IT was sometime in the late 1990s that the Transport Ministry under Tun Dr Ling Liong Sik held a meeting with the management of the country’s ports to address the recurring problems of siltation and debris build-up of the nation’s channels.
This is a common problem at the entry points to most ports where siltation causes the channels to narrow, preventing big ships from entering and docking.
Obviously, this would be a spanner in the works for shipping and trade. How deep and wide one’s channel is will determine the number and size of tankers that call at one’s port.
It is said at least 30 million tonnes of silt need to be dredged annually – 12 million alone in Port Klang which is in the Malacca Straits – the world’s longest, narrowest and busiest straits.
Hence the heads of all the major port authorities – Klang, Johor, Penang, Kuantan, Labuan, Kuching, Miri, and Sabah – came together to propose the forming of a consortium to take over the dredging of the nation’s trading waterways.
It would come under the purview of the Transport Ministry, and the respective port authorities would fork the funds needed (proportionately according to size of the port) for the dredging activities.
The paperwork was done and presented to the government. Imagine the surprise of those who prepared the proposal when a few months later a businessman approached them – with the very same proposal they had presented to the government.
“The b*****d was showing me my own paper!” said one of those involved in the drafting of the proposal.
Needless to say, the proposal by the port authorities never saw the light of day. And until today, scheduled and consistent dredging of the channels is still a problem port managements need to deal with.
The business of dredging is a lucrative one. For instance, the Port Klang Authority spent RM100 million in 2016 just to dredge parts of the South Channel from 16.6m to 18m – some 1.5m deep.
Just last week, the government signed a new 15-year dredging concession agreement with Integrated Marine Works Sdn Bhd (IMW). The deal is worth RM900 million.
This was a controversial decision that lacked transparency on the part of the Transport Ministry which led the negotiations.
The deal is controversial because IMW is a subsidiary of beleaguered Inai Kiara Sdn Bhd which was put under receivership in 2016 by Maybank for failure to service loans taken out to build six dredges.
Inai Kiara’s chief executive Quzaim Mohamad Guljar Mohamad however said the status was lifted in late 2017 upon servicing these overdue payments.
Inai Kiara has had to deal with other reputational issues, including charges involving the bribery of a Sarawak Public Works quantity survey assistant director, as well as failure to make Socso contributions; and a lawsuit by the Inland Revenue Board in 2014 for outstanding taxes.
Former transport minister Anthony Loke had also raised Inai Kiara’s choice in Parliament.
Approached to respond to the concerns, Transport Minister Datuk Seri Wee Ka Siong told The Vibes to “keep on writing”.
Which we are.
Despite the questions and concerns, a signing ceremony witnessed by Wee was held on May 30. And this time there is an added clause of “reclamation works” according to Loke.
Representing the government in the signing of the agreement was Transport Ministry Secretary-General Datuk Isham Ishak and representatives from Port Klang Authority, Johor Port Authority, Kuantan Port Authority, Bintulu Port Authority, and Penang Port Authority.
Representing IMW was Quzaim himself as executive chairman.
Wee had told Parliament that despite its financial and reputational issues IMW had completed 247 projects on time.
With this new concession agreement signed, IMW and Wee will be put under the microscope to ensure that the former delivers on its promises inked on May 30 – including the reclamation works!
Perhaps IMW is providing its best but the lack of transparency over its appointment – for instance, were tenders called?
It does not seem to be the case if Loke’s revelations are anything to go by. He revealed that during his tenure IMW had “lobbied” him but that he had snubbed them in favour of opening up the works for competition from other companies.
The lack of details and openness, and the reluctance (or at the very least cursory responses) of the transport minister to concerns raised is not convincing taxpayers that there isn't something fishy going on here. – The Vibes, June 5, 2022
Terence is editor-in-chief of Petra News which publishes The Vibes and its Bahasa Malaysia sister portal Getaran
