Lim Guan Eng must explain why consultancy fees are 400% higher than Gazetted Scale of Fees

To show that one is upholding the state government’s motto of Competency, Accountability and Transparency (CAT), DAP Penang Chief Minister Lim Guan Eng who is in charge of the Penang Traffic Master Plan (PTMP), must immediately explain the overpayment of RM136.4million for consultation fees for three main roads the Penang Undersea Tunnel Project.

Although the cost of the feasibility study is not subject to federal guidelines, the cost of the detailed design should be based on the Gazetted Scale of Fees by the Board of Engineers as the final guide. Although the amount of the design fees is not subject Gazetted Scale of Fees by the Board of Engineers, not adopting the Board’s scale runs contrary to the responsibility of the Board of Engineers.

Under an arrangement with the Ministry of Works, the Board of Engineers had devised a standardised Gazetted Scale of Fees for professional engineering consultancy fees, in accordance with Section 4(1)(d) of the Registration of Engineers Act 1967 (Act 138).

In fact, construction is not a new industry, and our country is familiar with road works. Thus many people are puzzled by the exorbitant cost of the consultancy fees.

In order to remove suspicion on the steep consultancy fees of the three main roads, the BN strategy communications team consulted the Board of Engineers for expert advice which was duly given.

The reply letter by the Board of Engineer stated that the RM177,485,777 paid by the Penang government to the concession holder for detailed design works was four times higher than the maximum allowed under the Board of Engineers Gazetted Scale of Fees which is calculated to be RM41,052,003.62.
  

From the reply letter by the Board of Engineers, people have reason to believe that the Penang state government had paid the consultancy fees in excess of RM136.4 million.

-MCA online-