After BUCG’s removal…

50
847

Interesting to see the Penang state government asking BUCG of China to take responsibility for an accident in KL last month or withdraw from the Penang tunnel, three highways and property development projects.

A crane operated by the firm fell and crushed a woman to death in the incident in KL. The Penang state government has since consented to the removal of BUCG from the project.

If that’s the criteria, the state government should also find out the outcome of investigations into three other incidents, this time involving the MRT project in Kuala Lumpur, where Gamuda is involved as the project delivery partner.

See these news reports:

24 February 2016 – A worker of a construction company, a subcontractor for the MRT project, was killed after he was pinned down by steel while installing the ceiling at the Kwasa Damansara station construction site in Kota Damansara here today.

24 May 2015 – A Bangladeshi worker died while working at the Tun Razak Exchange station site of the Klang Valley MRT – the first underground fatality since the project started in 2012. Saifikul, 28, who worked for SP Mega Sdn Bhd, the subcontractor engaged by the main contractor MMC Gamuda KVMRT (T) Sdn Bhd for reinforced concrete, was dismantling temporary structures at the station when concrete slabs fell on him at 1.15am Sunday.

27 February 2015 – One Bangladeshi worker died while another was injured in an accident at the Semantan Portal Mass Rapid Transit (MRT) construction site today.

READ MORE:  Flashback: Cracks spotted along Batu Ferringhi road

We need to know the outcome of the investigations into these incidents – before any agreement with SRS Consortium (in which Gamuda has a 60 per cent stake) is signed in Penang. SRS has come up with a RM46bn transport proposal for Penang.

Please help to support this blog if you can.

Read the commenting guidlelines for this blog.

50 COMMENTS

  1. Accident which led to death of the worker(s) inside the construction site is quite different from carelessness of firm/worker which led to death of innocent citizen(s) who are not inside the construction site………

    I also wonder why family members of the victim can easily forgive BUCG?

    • This means pg lang allow contractor to do the contractor’s my way. The same if Calvin’s bn no see, no hear and no touch on an accident which can hurt any pg lang. Pg forum complain if state go take no action. Also complain if state take action. Best pg lang no complain if federal takes no action as safety and industrial accident under ohs

      • LSS has been misleading his readers that the 110 acre land (worth 6.34 Billion) has been prepaid for the Penang Undersea Tunnel project even before the project started. When the truth is
        1) 3.67 acre land paid in 2015
        2) 4.43 acre land to be paid in 2016
        3) 50 acre land to be paid when the said land is reclaimed (earliest early 2018)

        Those lands are paid to the CZBUCG, then transfer hands to Ewein-Zenith who pays cash to CZBUCG to finance the projects. Ewein-Zenith only can receive those lands AFTER the state pays it…

        In other words, only 3.67 acre land has been paid thus far.

        Also, LSS has been spinning about the lands worth RM457 psf were then sold to Ewein-Zenith for RM1,200 psf for major profit. Truth is, the TP1 land was valued at RM457 psf in 2014. And will be paid to CZBUCG according to value of RM840 psf… Whereas TP2 land has yet to be reclaimed (so value unknown), and will be paid to CZBUCG according to value of RM1200 psf. Ewein-Zenith will buy those lands at the same value from CZBUCG. In both cases, the state gov is maximising the value of the land.

  2. Tokong spins so much that even DAP-friendly MalaysiaKini cannot tahan. In the same article this morning, Mkini cast doubts on Tokong’s real reason for removing BUCG using the word “supposedly”.

    3 years ago, the Penang Govt defended awarding the RM6.34 billion project saying that BUCG will have a 10% shareholding in the consortium and that it has a strong track record and strong financial strength to deliver the project whereas Zenith itself is not as strong financially.

    But a few months ago, it was found out the BUCG only has 1,000 shares out of 17 million shares – a 0.0057% shareholding in the CZBUCG consortuum despite what the Penang Govt officially said 3 years ago .

    The State Govt also said two other shareholder would have 10% each but this was again found to be false. Juteras had 0.863%while Sri Tinggi was entire missing and has zero shares.

    The Penang Govt has not been able to answer this then.

    Questions are now being raised if this material change in the project structure compared to the basis when awarding this project would mean the award should be cancelled.

