MRT2 fiasco: Minority shareholders have rights too
FocusM | 02 Nov 2018 00:30
It has become clear that despite the government’s decision to continue with the MRT2 underground works, MMC-Gamuda shareholders will receive the short end of the stick.
That’s because the further cost reduction offered by the company to the government means it will have to carry out the remaining 60% of the underground portion of the project at nearly 38% or RM3.6 bil cheaper. If we recall, MMCGamuda had earlier agreed to bring down the cost by RM2.3 bil but the Ministry of Finance (MoF) insisted it was insufficient.
The MoF even said it was meaningless to continue the project beyond the RM2.3 bil cost reduction offered by MMC-Gamuda. Tony Pua, the political secretary to the Minister of Finance, claimed a study showed that the potential cost savings could be between RM4.19 bil and RM5.79 bil for 60% of the remaining works.
However, Pua didn’t explain why the MoF was reluctant to appoint an independent international consultant to ascertain the actual cost. Then, even as negotiations were ongoing, the MoF abruptly terminated the underground portion of the project.
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