GEORGE TOWN: Parti Cinta Malaysia lodged a police report here yesterday calling for an investigation into the state governments' ambitious Penang Undersea Tunnel and three paired roads project.
Its president Datuk Huan Cheng Guan said that he was shocked to read a statement by the Barisan Nasional Strategic Communications (BNSC) team claiming that the project's special purpose vehicle (SPV) company was undercapitalised by 1,900 times, below the minimum required by the Public Works Department.
"These claims are serious and if true, I believe the state government had lied to the people and misused its powers in awarding the project to the company.
"There should, therefore, be a thorough police investigation into this matter, so that the truth will be revealed to the people," he told reporters at the Prangin Mall here today.
In a statement dated July 15, BNSC deputy director Datuk Eric See-To expressed concern that the SPV company, which was awarded the project, was a new entity with low cash balances and paid-up capital in relation to a mega project.
He alleged that the SPV company’s paid-up capital was only RM100,000 when it was awarded the Undersea Tunnel project in March 2013.
This is against the Works Ministry guidelines, which makes it compulsory for contract bidders to show financial strength of at least three percent of the contract value when conducting a financial evaluation for a Request for Proposal (RFP).
Bidders unable to meet this requirement would be automatically disqualified by the Works Ministry.
Then Penang Undersea Tunnel project is estimated to be cost RM6.3 billion.