MACC tells MRT Corp to reject Alstom bid

KUALA LUMPUR, Jan 14 — The Malaysian Anti-Corruption Commission (MACC) has advised MRT Corp against accepting a bid from French engineers Alstom to take part in the construction of the country’s multi-million ringgit Klang Valley Rapid Transit (KVMRT) project as the company was still under investigation for alleged corruption.

The RM40 billion KVMRT, meant to ease traffic congestion in the Klang Valley, is Malaysia’s most expensive infrastructure project to date.

Artist’s impression of an MRT station.Artist’s impression of an MRT station.MACC deputy chief commissioner Datuk Sutinah Sutan said yesterday that MRT Corp should not compromise its project with a company which had been fined for corruption.

“MRT Corp has been advised against considering a bid from Alstom, the MACC is still investigating the company,” Sutinah was quoted by Utusan Malaysia as saying.

The French firm was fined RM130 million by the Swiss Attorney-General last year for failing to prevent bribery by its employees in Malaysia, Latvia and Tunisia.

Sutinah was also quoted by The Star yesterday commending MRT Corp for allowing the graft-busting agency to be “directly involved” in the KVMRT project.

She said that besides monitoring procurement processes, the MACC would also offer MRT Corp advisory and training services.

MRT Corp CEO Datuk Azhar Hamid said his company took notice of MACC’s advice and would refer the matter to the federal government.

“Ultimately we will refer the matter to the government because it is a big decision with a lot of implications. We will have to handle this with care and with the highest degree of seriousness,” The Star quoted him as saying.

Alstom was awarded a RM2.8 billion contract by Tenaga Nasional earlier last year to provide key power generation equipment to Southeast Asia’s first 1,000-megawatt (MW) supercritical coal-fired power plant in Manjung.

It also won turnkey contracts in 1994 and 2000 to build four power plants including the 1,300MW Lumut and the 670MW Kuala Langat plants and deals in 2003 and 2004 to install environmental control systems for the Tanjung Bin and Jimah coal-fired power plants.

Alstom was also appointed by Tenaga to supply two 125MW hydro power turbines, a generator and ancillaries for the 250MW Hulu Terengganu hydro power plant in 2010.

Alstom says it is “the largest original equipment manufacturer in Malaysia”, having supplied key equipment for nearly 7.5 gigawatt (GW) of the country’s installed power generation capacity.


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