The cancelled pipeline projects are the Trans-Sabah Gas Pipeline and the Multi-Product Pipeline.
China Petroleum Pipeline Engineering Co Ltd and Huanqiu Project Management Co Ltd were paid RM8.3 billion, or 88% of the engineering, procurement, construction and commissioning contract value, despite only 13% of the work purportedly done.The payment was made by Suria Strategic Energy Resources Sdn Bhd , a subsidiary of the finance ministry, from borrowings guaranteed by the government.
“The Attorney-General’s Chambers is heading the negotiation on behalf of the government and will be recommending to the government the next steps to take,” he said in a statement today.Earlier reports said MPP would have involved 600km of pipeline of various petrochemical projects from Melaka and Port Dickson in Negeri Sembilan to Jitra in Kedah at a cost of about RM5.35 billion.
Lim said the projects would have been “extremely lucrative” for the contractors because payments were made based on timeline progress regardless of work progress done, if any.