A NON-GOVERNMENTAL organisation (NGO) has urged Pengurusan Air Selangor Sdn Bhd (Air Selangor) to review its RM1.96 bil construction contract to Gamuda Bhd for the Sg Rasau water treatment plant in Selangor.
This is because the contract is awarded in haste and involves a large sum of money, said Otai Reformis.
In a statement on July 1, Gamuda Bhd had announced that it received a letter of acceptance for the award of the Sg Rasau water supply scheme (stage 1) project, also dubbed “Package 1: Design and build of proposed Rasau intake, raw water pumping mains, water treatment plant and associated works” from Air Selangor.
The project includes the design and build of an intake structure with 1,400 million litre-a-day (Mld) capacity to draw augmented raw water from the ex-mining ponds at Taman Putra Permai, Puchong, as well as a 700 Mld water treatment plant near Tanjung Dua Belas.
Other structures include a 2.4m diameter twin-pipe connecting the intake structure and the water treatment plant and two overhead bridges crossing the Elite Highway and SKVE Highway.
The Sungai Rasau water treatment plant project brings Gamuda’s total construction orderbook to a fresh record high of RM14.4 bil.
“The contract-awarding procedure is not transparent as it does not involve ‘open tender’, and as Air Selangor is a wholly-owned subsidiary of the Selangor state government, the awarding of this contract should get the approval of the Selangor state assembly,” said Otai Reformis secretary Abdul Razak Ismail.
Abdul Razak also said that there was a conflict of interest as the Selangor state government had, in August 2018, paid RM2.55 bil for the acquisition of the Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) water treatment plant in Bestari Jaya.
According to The Edge Markets, SPLASH Holdings is owned by Gamuda Bhd (40%), Kumpulan Perangsang Selangor Bhd (KPS) (30%) and Sweet Water SPV Sdn Bhd (30%).
“In these times of economic uncertainties when we are faced with the rising price of essential goods, the Selangor state government seems to be on a shopping spree to finish its annual allocation,” said Abdul Razak.
“Furthermore, building a water treatment plant is not a specific project as many other local companies can also afford to take on the project, which is why the open tender system should have been used to secure a more reasonable price.”
The NGO further noted that the water supply around Klang is adequate for the next few years if Air Selangor does not constantly halt operations due to pollutions, among others.
“This is why the Sg Rasau water treatment plant does not need to be expedited unless the state government is up to their tricks,” Abdul Razak opined.
“What is clear from news reports in the past few weeks is that big projects such as the RM787 mil refurbishment of the Shah Alam Stadium and the construction of the Sg Rasau water treatment plant are expedited projects so that the state government can finish spending all the state treasury funds before the next general election.
“We suggest that Datuk Seri Anwar Ibrahim and the PKR leadership take this matter seriously as there is a lack of transparency and governance violation in the awarding of these big projects by the Selangor state government.” – July 20, 2022
Main photo credit: Malaysiakini
