An upset Tee Keat clarifies EMU procurement

An upset Tee Keat clarifies EMU procurement

Thu, 01 Jul 2010 14:42 

By FMT Staff

PETALING JAYA: Former transport minister Ong Tee Kiat said he was miffed at being asked to explain the hike in the price of Electric Multiple Units (EMU) procured by the government.

In his blog posting today, Ong said he has no intention of becoming a spokesperson for the transport ministry but he is upset the issue has been used for “instant noodle partisan politics”.

Ong, who is also the Pandan MP, was asked in Parliament yesterday regarding the procurement of 38 sets of six-car EMUs at an increased price of RM500 million.


“The 2008 (KTM) Kereta Tanah Melayu Bhd tender for the original eight sets of three-car wagons was cancelled due to new demands imposed under the National Key Results Area (NKRA),” said Ong.
“As per the new demand, the ministry had to purchase the new wagons which of course came at an additional cost.”Ong also pointed out that direct negotiations for the procurement of the EMUs were not endorsed by the transport ministry in the first place.“It was the ministry of finance that directed and endorsed the procurement,” he said.

Yesterday, PAS MP Dzulkefly Ahmad queried the inflated costs of the EMU procurement and the government's rationale on speeding up the deal under the NKRA requirement.
He alleged that the new procurement price will cost the taxpayers about RM500 million.