Kg Baru redevelopment: The Paradox

The redevelopment of Kampung Baru will proceed soon. DBKL is pushing ahead with the project and will spend RM236mil to upgrade the pedestrian walkways.

Thereafter, the development will encroach into the Malay heartland and the people within will be influenced to accept the change - destroy the old, and built a new cityscape; destroy the original, and replace it with a modern cityscape.

Former Titiwangsa MP Datuk Seri Suleiman Mohamed insists that Kampung Baru must move with the times to progress and modern development would help upgrade the lifestyle of the residents.

“Traditions and sentimentality are fine, but the residents must understand that for Kampung Baru to progress, the residents must embrace change,’’ he said.

Change is imminent; but will it be a change for the better or worse? This is the dilemma!

The Malays in Kampung Baru have to think carefully, think deeply and think broadly about this change which once it is agreed upon and contract is sign and works begin, then if any risk event takes place which are not foreseen at this stage the outcome may be insurmountable and fatal.

Ponder, Ponder, Ponder!
Risk, Risk, Risk.
Reward? Reward? Reward?

Development is surely good and once Kg Baru is redeveloped the land will fetch a high premium. The current price of land there may be valued around RM30-RM50 per sq ft. Once developed with a new city skyline the land price may shoot up to RM1,000 per sq ft. But, by then, the people of Kg Baru would not be the owner of the land anymore; it would probably be acquired by DBKL or the private developers and it is they (the new owners) who would reap all the benefits and reward of the new land price. The Kg Baru residents would probably have opted to trade-in their land in exchange for a condominium and some cash (sufficient for them to buy furnitures and renovate their new home). They could only stand and stares at the land and say to their grandchildren: "Dulu tanah ini hak Tok. Sekarang sudah tak da." The grandchildren would then asked: "Kenapa Tok jual tanah yang molek ini? Sekarang kami tak sanggup beli balik hak ini lagi."

Once development gets underway, the bungalows and shophouses would be demolished and highrise buildings and skyscrapers will be the new skyline.

The cost of redevelopment and the cost of procurement of the rights to the redevelopment would be more than RM1 billion. Who could afford to pay such sum? The big time guys! Who are they? The Chinese and the foreigners!

With such massive investments, the developers must get sufficient buyers for those properties. The price of the properties will not come cheap; each apartment or each condominium units, each office lot or retail space will cost RM700,000 and above; it could even be as high as RM2mil for each strata title. Who could afford to buy them? The residents would have opt out of the land or would have acquired a condominium unit in exchange for the land. But the residents are a small population as compared to the vast development. The development needs a lot of buyers; anyone who can afford to invest and buy them; anyone.

As such, people from outside will have to be lured to buy the properties. Investors, speculators, foreigners and non-Malays would be lured to own a property there.

What would then become of Kampung Baru, the Malay heartland? So, what then happens to a Malay heartland?

It will no more be Kampung Melayu. It would most likely become "Bandar Cina dan Mat Salleh", because it has being turned into a metropolitan city.

By then, it would be too late and the Malays will have to cry "Kami Hilang Ketuanan" and cry "Kami di serang oleh pendatang"; they have then lost the last bastion of control in the city.

It must be noted that, for without the investors and buyers, the redevelopment will fail. Look at South Johor Economic Region/ Iskandariah Development Zone (Gelang Patah) - without the Singaporeans the development is a standstill; but with Singaporeans, the Johor Malays will cry "invasion". Mahathir had warned about the risk of "invasion".

So, the people of Kampung Baru is in a paradoxical position - develop or remain?

My opinion? Remain; developed and Kampung Baru becomes Bandar Cina campur Orang Putih.

But if the Malays can accept the change, and are able, capable and competent to deal with globalization and liberalization and capitalism, then redevelopment is acceptable and good. Please remember: Don't blame the Chinese; the mooters of the redevelopment are the Malays themselves. You take your own risk and blame only yourself. I am of the opinion that Kampung Baru should remain as the Malay heartland. But that is only one man's viewpoint and carries no weight.


*********************************************************

Read more about it below:

Star Metro: RM236mil to upgrade Kampung Baru

Star Metro: DBKL prefers landowners to develop area on their own

Residents worried development will spell death for heritage

***********************************************************

Star Metro: RM236mil to upgrade Kampung Baru

THE Kuala Lumpur City Hall (DBKL) will spend a whopping RM236.5mil to upgrade the infrastructure in Kampung Baru.

