• Abandoned RM8.48 million multi-story carpark at KTM Serdang shows that the ‘open tender’ system being practiced by the BN is totally ineffective and fails to cut down on wastage

    Media Statement by Dr. Ong Kian Ming, MP for Serdang, on the 14th of March, 2014 in Serdang

    Abandoned RM8.48 million multi-story carpark at KTM Serdang shows that the ‘open tender’ system being practiced by the BN is totally ineffective and fails to cut down on wastage

    The construction of a RM8.48 million multi-storey carpark next to the KTM Serdang station was supposed to have been completed on the 2nd of August 2012, according to the tender result published on the website of the Railway Asset Company (Perbadanan Aset Keretapi) (Appendix 1 below).[1] This was also announced by Serdang BN Chairman, Datuk Liew Yuen Keong in a newspaper report on the 11th of March, 2011.[2] Unfortunately, work has stopped on this project even before I was elected into office as the Member of Parliament for Serdang on the 5th of May. 2013.

    I failed to obtain any reply from KTM despite writing directly to them. Therefore, I asked a parliamentary question and obtained my reply (Appendix 2). According to the parliamentary reply, this project was supposed to have been completed on the 2nd of January, 2013. This is inconsistent with the tender announcement found in Appendix 1 below. This reply also stated that the company that was awarded this contract failed to complete this project because of financial problems. They were charged liquidation and ascertained (LAD) charges of RM318,940.96 for late delivery between the 3rd of January and the 29th of July, 2013, a period of 208 days. In addition, the deposit of RM424,000 or 5% of the value of the contract was also confiscated from the company.

    The parliamentary reply did not state the name of the company. Only though the tender documents was I able to confirm that the name of the company was Anjung Global Sdn Bhd. According to the company profile of Anjung Global (attached below), the nature of business of this company was ‘General Maintenance and Cleaning Services’. In the latest filing to the Companies Commission of Malaysia (SSM), which was in 2009, the revenue of Anjung Global was RM3.2 million, which is less than half the value of the KTM Serdang multi-story carpark contract. In addition, Anjung Global’s reserves was in the negative (minus RM107,293).

    How did a company whose main business is general maintenance and cleaning, which last filed its company returns in 2009, and with negative reserves manage to be awarded this RM8.48 million contract? If this is reflective of the ‘open tender’ process undertaken by the BN government as part of its ‘Government Transformation Program’ (GTP), then it is not surprising that this government has failed to cut down on wastage. The National Audit Report has highlighted many bigger examples. This multi-storey carpark at KTM Serdang is a much more visible example of yet another project by the BN government – “Satu Lagi Projek Kerajaan Barisan Nasional” – that has wasted taxpayer’s funds (See pictures in Appendix 3).

    Because of the failure of Anjung Global to complete this multi-storey carpark, yet another ‘open tender’ was called. The contractor was supposed to have been selected on the 27th of February, 2014. Work is supposed to start on the 17th of March 2014 and completed within 12 months, on the 16th of March 2015. I will be monitoring the construction process very closely to see if this will be another case of a poorly chosen contractor who will fail to deliver the final product.

    In the meantime, the people of Serdang will not be able to find sufficient parking near the KTM station and the illegal parking along the Jalan Sungai Besi highway will continue to cause traffic jams for the residents.

    Dr. Ong Kian Ming
    Member of Parliament for Serdang

    Attachments:

    1) KTM Serdang Tender Result from Perbadanan Aset Keretapi

    2) Anjung Global Sdn Bhd Company Profile from CCM

    Appendix 1: Tender Result for the Building of a Multi-Story Carpark at KTM Serdang

    Appendix 2: Parliamentary Reply regarding the abandoned multi-story carpark next to KTM Serdang

    Appendix 3: Photos of the Abandoned Multi-Storey KTM Serdang carpark

     

1 Comment

  1. Melissa says: January 26, 2017 at 6:49 pmReply

    Almost 2 years after the expected completion date of march 2015, the car park remains in-opened. Would you know the reason for this?

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