The Malaysian Insight

WHILE Malaysia and China negotiate the RM55 billion price tag for the East Coast Rail Link (ECRL) project, other parties are offering to do it for as low as RM10 billion, Dr Mahathir Mohamad told The Malaysian Insight. 

Without naming these parties, the prime minister said Putrajaya would definitely consider the cheaper alternatives because it would be “stupid” to ignore them.

“Some even said they can do the ECRL for RM10 billion instead of RM55 billion. Some are Chinese companies, some are local companies.

“We have to talk with them if there is a possibility of reducing the cost from RM55 billion to RM10 billion. We would be stupid not to accept.

“But we have to study whether in fact you can reduce the cost that much,” Dr Mahathir told The Malaysian Insight.

The government was prepared to pay even more (than RM10 billion) but not RM55 billion for the rail link from Kelantan to Port Klang, he said.

“Paying RM55 billion for something that the highest estimate is only RM30 billion would not be good for our financial health.”

He said this when asked to clarify the status of the China-backed ECRL project and two gas pipeline projects valued at another RM9 billion.

During his official visit to China recently, Dr Mahathir said Putrajaya had cancelled these three projects due to their inflated costs which he blamed on the previous Barisan Nasional administration.

He, however, later said studies were still being made on whether to defer the projects or deal with them in some other way.

Detailing his talks with the China government on the matter, the prime minister told The Malaysian Insight that he explained to them that the government had no money and could not afford the projects.

“We either have to cancel the (ECRL) project or to defer it or to reduce the cost, that is what we want to do.

“The details of all these things must be done at the official level.

“For me, I had only said it in principle, we have no money and we have to cancel or defer, or reduce cost.”

Dr Mahathir also blamed former prime minister Najib Razak for entering lopsided contracts with China for the projects.

“Unlike all other contracts, instead of paying based on work done, they paid according to a timetable.

“And we have found that the work done was only 13% but we already paid 39%. What do we get from the extra money that had been spent? This has got to be negotiated.”

On Thursday, Najib defended his government, saying that everything was above board with the contracts entered for the three projects.

He also urged Dr Mahathir to make public all agreements on the projects as they will vindicate him. He further asked the new government to set up a royal commission of inquiry into the projects if Putrajaya thought he was guilty.

Dr Mahathir, however, dismissed this idea of making the documents public, adding that the RCI would not solve anything.

“RCI doesn’t solve anything. It is just meant to point fingers and the fingers are pointed at him (Najib).

“There is no need for an RCI. He is the perpetrator, we wouldn’t have this problem if Najib wasn’t the prime minister,” added Dr Mahathir. – August 28, 2018.