The federal government is contributing RM100mil from the allocation under the 9th Malaysia Plan.

One of the projects involves building a series of pedestrian walkways to improve connectivity and accessibility within the city.

The DBKL said a tender would be called soon to build the walkways connecting Dataran Merdeka to Chow Kit and Kampung Baru at a cost of RM31mil.

According to DBKL land development unit director Mohd Sahak Surip, the pedestrian project will be carried out in phases.

THE Kuala Lumpur City Hall (DBKL) prefers to let the Kampung Baru residents develop their own land while it plays the role of administrator.

According to DBKL master plan department director Zainab Mohd Ghazali, under the Draft Kuala Lumpur City Plan 2020, there are four options for the Kampung Baru landowners on the development of their area.

The first option allows the landowners who want to develop their land on their own to go ahead and do so.

The second option is a joint development project among the landowners to develop their land and to share the development cost.

The third option involves the Kampung Baru Development Corporation teaming up with developers to develop the land. In this instance, the DBKL will act as the mediator.

The fourth option involves the DBKL acquiring land in Kampung Baru for development under Section 3 (1) (b) of the Land Acquisition Act 1960.

ALTHOUGH the federal government has announced the setting up of a Kampung Baru Development Corporation with an initial funding of RM100mil to develop one of Kuala Lumpur’s oldest villages, most of Kampung Baru residents do not seem to be excited.

Obviously, they do not want outsiders to be involved in the development of their precious heritage and want the right to determine the future development of the area.

Since the Draft Kuala Lumpur City Plan 2020 was unveiled nearly three months ago, most of the Kampung Baru landowners have been having sleepless nights, worrying that their lands may be acquired by force under the Land Acquisition Act 1960.

As the Aug 31 objection period deadline for the draft plan draws near, many landowners are concerned and worried that the plan may be confirmed without due consideration of their rights, interests and welfare.

Most of the residents welcome development but are not very sure what the draft plan is all about, especially the matters concerning the mechanism for developing the land.

“It is so confusing. I’m afraid to lose my house. It’s all I have. I want to stay here forever,’’ 69-year-old Aishah Mohd Tawil said with a sob.

The poor woman has apparently been impressed by the pictures of mega projects printed in the draft plan but wondered just where her little kampung house was going to fit in all those beautiful but daunting pictures.

“Can you blame us for seeking help from our wakil rakyat (MP) because the DBKL (Kuala Lumpur City Hall) did not want to listen to us or come here to see us,’’ 62-year-old Zakaria Yahaya said.

“I don’t care what party the MP (Titiwangsa MP Dr Lo’ Lo’ Mohamad Ghazali of PAS) represents, but she is the only one who can present our views in parliament,’’ the Kampung Baru native said.

Resident Hashidah Abdul Razak said she would never trust anyone again when it concerned development affecting her home.

Hashidah, 50. said both her father Abdul Razak Syed and grandfather Mohd Sayed were cheated in the 1980s when a developer friend forged the S&P documents to swindle them of their land in Kampung Baru.

Hashidah has not recovered from the pain and anguish brought upon by endless court battles and an out- of-court settlement that was only half of what the property was worth.

“It makes no difference to me who develops Kampung Baru but I will not be cheated again,’’ she said.

“We want to make sure that outsiders are not involved in the development of Kampung Baru,’’ Hashidah said.

However, former Titiwangsa MP Datuk Seri Suleiman Moahamed insists that Kampung Baru must move with the times to progress and modern development would help upgrade the lifestyle of the residents.

“Traditions and sentimentality are fine, but the residents must understand that for Kampung Baru to progress, the residents must embrace change,’’ he said.

$220 million BDC Project

The RM220 million BDC interchange project, which encompasses the Kuching International Airport-Stutong Link Road was finally completed in a record 8 months, one year ahead of schedule.

Who could have done that? Which company has such ability?

It is none other than ... Ting Pek Khiing, the superman of construction and the company is Global Upline Sdn Bhd of which Ting could only be named as the advisor.

"Many people are doubtful we can make it. Today we prove we can do it," Ting said.

According to Ting, the design and workmanship of the interchange was among the best in Malaysia.

I am not able to comment if this is the best in Malaysia regarding workmanship and design, but one thing is for certain - only Ting Pek Khiing can do such a massive project in 8 months for a project that has 18 months contract period and of which is worth some RM220 million. No other contractor could... bearing in mind that the duration is calculated from the date in the award letter, not the date of physical commencement.