    Meanwhile, after 3 years the CZBUCG consortium have yet to start construction, is unable to produce the RM305 million studies to the Works Minister, have been slammed in the Penang Assembly by their own Pakatan ADUNs, have posted extraordinarily high profits in it last FY2015 accounts and have sold or pre-sold billions of ringgit of Penang State land and land rights.

    Many have also found it strange that it so easy to change the JV company for a mega-billion project just like that – especially since hundreds of millions or even billions in Penag state land has already been transacted and asked if this indicate that Tokong is in full control and can dictate who or which company to be awarded, retained or revoked?

    Tokong was quick to remove BUCG blaming that the contractor supposedly refused to be held accountable over the tragedy and is playing with Malaysians’ lives.

    Now that this is found not to be true then this will mark a new low for Tokong – where he may have falsely used the tragedy of a young girl’s horrific loss of life to further his own agenda.

    Absolutely disgusting.

    I am sure even Mkini and many DAP supporters also won’t be able to accept this….

    —-
    https://www.facebook.com/photo.php?fbid=1855016578050461

    • Where was the company when she was killed immediately? Go and use indon as sacrificial lamb and when monk “tah cai” and cm meow, only anil and stooges make a hue. Why company and bn gomen polisi allow indon to balek kampong? So easy for indon to masuk dan keluar but bullied rakyat like Maria chin cannot go and get her award in korea

  3. Subprime crisis in the making if builders turn lenders, economists predict
    https://sg.news.yahoo.com/subprime-crisis-making-builders-turn-lenders-economists-homebuyers-225700945.html
    “I think this will spiral and the debt ratio will become higher. The lower and middle classes who need real help are being penalised. The rich who can get bank loans will be borrowing at 4 per cent and the poor who may not get bank loans will have to pay 18 per cent,” said Axis REIT Managers Bhd head of investments Siva Shanker.

    Proposal: Property developers to give out loans to buyers at an interest rate of between 12 and 18 per cent!!!
    Is this going to help house buyers in the longer run? How would a property purchase appreciate in value enough to be able to exceed the value of the 18 per cent loan??? Gunalah OTAK!
    ASTAGHFIRULLAH AZEEM.

    KUALA LUMPUR, Sept 9 — Putrajaya is risking a subprime crisis if it lets developers assume the role of housing loan creditors who are allowed to charge quadruple the interest rates offered by banks, the National House Buyers Association (HBA) warned.

    In a statement to the Malay Mail Online late last night, the HBA urged the government to reconsider the scheme, saying the country’s economy could suffer should a property bubble occur as a result of the “ridiculous” initiative announced yesterday.

    “Being a licensed moneylender also known as a licensed ‘Ah Long’ is capital intensive and housing developers, to sustain their business, would continue to price their products at ridiculous and unsustainable prices, this can accelerate a housing bubble like what happened to the US during the ‘Sub-Prime Crisis’.

    “HBA humbly appeals to our prime minister who is also the minister of finance to intervene in this ridiculous proposal (bad idea) as it not only does not address the root cause of high property prices, which is due to excessive speculation, but encourages the developer to even price their properties higher and give loans to undeserving borrowers,” it said.

    Economist Dr Yeah Kim Leng said the scheme had the makings of a property and financial crisis as developers would have to venture into unfamiliar territory as they deal with buyers who may default on their loans.

    “The key is the developers: Whether they can finance the new market segment; that kind of financial risk so it is very, very niche and of course it will boost the property market in terms of increasing demand, but there is also the risk of delinquencies.

    “It will seed the next crisis if we do not proceed cautiously, especially to ensure we are not creating another unregulated shadow banking system,” the Sunway University Business School professor of economics said.

    Axis REIT Managers Bhd head of investments Siva Shanker also predicted dire consequences for the economy if the government goes ahead with the scheme.

    “I think this will spiral and the debt ratio will become higher. The lower and middle classes who need real help are being penalised. The rich who can get bank loans will be borrowing at 4 per cent and the poor who may not get bank loans will have to pay 18 per cent,” he told Malay Mail Online in a phone interview.

