Ka Siong told to resign as transport minister for failing to prove KVDT2 project overpriced

KUALA LUMPUR, Aug 26 — DAP national chairman Lim Guan Eng today called for Transport Minister Datuk Seri Wee Ka Siong’s resignation for failing to prove his claim against former transport minister Anthony Loke that Pakatan Harapan’s (PH) price tag of RM4.475 billion for the Klang Valley Double Tracking (Phase 2) (KVDT2) project was overpriced.

In a statement, Lim referred to a written parliamentary reply from Wee to Loke on August 3 in which Wee said the KVDT2 project will continue at the same cost of RM4.475 billion with the same contractor Dhaya Maju LTAT Sdn Bhd.

"Loke is correct in that Wee lied when he attacked the PH government by saying that despite a RM725 million reduction from the Barisan Nasional’s government’s original price tag of RM5.2 billion, the PH government’s new price tag of RM4.475 billion was overpriced and too expensive.

"The BN administration had awarded the KVDT2 project to Dhaya Maju LTAT Sdn Bhd at a price of RM5.2 billion on April 5, 2018, one day before then prime minister Datuk Seri Najib Razak dissolved Parliament to hold the 14th General Election,” he said.

He added that the PH government had to stick to the agreement as a letter of award had already been issued.

In the event of a letter of award being terminated, the government may need to pay up to RM3 billion in compensation.

"The PH Finance Ministry agreed with Anthony Loke and after direct negotiations, managed to bring down the price tag to RM4.475 billion from RM5.2 billion.

"When Wee tried to issue a new open tender, DM-LTAT, a joint-venture between Dhaya Maju and the Armed Forces Fund Board (LTAT), sued the government.

"The Transport Ministry then made a U-turn to back down and agreed to allow the same contractor to continue at the same price-tag of RM4.475 billion negotiated by the PH government,” he said.

After the collapse of the PH government in 2020, Wee took over as transport minister and said the KVDT2 project would be reopened for tender, before mocking Loke for not choosing this "cheaper” option.

Earlier this month, Loke acknowledged that this was technically cheaper but said he was informed that there would be legal issues in calling for a fresh tender, including the need to compensate Dhaya Maju.

He also noted that Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz had in 2020 used the project as an example of PH’s penchant for direct negotiation.

But with Wee’s written parliamentary reply that the project was being continued at the same cost with no material changes, Loke said that Wee should "eat his own words”.