Syabas to Tan Sri Datuk Ting Pek Khiing and Global Upline. Sarawak Boleh!

Designed to Fail!

Costly blunders? Blundering the nation's coffers?

Some shocking facts about contractors who were awarded government projects:

• They lack expertise. Incompetent.
• Too ready to make a quick buck.

Projects in the spotlight recently:

• Middle Ring Road 2: Cost - RM120m (it actually cost RM238.8mil); an extra RM70m to pay for repair work paid by the govt even though it was contractor's fault.
  
• Navy Recruit Training Centre (Pularek): Cost - RM198m; extra RM13m needed, 7,032 defects and paid by govt even though it was contractor's fault.
  
• Matrade Building: Cost - RM287m; the cost kept rising until it reached that amount. Original contract value is RM167m. The extra RM120 mil is paid by govt.
  

It may sound astonishing; even ridiculous. But it is true.

Reasons for these blunders was revealed by Second Finance Minister:

(1) Projects were awarded to contractors who do not have the expertise whatsoever.

(2) Projects given to those who do not have the financial means to complete the projects.

(3) Bumi contractors sold the project for quick bucks.

(4) Consultants' grossly incompetent.

(5) The actual builder is ultimately the sub-sub-sub-sub-sui contractor. (A $200m award to the maincon becomes $80mil when it was passed down to the ultimate builder.)

Incompetent contractors, delays, cost overruns, failed projects: Lessons learnt?

The government has put in place mechanisms to avoid delays in project completion and ensure cost effectiveness. Referring to the New Sunday Times report yesterday on cost overruns in projects due to the incompetence of contractors and consultants, Minister in the Prime Minister’s Department Datuk Seri Mohd Effendi Norwawi said the mechanisms
would ensure only competent contractors were given government jobs.

He said the government had drawn valuable lessons from case studies of failed projects, as well as the successful ones.

“We have put in place new initiatives to streamline our procurement processes and to ensure projects are delivered efficiently and cost effectively.”

These, he said, included:
• Ensuring projects are awarded to competent contractors; and,
• Installing systems to monitor projects on near real-time basis to spot any delivery problems early and resolve problems immediately.

Read more HERE

MRR2 Repair: RM70 mil

Repairs to MRR2 flyover cost RM70m

Compiled by ROYCE CHEAH, BEH YUEN HUI AND A. RAMAN
1st February 2007, The Star

THE Public Accounts Committee (PAC) has revealed that repairs to the MRR2 flyover in Kepong cost more than RM70mil, Utusan Malaysia reported.

PAC chairman Datuk Shahrir Abdul Samad said the figure was high compared with its construction cost – RM120mil.

He was quoted as saying that this reflected “shoddy design and construction concepts” that were approved by the Government when projects were given to contractors.

“There is no point in spending more and not being able to use it,” he said, adding that it was difficult to pinpoint who was responsible for the mistakes in such a project.

“As an example, the MRR2 project has the contractor and concessionaire constantly pointing fingers at each other. The problems were with the design and construction.”

Shocking? It was originally estimated to be RM20 million.

More shocks? The government is paying the bills. The MRR2 is a Design-Built-Turnkey contract and the contractor has to give an absolute guarantee to the government for the design and construction.

Much more shocks? Wait!!!!

Report Unsatisfactory Contract Works

Schools urged to report unsatisfactory contract jobs

School authorities have been urged to report discrepancies in contract jobs without fear.

Deputy Education Minister Datuk Hon Choon Kim said shoddy work and over-valued jobs should be reported so that appropriate action could be taken against those responsible.

“After the over-valued contract job in a school in Johor came to the limelight, I had called on the schools to give feedback.

“I even had my fax number flashed in the media. But we did not receive a single call from schools."

“So, I took the initiative to ask my officers to call 114 schools to find out if they are happy with the repair jobs at the schools. "

“Most said they are satisfied, some said they have no comment, and a handful of them said they are not satisfied. "

“I forwarded the dissatisfied cases to the Works Ministry for follow up action,” he said.

He added the Works Ministry was in charge of monitoring repair works in schools and awarding contracts.

Hon said this after visiting SJK (C) Keat Hwa K and SJK (C) Keat Hwa S here on Monday.

He said the Keat Hwa K school board members had requested for the school to be relocated elsewhere.

A teacher fell to his death last year when the wooden flooring on the second floor that was heavily infested with termites gave way.

Hon said the the school board should find suitable piece of land and initiate fund-raising drives to finance building works.

