Pan Borneo Highway delayed due to sheer mismanagement of tender, incompetent contractors, leakages
26 Sept 2021
There is a delay in the construction of the Pan Borneo Highway in Sabah, and Bung Moktar accused that the delay was due to the previous Pakatan Harapan federal government’s move to terminate the project delivery partner (PDP) without first securing Sukuk or bonds and causing difficulties in implementing the project, especially in terms of financing.
Bung, once again, is making false accusations at Pakatan Harapan to deflect his own Government's incompetence. The termination of the PDP model has little or nothing to do with the delay of the construction of the Pan Borneo Highway in Sabah. The lack of additional financing via bond issuances is completely unrelated to the termination of the PDP. If the PN or Ismail Sabri Federal Government is refusing to raise funds for the project, then blame PN or Ismail Sabri. Do not cover up by blaming PH.
For the cause of the delay, all we need to do is to refer to the Auditor General Report, more particularly “CMD 43/2020 - Laporan Ketua Audit Negara 2019 Siri 1 Aktitivi Kementerian/Jabatan Kerajaan Persekutuan dan Badan-Badan Berkanun Persekutuan” which can be easily downloaded from the Parliament’s official website:
https://www.parlimen.gov.my/ipms/eps/2020-12-10/CMD.43.2020%20-%20CMD%2043.2020.pdf
Refer to Chapter 5 on the audit on Kementerian Kerja Raya (KKR) dan Kementerian Pembangunan Infrastruktur Sabah, which clearly states:
“…kontraktor yang tidak berkeupayaan telah dipilih, tindakan tidak diambil walaupun kontraktor tidak mematuhi syarat kontrak, terdapat isu pengambilan balik tanah tidak selesai dan pemantauan kurang berkesan.
[…]
Prestasi fizikal keseluruhan projek LPBS bagi 11 WP (pakej kerja) semasa tarikh penamatan perkhidmatan PDP pada 21 Sept 2019 adalah 12.8% berbanding 41.9% yang dirancang, iaitu lewat 29.1%,”
Bung Mokhtar's accusation on the change of financing of the Pan Borneo Highway Sabah leading to delay is, in fact, not new. A similar accusation had been made by Najib Razak during Kimanis By-Election when he had alleged that the cancellation of PDP model is tantamount to “project abandoned”.
The then Chief Minister of Sabah, Shafie Apdal, has made it clear, that the cancellation of PDP model in Pan Borneo Highway Sabah was made at the request of the Sabah Government with the objective to end leakages. Shafie also said that the decision to cancel the PDP was also based on concerns that the consultancy firm was run by a political party member. (https://www.nst.com.my/news/nation/2020/01/553609/najibs-claim-pan-borneo-highway-rubbished)
PDP partners earn a certain percentage of a project’s cost but do not have to bear the full brunt of cost overruns and delays. This compares with the turnkey model, in which the project cost is fixed from the beginning.
In the case of the Pan Borneo Highway, the federal government has to pay 5.5% of the total project cost to PDP partner. Why should we pay for this extra 5.5%? In fact, JKR can play the role to become the project consultant and manage the project. Why should we appoint another PDP company which has a link with politicians?
After termination of the PDP agreement, the works ministry will take over the project and turnkey contractors will be hired to complete the remaining construction works for the 2,324km Pan Borneo Highway project.
If Bung thinks that the RM1 billion a year from the federal government is insufficient (which I would totally agree with him) and at this rate the Pan Borneo project to not be completed even after 45 years, then the question is why not get the federal government to increase it according to demand?
The PH federal government was more than willing to raise funds for the Pan Borneo Highway and there was never a complaint about the lack of funds. PN has taken over the Federal and Sabah governments since 2020. How come the federal government is no longer willing to invest more in Sabah?
Democratic Action Party (DAP) Sabah Secretary
Member of Parliament for P. 172 Kota Kinabalu
Chan Foong Hin
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