by Parliamentary Opposition Leader, DAP Secretary-General and MP for Tanjung, Lim Kit Siang, in Petaling Jaya on Sunday, 8th February, 1992:
DAP calls for a Royal Commission of Inquiry into the award of government tenders and privatisation by both the Federal and State Governments to eliminate corruption, abuses of power and all forms of malpractices
The DAP takes a very serious view of the complaint by the Trengganu branch of the Malaysian Bumiputra Contractors’ Association about hanky-panky in the award of 15 tenders worth $106.5 million by the Trengganu State Government to Seri Terukon Sdn. Bhd.
The branch claimed that the cost of nine tender projects recently completely had soared from its original price of $67.875 million to $86.7 million due to excessive claims for “additional work” although the Public Works Department’s estimates for their costs were only $59.38 million.
The projects involved the construction of the Istana Trengganu ($17.2 million), museum infrstructure ($2.7 million), roads leading to the Sultan Mahmud bridge ($7.8 million), Jalan Renik-Jabi ($6.3 million), royal mausoleum ($1.8 million), new fence surrounding Istana Maziah ($1.1 million), State Musuem ($48.4 million) and construction of the roof and a guard house at Istana Badariah ($1.1 million).
In a memorandum to the Prime Minister, Datuk Seri Dr. Mahathir Mohamed, the branch alleged that tenders for the construction of Istana Terengganu, the royal mausoleum, the Istana Maziah’s fence, Kuala Ibai floating mosque and the guard house at Istana Badariah were awarded through direct negotiations at a rate between 80 per cent and 100 per cent higher than market rate.
The branch has further alleged that six other projects under construction have been awarded at a cost of $38.23 million compared to PWD’s estimates of $32.6 million. These projects are the Dungun District Office, Kuala Terengganu bus station, Kuala Ibai floating mosque, Guntung-Sungai Tong road, resurfacing of a road in Kuala Terengganu and the construction of a new fence at Istana Badariah.
Other allegations that have been made by the branch in its memorandum to the Prime Minister include:
• Seri Terukon will be awarded another five contracts worth $5.7 million through direct negotiations for the construction of the Istana Maziah banquet hall, the roof of a palace, an extension of the office of the Sultan’s private secretary, staff quarters and electrical work at Istana Badariah; and
• The State Government had given priority to Seri Terukon in the privatisation of the Besutsuda sawmill which owns 14,800 hectares of logging concessions. The $15 million sawmill was taken over by Seri Terukon at the cost of $6.8 million.
The DAP supports all efforts to eliminate corruption, abuses of power and all forms of hanky-panky in the award of government tenders and privatisation, whether by the Trengganu or other State and Federal Governments. In fact, the complaints that have been made by the Trengganu branch of the Malaysian Bumiputra Contractors’ Association could equally apply to other state governments as well as the Federal Government.
Malaysians regardless of race should unite as one to oppose all forms of corruption, abuses of power and malpractices
For this reason, DAP calls on the Prime Minister, Datuk Seri Dr. Mahathir Mohamed, to set up a Royal Commission of Inquiry into the award of tenders and privatisation by both the Federal and State Governments to eliminate corruption, abuses of power and all forms of malpractices.
While DAP will support the Trengganu branch of the Malaysian Bumiputra Contractors’ Association in its efforts to eliminate corruption, abuses of power and malpractices in the award of government tenders and privatisation, it is most regrettable that the branch had also used the communal angle to state its opposition to the award of contracts to Seri Terukon Sdn. Bhd. on the ground that 49 per cent of its equity is owned by non-bumiputeras.
Let all Malaysians oppose as one all forms of corruption, abuses of power and malpractices regardless of races; and not condone corruption, abuse of power and malpractices if they are committed by Malaysians of one’s own race or community.