“The government will only help to top up the fund, if needed,” he said.

Hon also said the government had doubled the allocation for partially aided schools from RM50mil during the Eighth Malaysia Plan to RM100mil in the Ninth Malaysia Plan.

“This year alone, 152 partially aided Chinese schools were given a total of RM8.257 mil,” he said, adding that last year the Chinese schools only received about RM4mil.

He said 114 Chinese primary schools received an additional allocation of RM4.7 mil last year to repair damages caused by termites.

Pay as Contracted

PM wants government to make prompt payment for services and goods

Monday October 2, 2006

The Star Online

Prime Minister Datuk Seri Abdullah Ahmad Badawi wants Ministries, departments and agencies to make payment for services and goods provided to them without delay.

The Prime Minister has also ordered the Economic Planning Unit (EPU) and the Implementation and Co-ordination Unit (ICU) to issue reminders to the ministries and departments to make the payment as soon as possible.

“I want payments for goods and services provided to the Government be paid expeditiously. Do not wait any longer.

"If the goods had already been supplied and services has been provided to us, then there is no reason to delay payment.

“A contract is a form of promise and if the other party has carried out their part of the deal, then we should carry out ours, which is to pay them for their services,” he told staff of the Prime Minister’s Department at its monthly gathering here on Monday.

The Prime Minister said in Islam, it was important that responsibility be carried out and promises be kept, adding that fulfilling one’s part of the contract was viewed seriously by the religion.

He said delay in payments would not benefit the Government which did not want unpaid bills to pile up, making payment a problem.

“If we do not pay, a lot of people will suffer.

"Workers will not get paid, banks will not be paid for the loans issued and suppliers could not supply construction materials because of they get paid late.

“This will cause anger and dissatisfaction against the Government.

"Therefore, I want to remind ministries, department and agencies to expedite payments and I want the central agencies to remind them on this,” he said.

Cakap boleh serupa bikin kah?

MRR2 Re-Open to Light Traffic

MRR2 reopens to light traffic

Light vehicles can now use the Kepong stretch of the Middle Ring Road II (MRR2), closed in March for repairs to structural defects.

Two lanes opened on both sides at 2pm yesterday but the third – the fast lane – would remain close for structural reinforcement works.

Works Minister Datuk Seri S. Samy Vellu, who visited the site yesterday, said these lanes, however, would be closed every weekend from 10pm on Saturday to 6am on Sunday.

He said the Public Works Department was also repairing a stretch on the MRR2 between the bus stop near the Manjalara junction and the access road to the Forest Research Institute of Malaysia near Taman Indah Perdana.

Samy Vellu said repair works on the MRR2 was 70% complete and “progressing smoothly without any delay.”

“Preliminary pier crosshead reinforcement work on all the pillars has been completed. This is to allow light vehicles (below 2.1m in height) to ply the MRR2,” he said.

“Further structural reinforcement work is being done on all pier crossheads and is expected to be completed by the end of November.”

Samy Vellu assured motorists that the MRR2 was now safe and “above the international standard safety benchmark.”

On the RM52.85mil interchange linking the new Sungai Buloh Hospital to the North-South Expressway, he said he expected it to be opened to traffic from Aug 14.

Samy Vellu also said repairs to the Sierra Mas bridge in Sungai Buloh, damaged by floods recently, were set to be completed by the end of this month, and the bridge would be opened on Sept 1.

He also said the Government has approved RM110mil for the repair and upgrading of more than 300 bridges nationwide.

“Some bridges need major repairs while some minor ones.”

NST Report: MRR2 reopens and it's 'safer than ever'

Samy Vellu said the cost of repairs was still being calculated although earlier estimates had pegged it at RM40 million. Contractor Bumihighway, which built the initial stretch, is paying for the repairs.

Structural reinforcement is being done on all pier crossheads and is expected to be completed by the end of November.

The MRR2 was closed for the first time for three months from Aug 8, 2004, and reopened in November last year.

The decision to close the stretch for a second time came after cracks were discovered and a study by independent consultant, Halcrow Group Limited of Britain, found cracks on 31 of the 33 pillars of the flyover.

The company said a design flaw and improper anchorage of the crossbeams on the concrete columns were to blame.

Repairs to the 1.7km stretch included water-proofing and installing metal braces as recommended by Halcrow.

Fortuna Court Condo Fear of Soil Erosion

Residents living in Fortuna Court Condominium at Jalan Awan Cina, Taman OUG, Kuala Lumpur, are worried about soil erosion behind their houses.

