[UPDATED] My efforts were worth it, says Loke on govt’s resumption of KVDT2

KUALA LUMPUR – Former transport minister Anthony Loke considers Putrajaya’s decision to continue with the Klang Valley double tracking (KVDT2) project through direct negotiation a “vindication” of efforts during his time in office. 

The DAP secretary-general said that this is because the government had agreed to continue the project with Dhaya Maju LTAT (DM-LTAT) Sdn Bhd without changing the project scope or implementation period as negotiated by Pakatan Harapan (PH). 

“Under the PH administration, we had cancelled the project at first, but then we renegotiated with the company and settled on lowered project costs worth RM4.475 billion.

“We had no choice but to continue the project since there would be legal implications if we had backed out, as an Award Letter had already been signed by the Barisan Nasional (BN) government,” he said during a press conference at the party headquarters, today. 

As such, he explained that an open tender process could not have possibly been carried out since the contract had been signed based on a direct negotiation deal. 

In 2020, Transport Minister Datuk Wee Ka Siong said cabinet has agreed to reopen the tender for KVDT2, cancelling the earlier contract via direct negotiations.

This came after Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz released a list of 101 projects worth RM6.61 billion awarded through direct negotiations during PH’s rule, including the KVDT2 project.

“Wee should eat his words, since the government is currently still carrying out a direct negotiation deal. He talked big then…just to score political points,” Loke said.

The Seremban MP also issued a challenge to Wee and Zafrul, daring them to list out the number of projects they have awarded through open tenders and direct negotiations throughout their tenure as ministers. 

“Whatever they have said in Parliament is utter rubbish. Also, since Wee looks like he wants to be the ‘open tender hero’, he should be able to list his projects,” he sarcastically remarked.

On August 2, it was reported that the government and DM-LTAT Sdn Bhd, a joint venture between Dhaya Maju Infrastructure (Asia) Sdn Bhd and Armed Forces Fund Board (LTAT), had settled a legal action over the termination of the project. 

Representing the government and Wee, senior federal counsel Asliza Ali, informed the Federal Court that the government is withdrawing its appeal related to the case.

On October 27, 2020, DM-LTAT filed a suit against the government, Wee, Opus Consultants (M) Sdn Bhd and Keretapi Tanah Melayu Bhd over the termination of the company’s contract in the project. 

Based on the statement of claims, DM-LTAT, among others, alleged that to date, the official notice of termination had not been issued to the company and it was not aware of the termination until it was announced by Wee in a media statement.

Apart from compensation, DM-LTAT sought the declaration of the contract termination to be null and void. – The Vibes, August 8, 2022