Transport Ministry conducts internal inquiry on RM507.77 million dredging contract

The Transport Ministry is conducting an internal inquiry into the handling of documents and awarding of a contract worth RM507.77 million for dredging works at ports in the country.

Its minister, Datuk Seri Liow Tiong Lai said the ministry viewed seriously the details in the 2015 Series 2 of the Auditor-General's Report which exposed the weaknesses in the ministry's procurement system.

He said the ministry would cooperate with the Malaysian Anti-Corruption Commission (MACC) to investigate the matter.

"I have instructed the (ministry's) secretary-general (Datuk Seri Saripuddin Kasim) to immediately carry out an internal inquiry .

"Until now, we have yet to identify any elements of leakage to obtain a real picture of the issue," he told the media at the Parliament lobby today.

However, Liow said the ministry would have problems investigating the matter as it happened about 14 years ago and would need time to trace the documents, including agreement, on the contract.

According to the Auditor-General's Report, the Transport Ministry received 15 bids for the contract to undertake dredging works at ports in the country.

However, all the tenders were cancelled and instead the contract was given to the newly-established company, Malaysian Maritime and Dredging Corporation Sdn Bhd (MMDC). The company was established in June 2002.

The lucrative RM507.77 million deal between the government and MMDC was signed in October 2005.

The contract was for 15 years, effective Oct 19, 2005 to Oct 18, 2020, but the National Audit Department did not find any documents on the procurement of the contract. - BERNAMA