KUALA LUMPUR – A high-ranking individual in Prasarana Malaysia Bhd – project owner of the Light Rail Transit Line 3 (LRT3) – has asked main contractor MRCB-George Kent Sdn Bhd to award a substantial work package to a particular firm, reported The Malaysian Reserve today.
The business paper quoted a source as saying that MRCB-George Kent has refused to do so and, as a result, Prasarana has been giving the contractor “a hard time” on its progress payment.
This firm, the source told the paper, is politically linked to the senior member in Prasarana.
These events, the source said, will impact MRCB-George Kent’s cash flow and the completion date may be delayed.
Although no one is named in the report, it was reported that the issue had caused a “big clash” among Prasarana’s management, leading to president and group CEO Muhammad Nizam Alias going on “temporary leave” as of last month.
On December 8, The Vibes had reported that Nizam had been suspended.
It is understood that chief operations officer Datin Norlia Noah will be interim PGCE, and that more changes in the national transport operator’s senior leadership team and management are expected soon.
Industry sources attributed his suspension to a testy relationship at the leadership level since Pasir Salak MP Datuk Seri Tajuddin Abdul Rahman was appointed chairman.
The Umno strongman was picked for the top job as part of Tan Sri Muhyiddin Yassin’s move to reward loyalists with plum posts in government-linked companies after the prime minister’s Perikatan Nasional wrested power from Pakatan Harapan on March 1.
MRCB-George Kent is a 50-50 joint venture between Malaysian Resources Corp Bhd and George Kent (M) Bhd.
“The package involved works worth some RM300 million, which MRCB-George Kent already has its contractors to work on, but there was interference from Prasarana asking the contractor be given to another firm, which is wrong because MRCB-George Kent was appointed as the turnkey contractor.
“It means Prasarana could not dictate who MRCB-George Kent should give the project to. Failing to do so, Prasarana has delayed progress payments to MRCB-George Kent amounting to RM100 million,” the source was quoted as saying by the business paper.
Started in 2015, the LRT3 project had an initial budget of RM10 billion before ballooning to RM31.65 billion.
The 37.6km-long route is supposed to serve two million passengers along the Bandar Utama-Johan Setia route.
This project was also reviewed when the Pakatan Harapan administration took over in May 2018.
It was reported that the project resumed in July 2018, with the final total costs reduced to RM16.63 billion, and with a turnkey model.
It is expected to be completed by 2024. – The Vibes, December 16, 2020