    Regardless of the type of property or the location, no property purchase would appreciate in value enough to be able to exceed the value of the 18 per cent loan, he stressed.

    Bailout?

    Given the high interest rates of between 12 and 18 per cent that the developers would be allowed to charge, the HBA feared the government might have to one day rescue developers when buyers default on their loans.

    The association pointed out that Malaysians are already struggling to pay their mortgages.

    “Property developers will be driven by greed to approve loans to borrowers who do not meet their minimum lending criteria just to close the sale and there will be a very high chance that these borrowers will default on their loan, especially given the high fixed interest rates of 12 per cent to 18 per cent.

    “There may be a possibility that eventually housing developers may approach the government for bailout money, claiming that this loan scheme was a form of ‘National Service’,” it said.

    Alternatives

    Unlike the HBA, Siva did not think Malaysia would experience a subprime crisis at the levels faced by the US in the mid-2000s, expressing confidence that the government would have learnt from the superpower’s mistakes.

    However, he felt the government would do better to brainstorm for other ideas with stakeholders to help Malaysians afford their own homes than proceed with this latest plan.

    He suggested the government implement other forms of financial assistance to complement the current system rather than allow developers to provide loans to buyers.

    “Rather we should relax our lending laws a bit. Banks may consider ways to become less stringent.

    “We need to help first-time buyers, young couples and the lower, middle class maybe by offering high 100 per cent loans instead of 80 per cent or maybe have longer repayments,” he said.

    Another consideration was for the government to revive the Developer Interest Bearing Scheme (DIBS) abolished in 2014 due to excessive property speculation and enforce stringent regulation this time around.

    “It didn’t work last time because it wasn’t properly regulated. If they regulate it this time, it will really help first-time buyers,” Siva said.

    Yesterday, the Urban Wellbeing, Housing and Local Government Ministry announced the introduction of an initiative that enables property developers to give out loans to buyers at an interest rate of between 12 and 18 per cent.

    Its Minister Tan Sri Noh Omar said that the move is intended to assist Malaysians who are unable to get a full housing loan from banks or those who may only be given a partial housing loan.

    The number of unsold units in both residential and commercial properties also rose by 16 per cent in the first quarter of this year, according to the National Property Information Centre.

    The Real Estate and Housing Developers Association (Rehda) Institute chairman Datuk Jeffrey Ng attributed the increase of unsold homes to Bank Negara Malaysia’s strict policies on banks to rein in growing household debt.

    The central bank’s annual report for 2013 — the most recent figures available — showed household debt levels overall have increased to 87 per cent, a steady climb from 60 per cent in 2008. Of that figure though, more than 40 per cent of household debt went into loans for property purchases.

    • Noh Omar said those cannot get bank loan for housing can get loan from the housing developer.
      Stupid statement indeed for a Minister to say such thing. It shows he does not know economics.

      • Developers now legalised Ah Longs to create higher domestic debts per GDP hitting beyond present ~88%, truly huat huat?

      • The banks have reasons to rejects applicants, many of whom would have difficulty repaying the loans, already non-performing loans are on the rise. Nor Omar is passing the risk to the developers, who are pleased to double up as Ah Long legally with 18% annual interest loan.

      • Developers reportedly can charge up to 18% interest rate!

        If so they can create havoc to more household debts!

      • What leads to this havoc?
        If one follows the surreal property market, the super-high prices & building of mostly high-end properties are the 2 main original causes, which lead to speculations & high land prices.
        But that ‘fella’ @ Komtar Tower who approves all state development including the type of development & pricing scales didn’t seemed to care but let the housing problem festers.
        That ‘fella’ who gave much hope & promises of housing for all (Penang will be a stellar state for all to see) but in reality a very skewed housing development towards the rich & famous.
        Still wanna drown in self-denial?

