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

Related News

Malaysia / 4mth

Domestic flight capacity increases ahead of Hari Raya - Loke

Malaysia / 5mth

DAP’s July 12 congress: An indication of deeper unease within the party?

Malaysia / 1y

Airlines to refund consumers for flight delays soon, says Anthony Loke

Malaysia / 1y

B1, B2 licences can be upgraded to Class B now, says Anthony Loke

Malaysia / 2y

Anthony Loke’s shortness of breath not related to heart attack, says Lukanisman

Business / 2y

Fresh opportunities for Sabah's sluggish shipping industry as Putrajaya discontinues National Load Centre policy

Spotlight

Malaysia

‘No such thing as Bangkok Move or Dubai Move’ – Ahmad Zahid

Malaysia

KSN: Rectify long waiting times, service challenges and workforce constraints at UMMC now

Malaysia

LGE trial: 4 to 5 meetings held before open tender bidding for road, undersea tunnel projects - witness

Malaysia

Najib marks 73rd birthday as legal battles continue from behind prison walls

Malaysia

Court orders police to probe foreign management institute

Malaysia

UMNO pushes back against Hamzah’s ‘PBN’ proposal, says BN-PN cooperation is not a new coalition

Malaysia

Form four student killed after car crosses into opposite lane in Setiu crash

World

France heatwave death toll rises to nearly 5,800 as extreme temperatures trigger record mortality

Culture

Penang: Three refurbished tourism attractions to be ‘reopened’ soon

By Ian McIntyre

You may be interested

Malaysia

Johor appoints 10 deputy exco to strengthen administration

Malaysia

Network School moves to Kazakhstan

Malaysia

PM hails Federal-Sarawak partnership in Sarawak Day message

Malaysia

Govt embarks on RM1.49B flood mitigation projects in Sabah as high-risk areas receive priority

Malaysia

PETROS begins first oil production as Sarawak pushes to expand role in Malaysia’s energy sector

Malaysia

Zahid says PN-BN 'PBN' proposal must be formalised before talks can begin

By Alfian Z.M. Tahir

Malaysia

Deaf e-hailing driver sues government, police over alleged assault, seeks disability access reforms

By Alfian Z.M. Tahir

Malaysia

MCMC issued more than 1.2 million content removal requests - Teo Nie Ching