Huan Cheng Guan says that he made the report because he was shocked when he read a statement by Barisan Nasional Strategic Communications (BNSC) team that said the proposed undersea tunnel project was awarded to an “undercapitalised” company

GEORGE TOWN: A police report has been lodged by Parti Cinta Malaysia (PCM) over the Penang government’s proposed undersea tunnel and three paired roads project.

PCM president Huan Cheng Guan said that he made the report on Sunday because he was shocked when he read a statement by Barisan Nasional Strategic Communications (BNSC) team that said the proposed undersea tunnel project was awarded to an “undercapitalised” company.

He said these were serious allegations against the state government and urged the police to carry out a thorough investigation.

“If the claims are true, it means the state government has made a huge mistake by misusing their power,” he said at a press conference, The Star reported.

It was reported on Saturday that the BNSC team asked the Penang government to show evidence that it did not break procurement guidelines when it awarded the project to an “undercapitalised” company.

Its deputy director Eric See-To said of concern was the Penang Tunnel’s special purpose vehicle (SPV) company was awarded the project although it was relatively new with low cash balances and paid-up capital in relation to the mega project.

He said the SPV company only had a paid-up capital of RM100,000 when it was awarded the undersea tunnel project in March 2013.

See-To said the Works Ministry guidelines made it compulsory for contract bidders to show financial strength of at least 3% of the contract value when conducting a financial evaluation for a Request for Proposal (RFP), otherwise it would automatically disqualify the bidder.

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