      • Abolish archaic Moneylenders Act 1951
        Urban Well-being, Housing and Local Government Minister Tan Sri Noh Omar’s idea of allowing developers to give out loans to housebuyers is clearly hitting a snag.
        Now that the archaic Moneylenders Act 1951 (Amended 2001) is brought to the limelight, it is best to get rid of it so as not to give legal cover to loan sharks, and, more importantly, to protect Malaysia’s financial institutions from systemic risks and possible collapse.
        Shadow banking, such as those provided for under Moneylender Act 1951, should be curbed and curtained.
        All financial institutions should be placed under the stringent watch of Bank Negara. The archaic powers of licencing moneylenders under the Ministry of Urban Well-being, Housing and Local Government should be revoked to prevent a subprime-like crisis from happening in Malaysia.
        I have never thought highly of Noh Omar’s intellect. This particular proposal by Noh to allow developers to provide loans to housebuyers is a clear example that Prime Minister Najib Razak erred in appointing him to the frontbench in the recent Cabinet reshuffle.
        Second Finance Minister Datuk Johari Abdul Ghani puts it very well, that “it doesn’t make sense. To me, it doesn’t sound logical.” “You must tell the public so that they will not be trapped into simply borrowing without knowing their ability to pay… it is very important,” he told news portal Malaysiakini.
        Johari added that if interested home buyers were unable to obtain loans from banks offering current interest rates of between four and six per cent, they would not be able to pay the proposed higher rates of 12 and 18 per cent charged by developers.
        Noh’s idea also did not receive backing from Treasury Secretary-General Tan Sri Mohd Irwan Serigar Abdullah who commented that “we need to study (this proposal). I read about it in the papers, and can’t comment much.”
        Such is the state of affairs in Najib’s Cabinet that a major change to the financial architecture of the nation is being announced by a minister, to be contradicted by the Second Finance Minister and Treasury’s Secretary-General soon after.
        The immediate tasks for Najib are
        1) to officially halt Noh Omar’s plan;
        2) to abolish the Moneylenders Act 1951 in the upcoming Parliamentary session beginning 17th October 2016 and move all powers pertaining to shadow banking currently under the Urban Well-being, Housing and Local Government to Bank Negara .

        Source: Media conference statement by DAP National Political Education Director and MP for Kluang Liew Chin Tong in Kluang on 10th September 2016 at 12 noon

      • Selangor voters can judge if Noh Omar is competent to be their next MB. Noh Omar must be trying too hard to impress Jibby with his ‘blue ocean’ strategy that Khir Toyol could not have devised even with the inspiration from his new wife.

    • I thought many CAT trolls here are supporting Niao Kong’s love of developers?
      How come the opposite?
      Forgotten CAT’s strict rule?: Don’t cross the line.

  4. After the BUCG, may come the burp, the buuuurrrp, the buuuuurrrrrrrrrpppppp!
    No compensation, hip-hip-CAT hero!
    But once Anil & NGOs complain of any recalcitrant projects, be ready to hear a menyilai “You want to get sued for compensation ah?”

  5. The project has been fishy since the first day.

    1. Zenith has minimal track records, and none for undersea tunnel. They financial position is not strong as well. Why Zenith has more than 90% stake in the Zenith-BUCG Consortium while an experienced giant contractor held only 1% in the consortium? Can someone explain?

    2. Will the project be safe when Zenith has no experience in undersea tunnel construction? How it going to monitor the contractor, especially the aspects of quality, safety and health?

    • I am wondering if with the BUCG’s withdrawal, the whole contract could be null and void since Zenith and the other local companies by themselves are not financially strong to undertake the project. The bulk of the Rm4.0 Billion paid up capital came from the two Chinese companies. As I understand, the main reason why the consortium won the tender is due to the financial strength of the two Chinese companies as well as their track record. As such with the withdrawal / sacking of BUCG, the rationale to award the contract falls apart and should disqualify the consortium as they no longer have the requisite financial clout and experience to undertake projects of such magnitude.

      I believe there is a reason behind this decision that Tokong isn’t telling us.

      • at least it is more transparent thsn mdb and mdb no 1. but there are more news which you can critise about 1mdb and dbkl which are using you pay gst and incone tax. why a mice over loss of billions

    • you do not pay tax or gdt? you pay to wrong guy who pocket money; job of federal like kabour, polisis. construct industry council. safery cert issued by gilakan? look macc and polisi can nab cm. look tunnel cannot?

    • Tv Malaysia did not show when o ba ma went to g20 in hangzhou, uncle Sam is smaller than indonesia. O ba ma has to come down from back of air force one. China tell uncle Sam whose airport belongs!