This is because a development project is being carried out and the slopes have been left exposed since work started.

The condo management company YBR had written several letters to the developer and City Hall highlighting their fears and so far they did not get any response.

YBR Management then decided to engage Zaidun-Leeng engineering consultant to assess the situation.

The engineers observed that the neighbouring development did not have proper drainage system and this had resulted in surface water flowing to the adjacent land which had cause the soil erosion and affected the stability of the slopes. The engineers recommended that monitoring system should be set up and that an effective drainage system was needed to avoid seepage.

Jalan Reko Bridge Kajang crack

Jalan Reko bridge in Kajang was closed after a large crack in the structure appeared which is believed to be caused by soil erosion. The crack ran almost through the whole length of the bridge.

Taman Desa Jaya soil erosion

Taman Desa Jaya, Selayang

Four tombs had been damaged by soil erosion washed down by a slope. No retaining wall had been constructed on the slope. The developer said they owned the tomb site but the residents argued that the cemetery had been there for 40 years.

Bukit Kepong Erosion

NKVE-Setia Alam Link Open to traffic

June 2006, NKVE-Setia Alam Link was opened to traffic.





July 2005: Box girder collapse.

Nine Bangladeshi construction workers were injured when eight girders of a flyover of the NKVE-Jalan Meru Link near Bukit Raja collapsed. The girders, forming a 10m stretch, collapsed at 1.40pm onto the NKVE (New Klang Valley Expressway) below, bringing down 17 workers who were working on it.

“We were dragging a reinforcing cable (which hold together the girders) across the flyover with 15 other workers when I heard a loud cracking sound. The section suddenly collapsed. I managed to break my fall by jumping off the falling panel just before it crashed onto the road. Shafiqul could not escape as he was trapped by the cable he was holding,” Nurzzaman said.

The 28-year-old Shafiqul, who suffered head injuries and a broken leg, is being treated at the Intensive Care Unit of the Tengku Ampuan Rahimah Hospital in Klang. The others who were also warded were Musharaf (head injuries), K. Razu Ahmad Amzad, 39, (head injuries), Alam Agir, 40, (left leg broken), Abu Bakar, 30, (head injuries), Jahangir Alam, 30, (head), Bagt, 28 (left leg broken) and Md. Abd Malak, 38 (head injuries).

The construction of the NKVE-Jalan Meru interchange started in May last year and was due to be completed at the end of this year. The RM150mil, 7.5km link connects the NKVE to Jalan Meru in Klang.

DRM-HICOM wins $425 million without Arbitration

All the time, whenever there is a claim which the government disputed, the superintendent officer and the project team representing the government, stood on hard ground.

The government represented by the superintendent officer were prepared to go to court or arbitration to remedy.

But each time, when it was to be up for hearing, the government, advised by the attorney general office, would back off and sought out of court settlement; they call it compromise. In reality, they knew they would lose, because they didn't have enough supporting documents and evidence to back up their contention; impliedly, it was an admission of wrong and admission of a breach of contract.

It's no different this time.

DRB claimed variation order works for a balooned up sum of $900 million. They got $425 million bonus; courtesy of the government.

At first the S.O. stood firm to deny the claims as frivolous and vexatious. When the time to be present at the court of arbitration, they back out and sought refuge behind a compromised solution.

Why were they prepared to pay now, and such a hefty sum?

Is it the Syed Mokhtar factor?

DRB-HICOM is now in further talks with the Government on liquidated ascertained damages and the release of performance bond. It said is hopeful and positive that this matter will also be resolved soon.

DRB-HICOM Bhd, announced yesterday that the Government has finally agreed to pay RM425 million for additional works done on the Rawang-Ipoh electrified double-tracking rail project. The settlement is for the payment of variation order and loss and expense claims for the extra works, it told Bursa Malaysia Bhd yesterday.

The Rawang-Ipoh track forms part of the national railway firm Keretapi Tanah Melayu Bhd's RM14 billion project to lay parallel lines from Padang Besar to Johor Baru. DRB-HICOM, which is now controlled by tycoon Tan Sri Syed Mokhtar Al-Bukhary, began work on the RM2.6 billion rail project in mid-2000 and was at first given until the end of 2002 to complete the stretch. The deadline was later extended to December 2004. The group was reported to have completed about 88 per cent of the 179km stretch. In June, the Government terminated the contract with DRB and appointed UEM Builders Bhd, one of the sub-contractors of the project, to complete the unfinished portion of the project.

