KUALA LUMPUR – Following the Transport Ministry’s (MoT) approval to grant a port dredging contract with a subsidiary of beleaguered Inai Kiara Sdn Bhd (IKSB), former minister Anthony Loke Siew Fook has questioned his successor for expanding the scope of the controversial concession.
The concession, which was awarded to Integrated Marine Works Sdn Bhd (IMW), only involved dredging work, but Loke raised suspicions as to why the new agreement requires the company to undertake reclamation works as well.
“Why did MoT add reclamation into this concession as it was only dredging (work) in the past?
“Is it because if the concession only covers capital and maintenance dredging, it is not ‘lucrative’ enough for the failed company?” he told The Vibes.
On Monday, the government granted IMW a 15-year concession to carry out dredging and reclamation works at federal ports, effective upon signing of the contract.
The deal is expected to be worth nearly RM1 billion.
The Edge reported a statement by IMW that said the signing ceremony was witnessed by Transport Minister Datuk Seri Wee Ka Siong.
Noting that IMW had failed to complete many previous projects under its watch, Loke lambasted his successor for making a “scandalous” decision to grant a multi-billion value concession to the subsidiary of a bankrupt company.
The company was the concession holder for maintenance dredging works at federal ports for 15 years between 2004 and 2019.
The Seremban MP had previously raised the pressing matter in March’s parliamentary sitting and had issued a warning to the cabinet to not to approve the deal as it would be detrimental to the port developments nationwide.
During his tenure as transport minister, the DAP secretary-general revealed that IMW had sent letters to him in an attempt to lobby for the extension of the concession as it was ending in December 2019.
“The company is not well-managed, and they should not be given another concession.
“I refused to entertain their requests and had no plans to extend the concession as I was planning to open up the sector for competition.
“It would benefit more local companies, which can do similar jobs, instead of just saving one badly-managed company.”
Adding the importance of competitive bidding, he said: “Why should dredging and reclamation, which is mostly funded by the port operators, be monopolised by one company?”
In March, Wee acknowledged Inai Kiara’s “financial problems” during a Dewan Rakyat session, but noted its achievements during its previous concession, where it had completed 247 projects worth RM2.28 billion.
Inai Kiara’s chief executive Quzaim Mohamad Guljar Mohamad confirmed that the company was put under receivership by Maybank in late 2016, but said the status was lifted in late 2017 upon servicing overdue payments for loans to build six dredges.
Yet, despite Wee and Quzaim’s explanations, Inai Kiara has had to deal with reputational issues, including graft charges involving the bribery of a Sarawak Public Works quantity survey assistant director.
On August 1, 2019, Inai Kiara was fined RM30,000 by the Shah Alam Magistrates’ Court for failing to make Socso contributions. – The Vibes, June 4, 2022
