MACC raids companies linked to ECRL, other mega projects

PETALING JAYA (July 18): Two companies that had dealings with the East Coast Rail Line (ECRL), Multi-Product Pipeline (MPP) and Trans-Sabah Gas Pipeline (TSGP) were raided by the Malaysian Anti-Corruption Commission (MACC) this morning, sources told The Malaysian Insight.

This follows the Finance Ministry issuing a suspension notice for all contracts related to the three projects on July 3.

In 2016, the ECRL was awarded to China Communications Construction Co Ltd (CCCC) as the main contractor, which signed a memorandum of understanding with the project owner Malaysia Railway Link Sdn Bhd (MRL).

The project’s cost had since escalated to RM80.92 billion from the original RM46 billion after the line was extended from its original alignment linking Gombak in Selangor to Wakaf Baru in Kelantan, owing to higher land acquisition costs, interest and other operational costs.

Meanwhile, Finance Minister Lim Guan Eng said the MPP and TSGP projects – which were awarded to China Petroleum Pipeline Bureau (CPPB) on November 1, 2016 – were only 13% completed, but 85% of the project value of RM9.4 billion were scheduled to be paid by March 1 this year.

The MPP entails the construction of a 600km petroleum pipeline from Melaka and Port Dickson to Jitra, Kedah, while the TGSP comprises a 662km gas pipeline linking Kimanis Gas Terminal to Sandakan and Tawau.