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See-To on why Penang had to hire engineering firm for RM11.2 mil

He says state needed third party to oversee deal as environmental study was given to the same people tasked with building tunnel.

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GEORGE TOWN: BN has come up with a theory on why the state government had to pay RM11.2 million to an engineering firm to check how much the Penang government should pay the contractors of the undersea tunnel and three roads project.

BN strategic communications deputy director Eric See-To said the Penang government had to hire a third party company to oversee it as the environmental study into the project was given to the same people tasked with building the project.

“The reason why another company had to be appointed and paid this sum (RM11.2 million) to check is because, for some reason, the Penang government awarded the same company, which is contracted to build the three roads and tunnel, to also do the feasibility study to see if it was feasible to proceed with building it.

“This is similar to students being asked to create their own questions to be used in their exams later.

“Hence, the RM11.2 million extra needed to be paid to yet another company at the Penang government’s expense to check the reports,” he said in a statement posted on his Facebook page today.

See-To compared the RM11.2 million price tag to the Penang state budget for flood mitigation projects.

He said the Penang Island City Council and Seberang Perai Municipal Council were allotted a total of RM20 million, while another RM10 million was set aside to protect hillsides.

“I leave it to you to decide if the Penang government is spending your money wisely or if they have their priorities right,” See-To added.

The state government has revealed that it hired the engineering firm, HSS Integrated Sdn Bhd (HSSI).

Penang Chief Minister Lim Guan Eng told reporters earlier today that the engineering firm was hired to check how much the Penang government should pay the contractors of the undersea tunnel and three roads project.

He said HSSI Sdn Bhd was picked as an independent checking engineer through an open tender and had submitted the lowest bid.

HSSI advised the state government to pay RM208 million to contractors Zenith Construction (Zenith) for an environmental study. Zenith had earlier claimed RM302 million for the study.

HSSI was also the company that oversaw the tender process of the undersea tunnel and roads project, together with the state Tenders’ Committee, chaired by the state secretary.

HSSI, a specialist engineering firm, has also recently received a letter of award, worth RM82.5 million, to provide supervisory consultancy services for the East Coast Rail Link (ECRL) project.

There is renewed attention on the Penang undersea tunnel and its linked highway projects after a fresh probe by the Malaysian Anti-Corruption Commission (MACC) into the projects, awarded in 2013. The cost of the tunnel and road projects is RM6.3 billion.

The “three main roads” (formerly three paired roads) planned are from Air Itam to the Tun Dr Lim Chong Eu Expressway (5.7km); Tanjung Bungah to Teluk Bahang (10.53km); and Jalan Pangkor-Gurney Drive junction to Tun Dr Lim Chong Eu Expressway (4.1km).

The 7.2km undersea tunnel will connect George Town’s Pangkor Road and Bagan Ajam in Butterworth. It is scheduled to begin in 2023.

Its feasibility study, often a topic of contention between BN and opposition leaders, is now at 92%.

Tunnel project: Payment to engineers above board, says Guan Eng

HSS Integrated bags RM82.5 mil ECRL contract

Penang exco man breaks down costs for undersea tunnel, roads

Tunnel project: Blame me so I can sue you, Guan Eng tells Teng


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