Monday, April 29, 2013

Highway Robbery

With zero experience and no financial capability to build highway, Kumpulan Europlus (KEurO) Bhd won a contract worth billions of ringgit through direct negotiation from the Barisan Nasional (BN) government for the construction of West Coast Expressway (WCE). 

WCE will connect North South Expressway at Taiping to Banting leading to KLIA. See below how BN government conduct highway robbery in broad daylight.

1. KEuro has zero experience in highway construction
KEuro is described as an investment holding company in stock exchange records and its businesses are organised into three divisions, namely manufacturing and trading of industrial products, construction, leasing and management services as well as investment holding. How can a company with zero experience in building highway be awarded with such a mega project?
2. KEuro has No Financial Capability to do the Construction
KEuro made RM50.8 million in losses on less than RM28 million of revenue for its financial year ending January 2011. How can a company with a cash flow in tens of millions be awarded with a project worth billions?

3. Unreasonable Re-negotiation Deal
KEuro could not money from the market to build the highway and resulted in 4 years of delay in construction. Since it does not have the financial capability to fulfil its responsibility, the deal signed in 2007 should be terminated, however BN government chose to re-negotiate with the company. Worse still, after the re negotiation, the BN government granted WCE RM2.24 billion soft loan, putting tax payers money at high risk of default!

4. Unreasonable Increase in Price
Due to the 4 years delay, the development cost of WCE increased from RM 3 in 2007 to RM7 billion 2011, equivalent to an increment of 134.5%! Even more staggering was the concession period extension from 33 to 60 years, the longest toll concession ever! One of the reasons given to the sharp increase in cost was the 100km increment in highway length. While 46% increase in length cannot fully justify a 134% increase in cost, the more perplexing question is perhaps, how did the expressway suddenly increase by 100km between the townships of Taiping and Banting?

West Coast Expressway case is an absolute highway robbery at broad daylight! Say “NO” to highway robbery, say “NO” to Barisan Nasional, vote for change, vote for Pakatan Rakyat!

Ubah Sekarang, Bersihkan Malaysia!

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