Analysing Matrade Fiasco

Samy Vellu finally relented; he confirmed that the government can't sue the directors of PISB as it is now insolvent.

To this, Brendan Periera had to say: Welcome to the world of Perangsang International Sdn Bhd (PISB), the contractors who clinched the deal to build the Matrade building.

Brendan recalls the History of the Fiasco

In 1993, the PWD called for a limited tender to build the Matrade building and estimated that it would cost RM175 million and take 125 weeks to complete.

After studying the 14 bids, PWD recommended that Ireka Construction be given the job. The company promised to complete the job in 138 weeks for RM157 million. The recommendation was forwarded to the Finance Ministry and was promptly dumped.

The ministry wanted the 14 companies to re-submit their bids. But two days after it issued that directive, the Finance Ministry surprisingly ordered PWD to negotiate directly with PISB.

Why this company was given the contract still stumps the people at PWD.

From the start, there were problems. PISB obtained the development order late and it needed three extensions, delaying the completion by 686 days. When it completed 98 per cent of the project in 1999, the PWD discovered cracks in the structure and ordered PISB to carry out repairs. The contractor refused, saying that it had carried out the project according to specifications.

PWD and the Finance Ministry — now under a new minister — obtained the services of Arup Consultants. Even after the consultants concurred with PWD’s findings on the structure of the Matrade building, PISB refused to carry out remedial work.

At this point, you have to sit back, digest what has happened and ask some elementary questions.

Question number 1: Why wasn’t PISB or its directors sued in 1999 for not doing their job competently? Why wait until now to visit the possibility of taking action?

Question number 2: Were the terms of the contract so generous that the contractor could walk away without agreeing to do remedial work?

Brendan posed this question to ask: Can the money be recovered?

According to Brendan: There is a better chance of Malaysia qualifying for the 2010 World Cup than PISB paying any compensation.

And here is why: PISB was sold off to Tajuk Modal on July 19, 2004, for RM2. PISB was renamed Tajuk Construction Sdn Bhd and the latter was wound up on Jan 18 this year. In short, PISB doesn’t exist anymore. In any case, it would have been tough to go after the directors of PISB. The contract was signed with the company and unless the directors gave any personal guarantees, they would not be liable in a personal capacity.

Some options appear available to the authorities.

One: Lodge a police report, find out if the decision by the Finance Ministry was above board and pursue any wrongdoing — no matter where it leads.

Two: Urge the Selangor Government to make good the RM95 million owed to the Federal Government. After all, before it tanked, PISB was a subsidiary of the State’s investment arm. Surely, the people at Shah Alam have a moral obligation to right this obvious wrong.

Would the government learn a lesson or two from this fiasco?

Or, will history repeat itself, ...sooner rather than later?

Matrade Finally Complete?

After 9 years, and after overspending more than $120 million over and above the original budget, the project was finally completed.

A handover ceremony was held in the building in the presence of International Trade and Industry Minister Datuk Seri Rafidah Aziz and Works Minister Datuk Seri S. Samy Vellu.

Rotol-AMS-Bumi Technologies Sdn Bhd, the contractor appointed to carry out the balance works had completed 39 days ahead of schedule. The appointment of new contractors to rectify the defects saw costs balloon from an initial RM167 million to RM287.51 million, with about RM64.8 million spent on repairs.

The building was finally completed by RotolAMSBumi Technologies Sdn Bhd and Syarikat Pembinaan Anggerik Sdn Bhd together with NSC Mekanikal Fastcoll Corporation Sdn Bhd.

Believe it? The repair works costs $64 million and the outstanding works cost $56 million? The contractor must have made a fortune! Anyway, it was better than the previous contractor who had wallop $200 million and abandoned the project. The hardest to swallow is that the previous contractor, Perangsang International Sdn Bhd (PISB), is owned by the Selangor Govt.

PISB was a subsidiary company of Kumpulan Hartanah Selangor Bhd (KHSB), an investment company of the Selangor government.


The Works Ministry plans to bring former board members of Perangsang International Sdn Bhd (PISB) to court for the nine-year delay in completing the Matrade building.

Samy Vellu said he had personally investigated the company and its directors and all evidence gathered would be produced in the event of a court hearing.

Works Minister Datuk Seri S. Samy Vellu said although the company was now defunct, the ministry would not remain silent. “Although the company no longer exists, we will go to the court and take action against the directors,” Samy Vellu said. “They cannot just run away and not take responsibility,” he said, adding that construction costs went up by 70% due to the delay.

