- Dec 13, 2006
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from malaysianinsider.
btw, why does agong need a new palace? might as well use the 800 million to help the poor, give out more scholarships. :stupid:
sien la... we all suffering like hell but the govt keep giving contracts through direct nego to their cronies...KUALA LUMPUR, June 14 — The new Istana Negara in Jalan Duta will now cost more than RM800 million, and not RM400 million as announced by the government in 2006. Deputy Works Minister Datuk Yong Khoon Seng said the cost includes the construction of a new RM130 million flyover leading to the palace in Jalan Duta, and upgrading works on Jalan Changkat Semantan costing RM32.5 million.
He added that the flyover project and the road upgrading works were awarded to Ahmad Zaki Resources and Kejuruteraan Kenari respectively through direct negotiation. The Istana Negara complex itself will cost around RM650 million and the project was awarded to Maya Maju, also through direct negotiation. The palace will be completed by February next year.
“The figure announced by the former minister did not include the details, before the negotiation,” said Yong when responding to DAP’s Taiping MP Nga Kor Ming. Nga pointed out that former works minister Datuk Seri S. Samy Vellu had said in 2006 that the new palace would only cost RM400 million.
He said he was also shocked with the government’s reply that the projects were awarded through direct negotiations. “This is against the principles of the New Economic Model. According to the Treasury, any procurement of more than RM200,000 must be made through open tender,” said Nga.
“How is it possible for the cost to increase by 100 per cent within five years?” he asked, before questioning if the cost overruns were caused by the practice of direct negotiations. In defending the ballooning cost, Yong said the project was special as it is the first time the country is building an Istana Negara for the Yang DiPertuan Agong. He added that the project also requires additional security measures.
The existing Istana Negara, located in Jalan Istana, was originally a private residence which was bought by the Selangor government after the Second World War. It was later acquired by the federal government in 1957 to be converted to the Istana Negara.
btw, why does agong need a new palace? might as well use the 800 million to help the poor, give out more scholarships. :stupid: