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Friday, 22 January 2010

Controversial RM64m train engines buy derailed

MPs have questioned Ong’s role in the deal. — file pic

By Shazwan Mustafa Kamal- The Malaysian Insider

KUALA LUMPUR, Jan 21 — The Transport Ministry has cancelled an order of eight used diesel train engines for its Komuter service worth some RM64 million after pressure and stinging criticism from various quarters, Public Accounts Committee (PAC) chairman Datuk Seri Azmi Khalid said today.

Azmi disclosed that the decision to reverse the order from Spain was made last month but refused to provide details and reasons for the cancellation

“Two things were raised during the meeting this morning. The first issue was the rationale of purchase of [the] DMU [by the Transport Ministry]. Second was the rationale to cancel the purchase,” Azmi told reporters in Parliament House during a lunch break in a PAC meeting.

In the last parliamentary session, Deputy Transport Minister Datuk Robert Lau informed the House that the government had purchased four diesel multiple units (DMUs) for RM30 million. A total of eight DMU trains, worth RM7 million each, were supposed to be purchased by the government.

“The decision to cancel the purchase was made in December, they have their rationale but I can’t reveal it yet as we have asked for more information of what had encouraged them to cancel the purchase. I cannot reveal the details today because we do not the total information,” he added.

According to the PAC chairman, the committee is currently in the process of discussing the matter before making its decision. The PAC investigation will focus on the decision-making process, “especially on the decision to purchase and the decision to cancel.”

Azmi declined to comment on whether new locomotives would be purchased.

“I think they have made certain decisions and I will come back to it later, because we have not concluded [the investigation] yet. KTMB (Keretapi Tanah Melayu Berhad) right now has decided not to go on with the purchase... KTMB is convinced that they can do a lot of refurbishing and a lot of money allocated to refurbish old ones.

“They have now 26 Komuter trains (EMUs), DMUs I am not so sure... now they have also hybrids that can use both. But now there are about 32 that are inoperable because they are in various stages of repair and need to be refurbished,” explained Azmi.

Previous plans to purchase the DMUs from Spain had sparked a wave of protest by members of parliament from both sides of the political divide.

Umno’s Sri Gading MP, Datuk Mohamad Aziz had demanded that the MACC investigate Transport Minister Datuk Seri Ong Tee Keat’s role in the double-tracking project.

Mohamad claimed that the railway board did not authorise the purchase of “out of commission” diesel trains for the project, but Ong had used his “minister’s power” to approve the purchase.

Arau MP, Datuk Ismail Kasim also questioned the purchase of the diesel trains because it did not follow the standards and specifications of the KTMB board.

Ismail pointed that the trains were not approved by the board and the services of the managing director were terminated when the agreement was signed.

PKR’s Bayan Baru MP, Datuk Zahrain Mohd Hashim had demanded that Ong “come clean” on the DMU commuter train purchase.

However, former KTMB managing director Datuk Radzak Abdul Malek has defended the purchase of the used DMUs from Spain, saying it was to overcome a shortage of commuter trains, under an economic stimulus programme.

He had also reiterated transport ministry’s stand, declared in a recent statement, that it had bought the trains at a reasonable price.

Radzak disclosed that the railway company paid less than other countries for the used DMUs.

He previously stated buying the used diesel trains was the fastest way for KTM to solve its problem and dismissed reports that the purchase was against the KTMB board’s decision.

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