Malaysia

Loke questions award of 15-year port concession to ‘bankrupt’ firm

Transport minister confirms Inai Kiara Sdn Bhd has ‘financial problems’

Updated 4 years ago · Published on 14 Mar 2022 7:06PM

Loke questions award of 15-year port concession to ‘bankrupt’ firm
Anthony Loke says that any concessions granted to Inai Kiara Sdb Bhd would be a scandalous decision if it is indeed under receivership. – Bernama pic, March 13, 2022

by Amar Shah Mohsen

KUALA LUMPUR – Former transport minister Anthony Loke (Seremban-PH) questioned his successor Datuk Seri Wee Ka Siong on whether the government had awarded a 15-year concession to a subsidiary of a company that has gone into receivership.

Speaking during the winding up for the Transport Ministry today, Loke challenged Wee to confirm if Integrated Marine Works Sdn Bhd’s (IMW) parent company, Inai Kiara Sdn Bhd, had gone bankrupt after being sued by the government for evading Inland Revenue Board taxes. 

Both elected representatives subsequently debated the government’s decision to appoint IMW for dredging and reclamation work at federal ports.

The DAP lawmaker had also questioned the decision to appoint IMW, pointing out that it had failed to complete many previous projects under its watch.

The company was the concession holder for maintenance dredging works at federal ports for 15 years between 2004 and 2019. 

In a written parliamentary reply last week, the ministry confirmed that IMW had been appointed as contractor for a period of another 15 years beginning July 7, 2021. 

Responding to the questions by Loke, Wee had initially attempted to sidestep queries on the claims of receivership, instead justifying the government’s decision to award the concession to IMW. 

Among other things, the minister noted that during its previous concession, IMW had completed 247 projects worth RM2.28 billion and has the technical know-how to undertake future ones. 

He said any weaknesses involving the firm will be discussed with the Prime Minister’s Department’s Public-Private Partnership Unit and the Attorney-General’s Chambers before the final agreement is signed. 

Unimpressed by the response, Loke once again demanded confirmation that Inai Kiara is indeed under receivership, and said any concession granted to the firm would hence be a scandalous decision. 

Wee then admitted that there are “financial problems” involving Inai Kiara, but maintained that the firm has the technical expertise and equipment to undertake future projects. 

Loke however disputed this claim, questioning how a company could keep hold of its equipment when it is under the bank’s receivership. 

To this, Wee replied: “Yes, the company has faced financial problems, and the matter is being managed by the bank.

“But we have many conditions in terms of the dredging work that they must meet. We have a mechanism to monitor,” he said. 

Wee added that IMW was given priority as other local companies operating in the same industry are still using foreign machinery to undertake the same job, which he said could threaten the country’s sovereignty. – The Vibes, March 14, 2022

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