Monday, November 23, 2009

RM628 million for RM15 billion?

Another sugar coated deal but at whose expense?

Naza-TTDI, a unit of the diversified Naza group, will build the expo centre on a 13.1-acre site in Jalan Duta in exchange for 65 acres of state land at RM226 per square feet (psf) although the market value of the land could reach RM1.5 billion. The entire project will have a gross development value of RM15 billion, the developers said last week.

The DAP has urged the Najib administration to have an open tender for the proposed Matrade expo centre in Jalan Duta after the controversial RM628 million project was given to Naza TTDI in a building-for-land deal.

Tony Pua said the prime minister should also declassify all ministerial papers relating to the project and table it in Parliament to show necessary due diligence has been done to ensure costs and profits were not inflated if they persisted with Naza TTDI as the contractor.

He added that the government is planning on a similar privatisation project which will involve 6.5 million sq ft of land in Jalan Cochrane for an MRCB joint venture worth an estimated gross development value of RM15 billion.

Ironically, I was asked by a journalist if the Iskandar development region is facing a crisis with the current management change.

I responded that it might be a huge challenge for the project to achieve measurable success if the government does not change the way it deals with the business sector.

Direct negotiated projects which favour certain companies like the ones mentioned above do not help to enhance foreign investors confidence in Malaysia. It confirms their fear that the public procurement process is not transparent and open.

The government still favour some companies over others. I support the Dap call to have an open tender for the project. An open tender system is the best way to reverse investors' perception of the country. It helps to ensure that a project is awarded to the best contractor.

A lack of transparency does not help us to become a competitive economy.

This is the attitude we see in the government and public sector today. It is impossible that these policy makers did not see the negative consequence. It is just that THEY DO NOT CARE.

This "I don't care" attitude is going to bring all of us down. I hope Malaysians will not display the same kind of attitude by tolerating corruption, nepotism and racism in their politics.

Kudos to Tony and DAP for doing a good job. I hope the same kind of attitude can be repeated in Penang, a state government led by the party.


David Lee said... about the flood in the east coast of malaysia and those poor families have to endure.......i don't know how many years already.....any comments???....anybody????

Anonymous said...

You must always remember.In Malaysian politics,the group of new administrators that have been "voted into office" expects 'entitlements' for himself/herself and all their kakis.This RM15b is not the end yet.More to come in the pipeline.
What transparency we are talking about?

Anonymous said...

To think that changes are coming from the Najid administration is like asking the leopard to change its spots.

This is a glaring trend passed down 52 years ago.

Will this turn into another 'pftz'?
Where are the Taxpayers United?

Anonymous said...

Yes David...,

I thought every budget thru the years, there were millions allocated for the flooding problems in Malaysia.
After so many years, it should be resolved already...

But why are we still having flooding problems year after year..???
"HOW" has the money been spent..? "What" has been done..?? Any transparancy..???

Who's gonna compensate these poor families becoz of our goverment's "I don't care" attitude...?????

My answer is as good as yours...!!

As for these tenders, we can all shout till the cows come home, it won't be open to people like you & me......

Only certain people "can" be rich..!!!

Anonymous said...

RM628m for RM15bn is considered a bad deal.

Previously the lucky company could have sealed the deal of RM628K for RM15bn!

Anyway, Naza-TTDI needs to obtain the funding for Naza when the domestic auto market is fully liberalised :)

Anonymous said...

What still clueless?
When was any project pursued if no sweet deals for UMNO is going to happen?
Why talk about economic benefit for people except if by chance there are. Look at the many badly constructed buildings like hospitals or schools, many even in the wrong places and still not used!
So another piece of state land to be pirated away to meet the monetary greeds of the UMNO parasites, so what's new?

Rakyat Voice said...

The question is once the land is alienated to the contractor(Naza)and if they failed to deliver the expo complex to the govt,what course of action can d govt take against the contractor? My view is to have open tender for d construction of complex and open tender for the sale of the land.What so difficult about that?

Anonymous said...

It looks like a desperate 'make all the hay you can while the sun is still shining' attitude. There seem to be no fear at all even after so many scandals was exposed. RM15Billion is going to beat even 'the mother of all scandals' by RM3 billion. Those in authority do not fear the people at all or even God. We the people are suffering now and will even suffers more in years to come, if corruption in society is not controlled.
Sore Tax Payer.

telur dua said...

Fair exchange is no robbery, but this deal doesn't sound or look like a fair exchange to me.

Ada udang di sebalik batu?

Anonymous said...

hey 1Malaysia way of doing biz.

whats the dif?

look for the STAR to write a big cover up story.

Anonymous said...

Tony has to come from PJ to reveal this. What are the 10 out of 11 KL MPs doing? Bunch of dysfunctional KL MPs. I'll never vote again to just increase the no. of MPs in Parliament instead for someone who can bring good to the people of KL.

Anonymous said...

It's just to reimburse Naza for the $ they are spending for F1