Ismail Sabri Must Explain Rationale Behind Revival Of Gas Pipeline Project Ngo

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Prime Minister Ismail Sabri Yaakob must explain the rationale behind Putrajaya's decision to reinstate Trans Sabah Gas Pipeline (TSGP) project in February, said Transparency International Malaysia (TI-Malaysia).
In a statement today, the anti-corruption NGO found it troubling that the Perikatan Nasional administration is now reviving the project without any clear explanation as to its financial viability.
"Ismail Sabri leads at a time when it is paramount to restore trust in the government’s ability to deliver projects that truly benefit citizens.
"After all, financing for these projects is derived from public funding, which eventually is the rakyat’s money.
"He must go the extra mile to show that government projects are undertaken for the benefit of the rakyat and not be misused for personal benefit,” said TI-Malaysia president Muhammad Mohan.




TI-Malaysia president Muhammad Mohan
"We call on the government to clarify the reinstatement of the TSGP project and the further study and possible continuation of the Multi-Product Pipeline (MPP)."
"These two projects, which were initiated under the previous BN administration, were cancelled by the Pakatan Harapan government in August 2018 due to the government’s fiscal position."
"The fact that the previous government saw it fit to continue this project with little transparency on the terms for ensuring scheduled fulfilment and fair payment is telling of the administration’s attitude towards issues of misconduct in government projects," he said.
Public viewing
"We want the government to commit and practise greater transparency and accountability in government procurement," he said, adding that the detailed cost-benefit analysis reports must be available for public viewing.
"Megaprojects such as the TSGP project should have internationally benchmarked integrity pacts, which require independent oversight of government procurement and project delivery.
"The National Anti-Corruption Plan 2019-2023 endorses the use of integrity pacts to strengthen public procurement, but a paper pact is powerless without government commitment to allow third-party monitoring," he said.
The TSGP and MPP pipeline projects were cancelled in 2018 when Harapan was in power.
The construction of the TSGP and MPP was approved by the previous BN administration, which awarded the projects to China Petroleum Pipeline Bureau in November 2016.
Sole purpose
The project was undertaken by Suria Strategic Energy Resources (SSER) - a fully-owned subsidiary of the Finance Ministry set up in 2016 for the sole purpose of overseeing the implementation of the TSGP and MPP.
The 662km TSGP would have stretched from the Kimanis Gas Terminal to Sandakan and Tawau. The 600km MPP would have connected various petrochemical projects in Malacca and Port Dickson, Negeri Sembilan to Jitra, Kedah.
A total of RM8.3 billion - 88 percent of the construction cost - was paid out for the two projects, despite just 13 percent of work completed.
SSER was fined for failing to comply with Bank Negara conditions in relation to the pipeline projects in 2019.
It was recently revealed that former prime minister Muhyiddin Yassin had secretly revived both projects in February. - Mkini

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