In June last year, Finance Minister Lim Guan Eng revealed that the government had paid RM8.3 billion for the two projects worth RM9.4 billion despite only completing 13 per cent of the work. — Picture by Firdaus Latif
“The government of Malaysia is now negotiating with China-based contractors on the total compensation amount to be paid by SSER, as well as the sum that should be returned to SSER by the contractors after deducting total compensation cost from the total payments made. Both contracts were awarded to China Petroleum Pipeline Bureau in November 2016 in contracts signed by former Treasury secretary-general Tan Sri Irwan Serigar, who is also SSER chairman.
Today, Lim revealed as of March 28, 2019, SSER had paid RM 8.377 billion for EPCC and consultancy work for the project. Lim added that the projects were extremely lucrative for the contractors because payments were made based on timeline progress regardless of work progress done if any.
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