. For two years, the authorities have received detailed information supporting allegations of corruption in the multi-million dollar Butterworth /Bukit Mertajam Metropolitan Sewerage Project contract of majlis Perbandaran Seberang Perai.
Seven instances of corruption were listed out, involving sums exceeding $500,000, in the construction project of pumpstations, treatment plants and ancillary works at Butterworth and Bukit Mertajam.
The allegations of corruption involve the main Japanese consulting firm (Perunding utama dalam pembinaan) is Nihom Suido Consultants Sdn. Bhd., dan sekutu tempatny ialsh minconsult Sdn. Bhd. Yang menggantikan Ooi Teik Boon and Associates.
Kontact ini dilaksanakan oleh syarikat Jepun juga yang bername C Itoh-Fudo Consortium. Syarikat ini terlibat dalam Contract 102, ini adalah sebahagian daripada tiga kontrak yang berkaitan dengan projek pembinaan sewerage Butterworth –Bukit Mertajam.
In one of the seven allegations of corrupt practices, the authorities were informed that the Japanese contractor varied from the originally tendered terms of ‘rock rip-rap’ to asphalt surfacing to sloped area of embarkments at Mak Mandin and Sungei Nyor Treatment Ponds, allowing the contractor to overclaim $231,750 from this one item alone.
The MPSP Councillors should explain why they allow the Japanese Consultants and Contractors to make such a fraudulent overclaim. What is deplorable is that the Japanese Consultants had boasted that as both the consultants and contractors of the MPSP Sewerage Project were Japanese, no authorities would dare to investigate the matter – referring to the Barisan Nasional’s ‘Look East’ Policy.
Can the State Executive Councilor in charge of Local Government, Khoo Kay Por, give the Assembly and the people a full and satisfactory explanation as to why no investigations were conducted into the allegations or corrupt practices by the Japanese firms in the MPPS Sewerage Project?
The DAP calls for a public inquiry to be established to investigate into these serious allegations of corrupt and improper practices, which is a best as to whether the Gerakan State Government of Penang is prepared to take an uncompromising stand against all forms of corrupt practices, abuse of power and malpractices.