PAC wants YTL probed over unused RM24m Mentagor Island marina


(FMT) – The Public Accounts Committee (PAC) today urged the transport ministry to look into whether YTL Corporation Berhad can be held liable over the government-commissioned construction of the Mentagor Island public marina project.

In a report tabled at the Dewan Rakyat, PAC chairman Ronald Kiandee said the project had been awarded to the company through direct negotiations, valued at RM24.27 million.

“The marina was supposed to have been constructed in Lumut, Perak, but was relocated based on a suggestion by YTL.

“However, the public marina was never operational or used as YTL was no longer interested in developing an uninhabited island,” Kiandee said in a statement today.

In an immediate response, YTL said there was no basis whatsoever to infer that the company should be, in any way, held responsible for the shortcomings of the project.

The Pulau Mentagor public marina was completed on July 31, 2007, and began operations on March 22, 2010.

However, the marina did not get a response from mariners and no ships entered the marina throughout its operational period, according to the PAC report.

During PAC proceedings, the Marine Department (JLM) had also informed that several pontoons were damaged during strong winds and huge waves on June 9, 2010, resulting in repair works having to be carried out in November 2014 at a cost of RM401,600.

The transport ministry had also told the PAC that Mentagor Island was initially offered to YTL as they were running the Pangkor Laut Resort, as well as the island itself.

However, as a result of several constraints with the then Perak government, YTL decided to not proceed with the development. This led to the marina being offered to the Manjung Municipal Council for 32 years, on a yearly RM160,000 lease.

The council rejected the offer.

In September 2018, the transport ministry contacted YTL again to ask if it was still keen to operate the Mentagor Island marina and YTL declined the offer.

In general, out of the 11 public marinas in the country, the PAC found that only five were still operational.

Kiandee noted that even these five were not able to boost the yachting industry and marine tourism.

“The PAC is of the view that weaknesses in the development and management of public marinas are caused by the absence of a detailed feasibility study being prepared before these projects were carried out.”

YTL: Perak govt was interested in operating marina

YTL, in a statement, said its subsidiary, Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd (SPYTL), was awarded the contract for the construction of the Mentagor Island marina, and its related infrastructure, by the government.

It said that the project was completed on July 31, 2007, and handed over to the Marine Department.

The department, on Oct 21, 2009, issued a Certificate of Making Good Defects for the project. This brought the involvement of SPYTL as a contractor to completion.

“In 2009, YTL made a proposal to JLM to provide operation and maintenance services for the marina. At that time, the Perak state government also indicated that it was interested in operating the marina.

“We understand that the government decided that the marina would be leased to the Perak government to be operated by the local council. Thereafter, YTL’s involvement in the project came to an end,” it said.

In September last year, YTL said it was approached by the transport ministry to enquire if it was still interested in operating and maintaining the marina.

“After due consideration, we informed the ministry that we would not pursue the opportunity at this time.

“As this was a government project, we are in no position to comment on the decision of the government as to how it wishes the marina to be operated.

“However, we wish to make it clear that there is no basis whatsoever to infer that YTL should be in any way held responsible for the shortcomings in the project,” it added.

 



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