DAP wants open tender for Malaysia’s largest expo centre

By Asrul Hadi Abdullah Sani

KUALA LUMPUR, Nov 23 — The DAP has urged the Najib administration to have an open tender for the proposed Matrade expo centre in Jalan Duta after the controversial RM628 million project was given to Naza TTDI in a building-for-land deal.

Petaling Jaya Utara MP Tony Pua said today documents for the project should be declassified if the government fails to re-tender the new expo centre, echoing a similar statement from party leader Lim Kit Siang.

“We call upon Datuk Seri Najib Razak to re-tender the project to select the best contractor or developer who could provide the highest level of services at the lowest possible price in the shortest possible time to ensure that the interest of the government is fully protected," Pua told reporters in Parliament.

Naza-TTDI, a unit of the diversified Naza group, will build the expo centre on a 13.1-acre site in Jalan Duta in exchange for 65 acres of state land at RM226 per square feet (psf) although the market value of the land could reach RM1.5 billion. The entire project will have a gross development value of RM15 billion, the developers said last week.

Pua said the prime minister should also declassify all ministerial papers relating to the project and table it in Parliament to show necessary due diligence has been done to ensure costs and profits were not inflated if they persisted with Naza TTDI as the contractor.

He added that the government is planning on a similar privatisation project which will involve 6.5 million sq ft of land in Jalan Cochrane for an MRCB joint venture worth an estimated gross development value of RM15 billion.

The projects have been announced before in a government stimulus package.

“We must prevent another episode of Port Klang Free Zone which was a privatisation project via direct negotiations mired with incompetence, abuse of power and wanton recklessness, resulting not only in the government purchasing land worth RM10 psf at RM42 psf, and the project cost escalating from an initial RM1.8 billion to a potential RM12.5 billion, all within seven years,” said Pua.

He called on Najib to commit to his promises of open tender to uphold integrity and transparency.

“The late Tan Sri Nasimuddin Amin was infamous for being one of the four AP kings who monopolised the issuance of approved permits from MITI to import foreign cars into Malaysia and made hundreds of millions when the scandal was first exposed in 2005.

“It appears that today his sons, who have taken over the group, have continued the cosy relationship with MITI to be awarded the mega Matrade convention centre without any competitive tender,” he said, referring to the founder of the Naza group.

Pua also revealed that Deputy Finance Minister Datuk Seri Awang Adek was not aware of the project when asked in Parliament.

“He could only reply that he is not aware of the project as this is a privatisation exercise which falls under the office of the prime minister, and directed that I enquire with the PM’s Department instead,” he said.

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