Work on the building in Jalan Duta began in 1994 and was targeted for completion in 1997. Due to several delays and the appointment of a new contractor, the original cost of RM167mil ballooned to RM287.5mil, with RM64.8mil spent on repairs.

The original contract to PISB was terminated last March and the company ordered to pay late delivery charges of RM41,750 a day for 2,276 days.

In 2004, the shares of PISB were sold to Tajuk Modal Sdn Bhd. In July, K. Hartanah announced that the group was selling Perangsang to a company called Tajuk Modal Sdn Bhd for RM2. Perangsang had net liabilities of RM7.6mil at the end of last year.

The directors of Tajuk Modal are Chong Sang and Yap Fook Sang.

K. Hartanah said it was selling Perangsang as it was in line with the group's scheme of reconstruction, which is to divest non-core businesses, and to streamline, regroup and concentrate on its property development activities.

International Trade and Industry Minister Datuk Seri Rafidah Aziz expressed regret that her ministry had to bear heavy losses as a result of the delay.

"Matrade, apart from having to rent elsewhere, also lost out in terms of opportunity cost. Total rental earnings forgone from the building’s exhibition space was an estimated RM120mil, the equivalent of building another 24-storey building," she added.

As a client, Rafidah said, she was disappointed and wanted the Works Ministry to not only take action against the former PISB directors but also look into the probability of any irregularities during the tender process. While waiting for its new building, Matrade rented premises at Wisma Sime Darby and also a small exhibition hall at Wisma PKNS in Jalan Raja Laut, Kuala Lumpur.

Matrade staff members are expected to move into the new office beginning in July.

Read the earlier article: Matrade RM167 Million Damages

Police HQ Project in Tronoh

It took 18 months to build the $19.183 million Bandar Baru Seri Iskandar Police HQ project in Tronoh, Perak, to this state and it looks completed.

But this project was abandoned in July 2002.

Arcadia Architect's partner, Zulkiflie Amir Samad told Prime Minister Abdullah Badawi that the 11ha project needed a major make-over after vandalism and the ravages of nature caused extensive damages.

It now needs another 15 months to be made fit for occupation after being left dormant (abandoned) since July 2002.

The project architect is Arcadia Architect & Associate.

KLT Dedicated Highway(1)

Civil Engineering Design Consultant, Maunsell Sharma & Zakaria, the consulting firm for the design of Ampang-KL Elevated Highway (KLT) has sued Utusan Melayu (M) Bhd for RM50mil for libel.

Maunsell Sharma & Zakaria Sdn Bhd, filed the suit at the Civil Division High Court registry at Wisma Denmark in Jalan Ampang here yesterday through their lawyer D.P. Vijandran.

In the suit, the firm claimed that the Utusan Malaysia daily had published defamatory words in two page-one articles on Feb 9 and 10.

It said the articles alleged that there were many cracks in the highway and that these were caused by flaws in the engineering design of the highway.

Apart from damages, the company is seeking an injunction, an apology, interest and costs.

Maunsell Sharma & Zakaria is also the design consultant for Middle-ring Road Two (MRR2).

Yesterday, Works Minister Samy Vellu admitted in Parliament that defective design was one of the reasons for the cracks in the Middle Ring Road 2 (MRR2).

"The steel placement did not follow specifications," Samy said in reply to a question from Speaker Tan Sri Ramli Ngah Talib.

Ramli had interrupted Samy Vellu when the minister was giving a technical explanation for the cracks on the MRR2 highway in reply to questions from Datuk Ismail Sabri Yaakob (BN-Bera) and other MPs.

Samy Vellu said his ministry monitored bridges and flyovers but only the MRR2 was found to have "serious defects".

MRR2- Samy said Govt will pay for repair

Samy Vellu said the repairs to the cracks on the Kepong flyover of the Middle Ring Road Two (MRR2) are expected to be completed on June 30.

He said the German consultant firm, Leonhardt Andra and Partners, would complete the repairs in four months.

Samy Vellu said the repairs involved "structural strengthening". "It involved fabrication of the tie frames, better known as steel frames, in Kapar beginning March 1." Samy Vellu said the steel frames would temporarily replace all the crossheads at the flyover during the repair work. "The installation of the steel frames will begin at pillar No. 31 on March 15." Samy Vellu said the Public Works Department (JKR) had submitted the plans to the contractor for work to begin on Feb 27. "Crack mapping is being undertaken in 35 locations, that is 31 piers and two abutments," he said, adding that the procedure had been completed on 14 piers and one abutment.

