I make reference to a report in www.theedgemalaysia.com on 19 October 2011 on an award for the construction of a new women and children’s hospital to a little known company Najcom Sdn Bhd and its joint-venture partner UEM Group Berhad. The construction of the hospital (expected to cost in between RM700 million to RM900 million) has been included in the recently announced 2012 budget.
Najcom Sdn Bhd is a comparatively small Penang-based construction company owned by individuals closely connected to Barisan Nasional. Its biggest project to date is the construction of the Malaysian Institute of Pharmaceutical and Nutraceutical in USM for RM80 million, awarded in 2008. Apart from this, Najcom Sdn Bhd’s projects are mostly small projects costing below RM10 million; hardly a suitable company by experience and size to carry out a national project costing nearly a RM1 billion.
UEM Group Berhad has been closely linked to Umno establishment all these years and was the beneficiary of the latter’s largesse.
Therefore, it is of great concern that yet another expensive public project has been awarded to closely connected companies in secrecy under the guise of private finance initiatives.
There is no doubt that the government will be involved in the financing of the project in one way or another – either through government guarantees of the loans to be raised by this little known company or awards of government assets in kind as a consideration. Barisan Nasional has been employing this back door financing method in many public projects announced since Dato’ Seri Najib Tun Razak took over in 2009, including the RM55 billion funding of the MRT and the redevelopment of government lands in Sungai Buloh and Sungai Besi by private entities.
It is only right that the public knows the full details of the award to Najcom Sdn Bhd and UEM Group Berhad. This includes financing methods proposed, comparison of values accrued to the government under different proposals by other bidders and the main consideration to mitigate Najcom Sdn Bhd’ lack of experience and financial capabilities to carry out such a massive project.
The country cannot afford yet another failed public project in the future that saddles it with a massive debt especially when Barisan Nasional is about to breach the national debt ceiling imposed by Parliament.
This latest questionable award of a flagship project under the 2012 budget highlights Barisan Nasional’s lack of political will to institute good governance and relegated the budget to become just a list of expensive projects open for massive abuse and corruption.
I call for full accountability on the part of government; if only to demonstrate that there is still a shred of decency and good governance in force under Dato’ Seri Najib Tun Razak.
SAIFUDDIN NASUTION ISMAIL
AHLI PARLIMEN MACHANG
20 OCTOBER 2011