Gerakan questions 'high profits' of tunnel feasibility study contractor

PETALING JAYA: Gerakan has questioned the Penang government over the "high profitability" of the company that conducted feasibility studies for the proposed undersea tunnel and the three-paired roads.

Its secretary-general Liang Teck Meng, in a statement on Saturday asked the state government to explain if the huge profit gains recorded by Consortium Zenith BUCG Sdn Bhd (CZBUCG) had been due to the work done on the three studies that the company had conducted.

He said that through its filings with the Companies Commission of Malaysia (SSM), the company had lodged their audited accounts for their financial year ending Aug 31, 2015, showing sales revenues of RM51.8mil.

"The accounts reflect that they have recorded sales revenues of RM51.8mil and an after tax profit of RM54mil on a paid-up share capital of only RM8mil.

"In fact, CZBUCG's profit for the FY2015 is even higher than the surplus recorded by the Penang government for fiscal years 2013 and 2014 combined!" said Liang.

He also added that the high profitability of the company so early into the project was very unusual and noted that CZBUCG had yet to start construction while the company's "only business activity to date has been the three studies".

Liang further raised the question of whether the profit recorded by the company was due to capital gains from land sales given as partial payment by the Penang government.

He also said the company's filings had revealed that the China-based company, BUCG only owned 0.0057% of CZBUCG despite the Penang government's efforts to position the project as a joint-venture between China and Malaysia.

"The rest is owned by local interests," he said.

Earlier, Barisan Nasional strategic communications director Datuk Abdul Rahman Dahlan raised the question of overpayment of RM305mil to the company for the undersea tunnel project feasibility study.



Source: http://www.thestar.com.my/news/nation/2016/05/21/gerakan-questions-high-profits-of-tunnel-feasibility-study-contractor/

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