Malaysia

Govt may appoint its own EIA consultants for projects: Nik Nazmi

Fees will still be borne by developers, says minister

Updated 3 years ago · Published on 02 Mar 2023 12:51PM

Govt may appoint its own EIA consultants for projects: Nik Nazmi
Nik Nazmi Nik Ahmad (centre) notes that environmental impact assessment consultants registered under the Environment Department are professional firms that subject themselves to high levels of discipline and standards. – Information Department pic, March 2, 2023

by Amar Shah Mohsen

KUALA LUMPUR – The government is looking into possibly granting the authority to the Environment Department to appoint its own consultants to conduct environmental impact assessments (EIA) on development projects. 

The fees, however, will still be borne by the developers, Natural Resources, Environment, and Climate Change Minister Nik Nazmi Nik Ahmad told the Dewan Rakyat today. 

If implemented, this would depart from existing policy, which allows developers to hire their own consultants for prescribed activities that may have significant environmental impact, provided they are registered with the department

According to Nik Nazmi, the suggestion is one of two possible options the government is considering to avoid potential abuse, with the matter to be reviewed as part of a proposal for the formation of an environmental board under the 12th Malaysia Plan. 

The other option is to allow the authorities to appoint consultants or auditors only on selected high-profile projects deemed to be environmentally sensitive. 

He was responding to questions from Sim Tze Tzin (Bayan Baru-PH) on whether the ministry intends to change the current method of carrying out EIAs and instead allow the department to handle the appointments of consultants. 

Sim said this is crucial to address the issue of developers acting as paymasters, pressuring EIA consultants to issue a favourable report to ensure projects can be carried out without hiccups. 

“If projects are rejected, then the paymasters will not release payments and will be infuriated at the EIA companies. That is why we need the government to appoint (these firms), with the cost still absorbed by the developers.”

Sim said although such an arrangement may lead to bureaucracy and delays in project completion, the proposal should be considered seriously to avoid flooding and other natural disasters resulting from developments. 

In response, Nik Nazmi said he is aware of this issue and agrees that the practice of “consultant shopping” in the hope of hiring one that can provide favourable EIA reports should cease. 

“I agree there is a weakness that needs fixing, which is why I brought up the two models earlier. And indeed a study is being conducted and this will be completed soon.”

Nonetheless, Nik Nazmi pointed out that EIA consultants registered under the department are professional firms that subject themselves to high levels of discipline and standards. – The Vibes, March 2, 2023

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