Gov't manipulates Putrajaya costs, charges MP
Malaysiakini.com
May 15, 2008 
Rahmah Ghazali

A DAP parliamentarian believed the
MCPX
figures in the written reply from Prime Minister Abdullah Ahmad Badawi on the total construction cost of the federal administrative capital in Putrajaya have been manipulated.

“It’s dishonest creative accounting by the government,” Liew Chin Tong (DAP-Bukit Bendera) charged in a statement today.

putrajaya prime minister office 030408Responding to his question in Parliament, the premier said the total RM11.83 billion covers the development of the government departments, the Putrajaya International Convention Centre, the official residences of the premier, his deputy, ministers, judges and other facilities.

However, Liew rebuked the total figure as it contradicted with a statement made by then finance minister in February 1997.

“The minister said then that the projected cost to build the administrative capital was RM25 billion,” he said, saying that was the only occasion in the last 13 years the government had provided the overall figure since the project was launched in 1995.

“It would definitely cost more than (RM11.83 billion),” he added.

Putrajaya Holdings

According to the reply, the government is renting these premises from Putrajaya Holdings Sdn Bhd - a private company which financed the construction of the government offices for a concession of 25 years.

liew chin tong“But the company is 64.4% owned by Petronas,” said Liew, expressing his doubt over the status of the ‘private’ company.

At the end of the 25-year concession period, the buildings will be handed over to the government without any additional payment after paying annually.

The prime minister also gave the breakdown of the rentals it paid to Putrajaya Holdings from 1999 to 2007.

govt rental for putrajaya putrajaya holdingThey are RM929.7 million (2007), RM878.1 million (2006), RM732 million (2005), RM434 million (2004), RM373 million (2003), RM309.8 million (2002), RM247.9 million (2001), RM129.8 million (2000) and RM18.6 million (1999).

However, Lim argued that the government is paying a whopping RM1 billion annually to Putrajaya Holdings for the use of office space only.

“Landscaping, maintenance and other expenditure are not inclusive,” he said.

The MP also claimed that the government attempts to hide the fact that the Putrajaya project is essentially an unjustifiable white elephant.

“It has cost a hefty sum of taxpayers’ money that could have benefitted Malaysians in other more effective ways,” said Lim.

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