Samy Vellu said crack mapping would be completed on March 12. Asked whether the flyover would be opened to traffic after June 30, he said the JKR would conduct an investigation and monitoring to determine whether it would be safe for use.

The minister had said earlier that the government would foot the RM40 million cost of repairs and claim the cost from the contractors of the flyover.

The repair was largely due to design problem. The project is a Turnkey-Design & Built Contract costing $238.8 million. Contractually, the contractor is fully responsible for the defects and at such shall be held liable for the damages incurred.

Sukmim, Bumi Hiway and KKM (Wilayah)was the main contractor.

How is it that the government would pay for the repairs? Is the minister nuts?

Matrade RM167 Million Damages

"Even if it has been reduced to a one-sen company, we will go after them. We will go after the parent body and even its subsidiaries. They cannot just run away by reducing the paid-up Capital."

"We will show them what we can do."

- Samy Vellu

Samy Vellu said the government will go all out to pinned-down Perangsang International Sdn Bhd, a subsidiary company of Selangor government Incorporated, and the turnkey contractor for the Matrade Building.

Samy wants to make Perangsang pay RM167 million compensatory damages comprising $97.02 million for non-performance and $72.9 million for remedial works.

Boleh ka? How?

It's a $2 paid-up company! Didn't Samy understand what is $2?

They never reduced their paid-up capital, Samy! It was and had been a $2 company since the day the government decided to award Perangsang International the project.

How is it that the government could award a $167 million contract to a $2 company? Samy should answer!

The legal advisors in PWD should perform their duties by advising their boss about contract law and damage claims.

MRR2 - Cabinet Decides

New twist of events! The Board of Engineers (BEM) on instruction from the Prime Minister Pak Lah had arbitrated on the MRR2 issues and had made the final recommendations to the cabinet.

The events that lead to the Prime Minister's call to BEM to arbitrate arises because of internal disagreement between the boss - Works Minister, Samy Vellu, and his department, JKR on the structural repair reports. Samy wants to follow Halcrow's recommendation for rectification which was purportedly a face-saving (for himself) and will cost less for the contractor Bumi Hiway. Public Works Department (PWD) are convinced that the contract terms stipulate that the Turnkey Contractor is fully responsible and liable to make good the Work in full complaince of the terms of conditions of contract pertaining to design quality specified. PWD thus wants to Contractor to fulfil its obligations and ensure that the flyover meets the qualified quality specified. (read more here)

Based on the contractor's view, the repair works is basically patching and grouting the cracks. Based on Halcrow, it will be slightly more - it include some strengthening works. But based on Kohler & Seitz (the structural engineering consultant from Germany), the repair should be comprehensive to ensure the structural integrity will not be affected over a long term. However, it is estimated to cost RM40 million.

The contractor rejected Leonhardt Andra and Partners's recommendation. Samy was sympathetic towards the contractor and got in Halcrow to conduct another study. However, JKR was of the opinion that Halcrow seemed to suggest limited repair works, suficient to meet the minimum requirement and compliance. JKR was of the opinion that the contract stipulates that it is design and built to the specified and agreed quality and standards and will not accept second best, just because the cost of repair will be mammoth - that's the contractor's problem and if the contractor can convince the government to pay for them using taxpayers money, and if the government agreed, then JKR had to take instruction. Samy seemed to suggest that the government had to step-in to pay for it as it would be too much for the contractor to pay. The cabinet disagreed.

The final decision:


The Cabinet has decided to appoint a German consultant to spearhead repair work on the Middle Ring Road 2 in Kepong.

Works Minister Datuk Seri S. Samy Vellu said today the decision was reached at the last Cabinet meeting and the ministry’s secretary-general is discussing with the consultants on the conceptual layout of the work plan, which will be ready by the end of this month.

"They have assured us that the repair work on 31 pillars would be completed in four- and-a-half months," he said. The cost is expected to be more than RM40 million.

Samy Vellu said the cost was initially estimated to be around RM18 million but it has more than doubled after it was decided that all the 31 pillars need to be repaired simultaneously.

So now, who is going to pay for the repair? BumiHiway of Government?

Maybe, Khairy can mediate and settle in the Malaysia Boleh spirit! Good luck to Bumi Hiway if they can Kau Tim this toy guy.

Read more here:

MRR 2

Samy vs JKR

MRR2 Repair to Begin