Tuesday, June 19, 2007

Mega pipeline under ‘loss-making company'


Beh Lih Yi
Jun 20, 07 10:39am
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The DAP has cast doubts on the financial capability of the company - linked to a high-profile ex-politician - which will undertake the RM23.9 billion oil pipeline project.

Its search of records filed with the Companies Commission of Malaysia (CCM) has revealed that Trans-Peninsula Petroleum Sdn Bhd - which has a paid up capital at RM150,000 - had reported accumulated losses of RM155,376 as at June 30 last year.

“This must be a record for a company with a RM150,000 paid up capital to carry out a RM23.9 billion project,” DAP secretary-general Lim Guan Eng quipped at a press conference held at the party’s headquarters in Petaling Jaya yesterday.

“Can a company of that size take on such a big project?”

He urged Prime Minister and Finance Minister Abdullah Ahmad Badawi to explain the decision.

Lim said the records with CCM also showed that one of the three directors with the loss-making company is former Kedah Menteri Besar Osman Aroff.

Two other directors are identified as Syed Izhar Syed Salleh and Mohd Kamil @ Rahim Kamil Sulaiman.

Breach of law?

In early May, Abdullah confirmed Malaysia would proceed with the RM24 billion pipeline to transport Middle East oil across the north of its peninsula to East Asian countries.

The deal was inked on May 28, witnessed by Abdullah and his Indonesian counterpart Susilo Bambang Yudhoyono.

The construction of the 312km crude-oil pipeline will traverse three northern states - Kedah, Perak and Kelantan.

The DAP’s questioning of the company financial competence came after the opposition party claimed that the Environmental Impact Assessment (EIA) report is not available on the project.

Yesterday, Lim said Department of Environment (DOE) director (assessment) Halimah Hassan had written to him on June 13, confirming that the EIA report has not been submitted.

“She said the report will be publicised in local papers and that a public review (will be) sought after the EIA report has been submitted to the DOE by the developers.

“Obviously, the construction project has not fulfilled the requirements of the Environmental Quality Act 1974. How was approval be given even before the EIA has been submitted for approval by the DOE?”

Previously, the DAP had voiced concern about the environmental impact and land problems associated with the construction of the oil pipeline.

It will pass through fishing ports, padi farms, forest reserves, the Temenggor lake, areas with tourist attractions and populated areas.

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