KUALA LUMPUR: Datuk Seri Najib Razak said he was confident that all the necessary processes, procedures and laws had been complied with, in regards to the two pipeline projects mentioned by Finance Minister Lim Guan Eng today.
“I note that (Lim) had stated that all payments were made as per agreement to the China Petroleum Pipeline Bureau (CPPB), a fully-owned subsidiary of one of the largest companies in the world, the China state-owned China National Petroleum Corporation – not to any other parties.
“The two pipeline projects which will be of much economic and energy security benefits to Malaysia were negotiated on a government-to-government basis with the People's Republic of China.
“China's Premier Li Keqiang and I had witnessed the signing of the memorandum of understanding (MOU) for the pipeline projects along with other projects while in Beijing on May 14, 2017.
“At the same event, China had also committed to importing goods worth US$2 trillion over the next five years from Malaysia, invest up to US$150 billion in Malaysia and offer 10,000 places for training and studies in various institutes in China,” he said in a Facebook posting.
Najib said this was on top of the commitment by China that assisted Malaysian oil palm smallholders and contributed to their income and welfare through the purchase of more oil palm.
“While I welcome open and transparent investigations into these two projects, I believe that great care should be taken when making such serious politically-motivated public allegations involving foreign state-owned companies as it may have a negative effect on foreign relations and international trade.”
Najib was commenting on Lim’s press conference in which the latter had said the Finance Ministry’s “red files” had turned up another scandal in the form of two pipeline projects worth RM9.4 billion under Suria Strategic Energy Resources Sdn Bhd, an offshoot of SRC International Sdn Bhd, a former subsidiary of 1Malaysia Development Bhd.
Lim had said that 88 per cent of the value of the two projects had been paid to CPPB even though only 13 per cent of the work had been completed, as payments were based on a timing milestone instead of progressive work done.