KUALA LUMPUR – The government has pushed through with the controversial deal to grant a port dredging contract with a subsidiary of beleaguered Inai Kiara Sdn Bhd.
The Transport Ministry and the port commissions or authorities had signed a new 15-year concession agreement with Integrated Marine Works Sdn Bhd (IMW) on Monday.
The deal is expected to be worth nearly RM1 billion.
The Edge reported a statement by IMW that said the signing ceremony was witnessed by Transport Minister Datuk Seri Wee Ka Siong.
It said the agreement was signed by the ministry’s secretary-general Datuk Isham Ishak and representatives from Port Klang Authority, Johor Port Authority, Kuantan Port Authority, Bintulu Port Authority and Penang Port Authority.
IMW executive chairman Quzaim Mohamad Guljar Mohamad had also signed the agreement on the company’s behalf.
IMW also said that it has previously completed 247 projects in accordance with guidelines and specifications set by the ministry, and that they were completed on time.
“IMW is also committed to fulfilling all the terms of the new concession agreement, among others, to increase the capacity of the fleet of high-tech ships and equipment with an estimated total investment of not less than RM900 million throughout the new concession,” IMW was quoted as saying.
Last Wednesday, Wee had brushed aside questions relating to the billion-dollar port dredging contract, following The Vibes’ revelation on the deal.
Wee also did not confirm or deny whether the agreement would be done this week, as mentioned in another report on the matter by The Vibes.
“You can keep on writing,” Wee had told a reporter briefly when met at the ministry’s headquarters.
A source familiar with the matter had said the controversial port dredging contract with IMW was estimated to be at around RM2.2 billion.
In early March, the ministry confirmed that IMW had been appointed as a contractor for a period of another 15 years beginning July 7, 2021.
In March, Wee acknowledged Inai Kiara’s “financial problems” during a Dewan Rakyat session, but he noted its achievements during its previous concession, where it had completed 247 projects worth RM2.28 billion.
Inai Kiara’s chief executive Quzaim Mohamad Guljar Mohamad confirmed that the company was put under receivership by Maybank in late 2016, but said the status was lifted in late 2017 upon servicing overdue payments for loans to build six dredges.
Yet, despite Wee and Quzaim’s explanations, Inai Kiara has had to deal with reputational issues, including graft charges involving the bribery of a Sarawak Public Works quantity survey assistant director.
On August 1, 2019, Inai Kiara was fined RM30,000 by the Shah Alam Magistrates’ Court for failing to make Socso contributions.
Former transport minister Anthony Loke had also raised Inai Kiara’s bankruptcy status following a legal suit by the government for allegedly evading Inland Revenue Board taxes in 2014. – The Vibes, June 2, 2022
