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OilMonster

Natural Gas June 06, 2018 01:30:55 AM

Malaysia’s Finance Ministry Unearths S$3.2b Gas Pipeline Scandal

Anil
Mathews
OilMonster Author
Both projects were approved by the Cabinet in July 2016, under the previous Barisan Nasional administration.
Malaysia’s Finance Ministry Unearths S$3.2b Gas Pipeline Scandal

SEATTLE (Oil Monster): Malaysia's Finance Ministry has discovered dubious payments made in two pipeline projects, with nearly 90 per cent of the contracts worth RM9.4 billion (S$3.2 billion) being paid out but only 13 per cent of the work being completed.

The projects - one multi-product petroleum pipeline running from Melaka and Negeri Sembilan to Kedah, and a gas pipeline from Kimanis to Sandakan and Tawau, all in Sabah - were handled by Suria Strategic Energy Resources (SSER), a wholly owned subsidiary of the Ministry of Finance.

Both projects were approved by the Cabinet in July 2016, under the previous Barisan Nasional administration.

They are believed to form part of the projects kept as "red files", hidden away from the scrutiny of most Treasury officials during the administration of former premier Najib Razak. Datuk Seri Najib was also Finance Minister during his nine years at the helm.

"I have instructed my officers to file a report with the Malaysian Anti-Corruption Commission," said new Finance Minister Lim Guan Eng in a statement issued on Tuesday (June 5).

Mr Lim said he is calling on former Treasury secretary-general, Tan Sri Irwan Serigar Abdullah, and Mr Najib to explain the deal.

"The Board of Directors (of SSER) and Tan Sri Irwan Serigar in particular, must answer as to why SSER signed such a lopsided contract that clearly jeopardises the interest of the Malaysian people and government.

"In addition, we would seek the assistance of former Finance and Prime Minister, Datuk Seri Najib Razak, who has been active on Facebook recently, to explain how he could possibly approve the above transactions,” Lim said.

 Courtesy: www.straitstimes.com

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