Gamuda-MMC shots back at Tony Pua over MRT 2 allegations

NST Sun, Dec 12, 2021 12:16pm - 2 years View Original


KUALA LUMPUR: The MMC-Gamuda consortium has shot back at the statements by Damansara Member of Parliament Tony Pua in his public exchange with former two-time prime minister Tun Dr Mahathir Mohamad in relation to the Klang Valley Mass Rapid Transit Line 2 (MRT 2) project.

Gamuda Engineering Sdn Bhd managing director Justin Chin Jing Ho said Pua's allegations against MMC Gamuda in the second part of his response to Dr Mahathir on December 8 this year were "unfounded and libellous".

"Your misrepresentation of events and portrayal of the 'truth' in numerous instances in your statement were disingenuous at best. Our response will be brief and is intended to set the record straight, presenting the facts for all to examine," Chin said in a statement last Friday. 

Gamuda Engineering is a subsidiary of local engineering and construction giant Gamuda Bhd, which formed MMC-Gamuda with MMC Corp Bhd for the MRT and MRT 2 project.

Pua recalled an open letter he penned in October 2018 to defend himself from accusations from Dr Mahathir in his book published by MalaysiaNow recently,

The letter was addressed to the directors of MMC-Gamuda with regard to the MRT 2 project. At the time, Pua was former finance minister Lim Guan Eng's political secretary.

Among allegations made by Pua against MMC-Gamuda were the nature of the RM8.82 billion that was cut from the project and countless trips made by consortium directors to lobby Dr Mahathir.

Chin said the RM8.82 billion cost savings were achieved by building MRT2 progressively to meet current demand, while providing space for upgrade for future needs.

"Among the factors behind the cost savings were conversion to turnkey model to save on project delivery partner fees, rationalisation in the allocation of reimbursables, contingencies and provisional sums, the deferment of the construction of Bandar Malaysia stations, more modest architectural finishing and scope rationalisation for electrical and mechanical system works," he added.

Chin said the appointed independent engineering consultant hired by Pua had no relevant track record of comparable complex multidisciplinary mega infrastructure projects, particularly for underground tunnelling works and systems.

"Put simply, they would not even be prequalified to tender as the design consultant for a project of this scale and complexity anywhere in the world but their study was used to guide your assumptions of 'very significant savings to be achieved without sacrificing the functionality, viability and operations of the project'," he said.

Chin said MMC-Gamuda, together with MRT Corp Bhd, had recommended at the time to appoint an internationally qualified consultant of his own choosing with a respectable and relevant track record to conduct a fair, informed review of the project cost but Pua chose to disregard this for reasons unknown to them or to the public.

Meanwhile, Chin said Pua's claim that MMC-Gamuda had lobbied Dr Mahathir extensively in 2018, amid Putrajaya's efforts to cut down costs on the MRT2 project, was fictitious.

"Our arguments presented to him in writing were exactly as set forth here which were also presented to the Ministry of Finance and your appointed independent engineering consultant.

This included all of MMC-Gamuda technical rebuttals, which MRT Corp jointly concurred with, to the "potential savings" opined by the appointed independent engineering consultant, he added.

"We reiterate that your libellous allegations against MMC Gamuda were uncalled for and we ask that you remain professional in any future public exchanges between your good self and Dr Mahathir. We do not appreciate your playing to the gallery and grandstanding at our organisation's expense," Chin said.

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