Questions looms loudly in the construction industry as most people are perplexed over the award of a RM320 million Bank Negara Resource Centre Project to a little unknown company who is currently facing problem of paying some levy owed to Construction Industry Development Board (CIDB). An investigation conducted by NST on this company also found that they had not submitted audited accounts for 3 consecutive years from 2002 to 2004. The Company had also failed to submit its profit and loss accounts to Companies Commission of Malaysia.
The award surprised major construction companies which had been bidding for the large project, like Maju Holdings Bhd, Ahmad Zaki Resources Bhd, PECD Bhd, Ranhill Bhd and UEM Builders Bhd.
Attempts to ascertain the company’s capabilities and track record have been hampered by a lack of current information.
H & I Niaga is owned by Amerudin Ismail (2mil shares) and Ismail Mohd Hashim (3mil shares).
H & I Niaga made headlines years back when their project involving the construction of the Royal Malaysian Navy Recruit Training Centre in Kota Tinggi Johor was reported to have been defective and the building was found to have so many cracks and leakages problem. JKR and the Ministry of Defence had investigated the shoddy works and massive rectification works were carried out respectively. Nothing was further reported on this project thereafter.
H&I Niaga was also the contractor for Cheras Velodrome Project and some projects awarded by UiTM.
Bank Negara said they had evaluated the selection process and the award was based primarily on competitive pricing. How is it that Bank Negara would select a contractor who are currently facing financial problem and could not even pay CIDB levy - that's amusing! The selection process must be tainted with cronyisma and nepotisma. How could an award fo such a large project not have taken into consideration the weak financial positions of a company when the size of the project is so mammoth? Surely, if a company had not submitted its profit and loss accounts for the last three years, something must be grossly wrong? Or, alternatively, NST investigation and report was defective and grossly wrong; I doubt.
We will have to hear some explanation from H&I Niaga and most of all, Governor Zeti of Bank Negara.
H&I Niaga Hangs