All airport projects frozen because of Covid-19, Guan Eng told
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A visualisation by Malaysia Airports Holdings of the proposed expansion of Penang airport’s main terminal Malaysia Airports pic |
PETALING JAYA: Transport Minister Wee Ka Siong has rejected a claim by DAP secretary-general Lim Guan Eng of the federal government’s act of “political vengeance” by cancelling a proposed expansion of Penang airport.
In a Facebook posting, Wee also questioned Lim’s claims that he had allocated RM800 million in the 2020 Budget for the project. “Please point out the page or paragraph in the 2020 Budget speech,” he said, adding there was no mention of the matter.
Wee said airport concessionaire Malaysia Airports Holdings Berhad (MAHB) had confirmed that no allocations were provided by the previous administration to upgrade Penang airport. The company said it had planned to use its own reserves to fund the project.
Lim had said in a report by DAP organ Roketkini that the airport project was being cancelled along with a proposed Penang Hill cable car project as a form of political vengeance.
In a Facebook posting, Wee also questioned Lim’s claims that he had allocated RM800 million in the 2020 Budget for the project. “Please point out the page or paragraph in the 2020 Budget speech,” he said, adding there was no mention of the matter.
Wee said airport concessionaire Malaysia Airports Holdings Berhad (MAHB) had confirmed that no allocations were provided by the previous administration to upgrade Penang airport. The company said it had planned to use its own reserves to fund the project.
Lim had said in a report by DAP organ Roketkini that the airport project was being cancelled along with a proposed Penang Hill cable car project as a form of political vengeance.
Wee said he had previously explained in Parliament that all airport expansion and development projects had to be postponed because the Covid-19 pandemic had badly affected civil aviation, with full recovery only expected in two years.
“In the meantime the transport ministry will carry out a National Airport Strategic Plan study for the existing 42 airports,” he said, and added, “Surely (neither) the ministry nor the government is carrying out political vengeance on all states with airports.”
Wee said MAHB had suffered losses of more than RM1 billion by sustaining airport operations since restrictions on travel and public activities were imposed since March.
The company should have the right to make adjustments to their spending to face the post-Covid-19 era, he said.
The exchange between the two political rivals came hours after former prime minister Najib Razak had asked for an investigation into possible abuse of power by the previous government over the sudden departure of a top official of MAHB.
Najib had also suggested there was a link to a proposal to privatise the airport project to a developer on a 30-year concession.
“In the meantime the transport ministry will carry out a National Airport Strategic Plan study for the existing 42 airports,” he said, and added, “Surely (neither) the ministry nor the government is carrying out political vengeance on all states with airports.”
Wee said MAHB had suffered losses of more than RM1 billion by sustaining airport operations since restrictions on travel and public activities were imposed since March.
The company should have the right to make adjustments to their spending to face the post-Covid-19 era, he said.
The exchange between the two political rivals came hours after former prime minister Najib Razak had asked for an investigation into possible abuse of power by the previous government over the sudden departure of a top official of MAHB.
Najib had also suggested there was a link to a proposal to privatise the airport project to a developer on a 30-year concession.
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Earlier, FMT:
Najib calls for probe over Penang airport expansion project
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The Penang International Airport expansion project had been approved by Najib Razak’s previous administration in 2017 Bernama pic |
PETALING JAYA: Former prime minister Najib Razak has urged the government and the Malaysian Anti-Corruption Commission to probe the proposed privatisation of the Penang International Airport (PIA).
In a Facebook post in which he attached letters between a private company and a former Malaysia Airports Holdings Bhd (MAHB) top official, Najib claimed that the top executive’s sudden departure may have been linked to the project.
He said the PIA expansion project was approved by his administration in 2017 and the plan was to expand its capacity from 6.5 million passengers a year to 12 million.
MAHB was instructed to begin work on the expansion in 2018, but Najib said that after the 14th general election, the project was put on hold as the government claimed it had no money to fund the estimated cost of over RM1.2 billion.
A private financing initiative (PFI) was then mooted to reduce the government’s burden.
But, Najib said the claim about the lack of funds was without basis as it was MAHB which would foot the bill and it had the financial ability to do so as it made profits of over RM1 billion a year, and had cash reserves in excess of RM2 billion.
“It is not the government who pays (for the expansion). MAHB pays,” he said.
He attached a letter, purportedly from a private developer with a strong presence in Penang, proposing a PFI for the expansion project.
Najib said MAHB, however, resisted plans for privatisation and insisted on wanting to fund the airport expansion on its own to a capacity of 12 million at a cost of RM800 million rather than RM1.2 billion for a 16 million capacity.
He said MAHB’s former group CEO Raja Azmi Raja Nazuddin even announced on Dec 25 last year that the PIA expansion would begin soon.
In a Facebook post in which he attached letters between a private company and a former Malaysia Airports Holdings Bhd (MAHB) top official, Najib claimed that the top executive’s sudden departure may have been linked to the project.
He said the PIA expansion project was approved by his administration in 2017 and the plan was to expand its capacity from 6.5 million passengers a year to 12 million.
MAHB was instructed to begin work on the expansion in 2018, but Najib said that after the 14th general election, the project was put on hold as the government claimed it had no money to fund the estimated cost of over RM1.2 billion.
A private financing initiative (PFI) was then mooted to reduce the government’s burden.
But, Najib said the claim about the lack of funds was without basis as it was MAHB which would foot the bill and it had the financial ability to do so as it made profits of over RM1 billion a year, and had cash reserves in excess of RM2 billion.
“It is not the government who pays (for the expansion). MAHB pays,” he said.
He attached a letter, purportedly from a private developer with a strong presence in Penang, proposing a PFI for the expansion project.
Najib said MAHB, however, resisted plans for privatisation and insisted on wanting to fund the airport expansion on its own to a capacity of 12 million at a cost of RM800 million rather than RM1.2 billion for a 16 million capacity.
He said MAHB’s former group CEO Raja Azmi Raja Nazuddin even announced on Dec 25 last year that the PIA expansion would begin soon.
But 12 days later, Raja Azmi resigned after less than a year into his appointment.
“I think it is best if the Perikatan Nasional government and MACC investigate,” he said.
https://www.theedgemarkets.com/article/proposed-kulim-airport-project-cost-rm68-bil-%E2%80%94-mustapa
ReplyDeleteWell... I know for sure Wee Ka Siong is bull-shitting as far as All airport development projects being frozen because of Covid-19.
Because the development of the new Kulim Airport in PN controlled Kedah is going full speed ahead as made clear by the Real Minister with power, only recently.
Wee Wee can only piss in the wind.
https://www.nst.com.my/business/2020/04/583867/mahb-reduce-spending-preserve-cash
ReplyDeleteThief conveniently ignored the fact that MAHB was already heavily in debt even before Covid-19 hit.
The then private finance initiative was a proposal to develop Penang Airport without adding to its debt burden.
MAHB of course objected to anyone encroaching on its "Turf".
Thief conveniently ignored the fact that , under his watch, an entire airport was privatised to a crony - Johor Bahru Airport to Syed Mokhtar Bukhary.
Jibby, already convicted and sentenced for corruption, "exposing" and asking MACC to investigate corruption? What irony.
ReplyDeleteI wonder why KT wants to give megaphone to such an unsavory character like Jibby? KT should be reminding us of his crimes instead - abuse of power, breach of trust and money-laundering involving pensioners life savings.
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Unsavoury company!
Star Online - Former Petrosaudi exec Xavier Justo meets Dr Mahathir (extracts):
PETALING JAYA: Swiss national Xavier Andre Justo, a former Petrosaudi International official met Tun Dr Mahathir Mohamad on Sunday (May 20).
He posted a photograph of himself with Dr Mahathir on Facebook and expressed his awe at meeting the Prime Minister.
"What a great privilege and what an incredible moment!" he wrote.
Justo is a key figure in the 1Malaysia Development Berhad (1MDB) case and was said to have shared information on 1MDB with Sarawak Report editor Clare Rewcastle-Brown.
It's a shame the Star Online has been reluctant to tell us who exactly Xavier Andre Justo is.
Justo was a convicted blackmailer but has since been 'royally' pardoned by HM the King of Thailand.
Justo was found guilty in 2015 by a Thai court of blackmailing his former employer which was involved in a now-aborted deal with 1MDB. He allegedly leaked details that led to claims that billions of ringgit were misappropriated at 1MDB.....
....Sirul and now Justo! Hmmm, most unsavoury company. I wonder why the new PM even wants to stand next to this ex convict?
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But Wee KHAT Siong kwai kwai agree to re-route ECRL,to include Kelantan, bypass Negeri Sembilan and thereby increasing the project cost again.
ReplyDeleteWas this cost increase in budget in the 2020 or any budget? Please show page and line number...?
This is further proof that Wee KHAT Siong is practicing revenge politics.....he supports Kedah's Kulim Airport project which is only a short distance away from Penang's PIA.
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Technical panel formed to speed up Kulim airport project
Bernama -August 23, 2020
ALOR SETAR: A technical committee has been set up to expedite proposals for a new international airport in Kulim, said Kedah Menteri Besar Muhammad Sanusi Md Nor today.
He said the committee was formed at a meeting with transport minister Wee Ka Siong in Putrajaya last Friday. It comprises members of the state government, the Northern Corridor Implementation Authority and the transport ministry.
“This technical committee will make a recommendation for a working paper (regarding approval for the project) to be presented again to the National Physical Planning Council,” he told reporters today.
He said after the council provides its feedback, the transport ministry would then produce a proposal to be tabled before the Cabinet for approval.
Muhammad Sanusi said all proposals must be approved by the council before they were brought to the Cabinet. However the proposal paper for the Kulim airport project could not be tabled because the transport ministry had not finalised the National Airport Strategic Plan study.
A finalised study is a prerequisite of any proposal for the construction of new airports to be considered.
The study covers the development of all airports, as well as short take-off and landing airports (STOLports), to oversee their roles, airspace requirements as well as economic and strategic impact.
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