The Malaysian Anti-Corruption Commission (MACC) has raided two companies that had dealings with the Multi-Product Pipeline (MPP), Trans-Sabah Gas Pipeline (TSGP) and East Coast Rail Line (ECRL), following the Finance Ministry’s suspension notice for all contracts involving the three projects, reported The Malaysian Insight.
China Communications Construction Co Ltd (CCCC) was named main contractor of the ECRL in 2016 by project owner Malaysia Railway Link Sdn Bhd (MRL).
The cost of the project ballooned from RM46 billion to RM80.92 billion, after the line was extended from Gombak in Selangor to Wakaf Baru in Kelantan, due to higher land acquisition costs, other operational costs and interest.
Awarded to China Petroleum Pipeline Bureau (CPPB) in November 2016, the MPP and TSGP projects were only 13 percent completed even as 85 percent of the RM9.4 billion project value were set to be paid on 1 March 2018.
The MPP comprises a 600km petroleum pipeline linking Melaka and Port Dickson to Jitra, Kedah, while TGSP involved a 662km gas pipeline from Kimanis Gas Terminal to Sandakan and Tawau.
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
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