Bina Darulaman denies alleged irregularities in contract to build KUIN campus

ALOR SETAR: Bina Darulaman Berhad (BDB), a Kedah state government subsidiary, denied on Tuesday, Jan 11 alleged irregularities in the award of the contract to build the Insaniah University College (KUIN) campus in Kuala Ketil, Baling.

Chairman Datuk Paduka Mohd Saad Endut said the decision by its subsidiary Kedah Sato Sdn Bhd (KSSB) to appoint a well-known Malaysian contractor, as the subcontractor for the KUIN permanent campus project, was unanimous and fully endorsed by the respective boards.

He said all the processes involved in the award of this appointment were observed and the directors of BDB had acted in accordance with the Code of Corporate Governance.

"The subcontractor is reputable, competent and respectable with international experience and a proven track record in working with us to complete the KUIN.

"KSSB is excited by the opportunity to enhance its own industry expertise and future growth with this strategic partnership within Malaysia and abroad," he said in a statement on Tuesday.

On Jan 3, Kedah Barisan Nasional (BN) Youth had lodged a report with the Malaysian Anti-Corruption Commission (MACC) seeking a probe into alleged irregularities in the award of the contract to build the KUIN campus.

Kedah BN Youth chairman Badrol Hisham Hashim claimed the PAS-led Kedah government had awarded the contract for the second phase of the project to a company which had not submitted a tender.

Badrol Hisham also claimed that six contractors who had submitted tenders for the project were ignored by the state government, which awarded the contract to the company which has its headquarters in Kuala Lumpur.

The KUIN campus is now under construction in Kuala Ketil, at a cost of RM330 million, and is expected to be completed in September next year.

Kedah Sato Sdn Bhd was awarded the contract for the first phase and the second phase of the project was to have been awarded through the tender system.

Badrol Hisham also claimed that Datuk Mahfuz Omar resigned as the chairman of Syarikat Kedah Sato on Dec 29 last year in protest, owing to dissatisfaction over the allegedly unfair award of the contract.

Mohd Saad said the construction of KUIN is being undertaken on a Private Finance Initiative (PFI) proposed by BDB and approved by the Kedah state government.

"Therefore, the BDB Group as a public listed company on Bursa Malaysia, has a responsibility to its shareholders, bankers, its employees and the state government as its majority shareholder through the Kedah State Development Corporation (PKNK), to complete this project within the time period and approved budget.

"Our appointment of the said subcontractor is one such decision where the question of risks has been debated at a number of Risk Committee meetings and special meetings of the Board," he explained.

Mohd Saad said given the need to complete the project on time, the board decided that the managament should select a suitably qualified subcontractor to undertake the balance of the KUIN project.

The project must be completed by the end of 2012, to enable the university to move to its new campus and prepare for the student intake in May 2013.

"The key consideration is the contractor's track record and financial strength and on this criterion, the board acted profesionally.

"All decisions made to date, are routed through our Risk Management Committee before they are considered by the board, which has a right balance of independent directors," he said. — Bernama