    • Gilakan bn gomen has George Kent water meter building KL mrt. Water meter co doing rail transport??? What gilakan supporters think?

  6. if there is an accident the contruction or ohs should act to see if the contractor are obeying the rules. if fact during implementation there should be regular inspection by gomen like council food inspectors. no wonder malaysia air asia can fly backwards. if plane crash, not air asia investigate but civil aviation. same road accidents not motorists but mata2 investigate or vehicle check up. why dont blame authorities..why gomen dont act like sirim? afterall it is a gomen project and anil.as a tax payer and contribute money also reponsible

  7. Just a few days ago Penang CM LGE shouted loudly by accusing BUCG of being numb and dumb, not even bother to contact the victim’s family. But in actual fact, it’s just the other way round? BUCG was even then asked to get out (of Penang) 滚蛋?
    Now LGE has to shut up as BUCG has entered into an agreement to compensate the crane accident victim with a “satisfying” amount.

    http://www.thestar.com.my/news/nation/2016/09/08/crane-victims-family-not-suing-bucg/

    • This LGE looked stupid after reading the following report.

      Quoted from Oriental daily: “The Chinese-language daily also quoted Khoon Ying as saying that BUGC had attempted to use various channels to contact the family, but the family had been unable to respond because it was preoccupied with Joice’s final rites until two, three days after her funeral on Aug 29.

      Read more: https://www.malaysiakini.com/news/355139#ixzz4Ji0SBh5K

      http://www.malaysiakini.com/news/355139

      • This guy has overplayed his political-overdrive. He conveniently or so habitually overtuned his big-mouth amplifier.

      • immediately after accident Bucb chap lu gong. why no help until the monks perfotm the rites until public uproar.

        so pg lang chin chai. never mind pg lang allow contractord to kill more public. why spend more time hanging around construction sites and next of kin waiting to collect money.

      • Don’t try to be Marlo Brando godfather and mafia and a biggest troll. Now you worship BUCG and they are your chinese tua pek kong.

      • I believe the bereaved family is ‘smart’ + ‘realistic’ enough not to be played as PR Pawns for the insidious interests of opportunistic + self-serving Trader Politicians.

      • BUCG your tokong and you are their spokesman. Of you are smart being paid off(?) Mighty chinese remibi and banana RM. You support BUCG to drop their anchors anywhere and any time. Now you support the builder for developers no surprise at Mighty remibi. Malaysia public live not important. Construction safety not important. Breaking laws can close eye and cash is king in your eyes. Hi hi

  8. If BNfriendly Gamuda deemed irresponsible then dusqualified by Penang State Government, then Penang very own Ivory Properties may jump in as replacement?
    Ivory’s Low Eng Hock together with Ideal’s Alex Ooi may then be a force harder for PHT to counter any dubious matter?

  9. We have PHT on board PTC meeting do that PTMP no smell of foul play from PDP of SRS Consortium. Sorry for acronyms as Penang now filled with had Gone typical hokkien community end up “big chap” or literally me don’t give a damm.

    We hope Mdm Khoo Salma and Mdm Lim Gaik Sian can resolve alternating attendances matter, just like Mr Anil can arrange to alternate with Dr Lim Mah Hui to keep many eyes if potential hanky lanky that can be exploited by Gelakan Teng Teng Oh Oh Thor Thor snakeoil peddling by the heritage pasar malam.

    • I am representing Aliran and Mah Hui is there in his capacity as MBPP councillor. So the two of us are not alternate members.

      In any case, what is the harm if an alternate member wants to attend PTC meetings as an observer? After all, SRS Consortium has more than one person at these meetings – and they are not even part of the PTC.

      • Don’t get me wrong. The more the merrier as most common folks too busy with tough barang naik life and count on dedicated people to be the wistful eyes of any mischiefs be it from the Cats or the Dogs.

        But Anil, who represent CAP?

      • Don’t tell us that SRS being a consortium of 3 parties entitle to 3 times more representatives than Aliran, CAP, PHT combined?

        If there’s quota, then Ideal condo king Alex King can attend on behalf of Gamuda alternately yo be fair?

LEAVE A REPLY

Please enter your comment!
Please enter your name here