Open letter to PM on Scomi

I've heard about SCOMI, but wasn't sure of what are the company's core activities. It was yesterday when I talked to a friend that I found out he was in Penang during the bidding phase of the Penang Monorail to work out the estimates, and the project was eventually given to Malaysian Resources Corporation Bhd (MRCB) with Scomi being part of it. I did a search on Scomi and found this interesting letter:

Sulaiman Rejab | Aug 15, 06 3:49pm from MALAYSIAKINI

Dear Mr Prime Minister,

I used to refer to you as ‘Pak Lah’ but I don't think I want to do that anymore because I think you lost all your endearing qualities the moment you took over as prime minister. My friends and I (all of whom wish that Tun Dr Mahathir Mohamad was still our prime minister) deliberately didn't want watch you on the ‘Bersemuka dengan Perdana Menteri’ programme over TV3 last week.

But I almost jumped out of my skin the next day when I read all about it in the newspapers, especially the part about you claiming that your son Kamaluddin had to seek business opportunities overseas because he couldn't get projects here in Malaysia.

Well, explain these Mr Prime Minister:

1. In March, The Malay Mail reported that KTM had in 2005 awarded a five-year RM50 million contract to Scomi Group ‘to overhaul and maintain’ as many as 1,000 wagons.

2. Also in March, Business Times reported that Scomi Group was going to submit a bid for a RM120 million contract ‘to make body parts for about 400 buses for state-owned Syarikat Prasarana Negara Bhd’.

3. Then in April, The Edge reported that Scomi Engineering Bhd is acquiring a 51% stake in MTrans Transportation Systems Sdn Bhd for RM30 million to provide it a platform to be a key player in urban transportation.

Scomi Engineering had on April 28 signed an agreement with Kiara Kilau Sdn Bhd, which owns 100% stake in MTrans, to acquire the 51% stake. MTrans owns bus manufacturer MTRans Bus Sdn Bhd and MTRans Technology Bhd, which specialises in monorail systems and technology. This is, of course, for the Penang monorail project.

So the five-time hike in petroleum prices over the last year on the pretext of improving public transportation is certainly benefitting some parties - your son's Scomi Engineering, to be specific.

What have you done to improve the public transportation in Kuala Lumpur since then? The LRT is still madly congested and the city buses are still breaking down in the middle of already congested roads.

4. Recently, Scomi Marine Bhd received a letter of intent from TNB Fuel Services Sdn Bhd for a coal shipment contract for three years from Oct 1, with an option to extend for another two years, the company said. Scomi Marine announced to Bursa Malaysia on April 14 that under the contract, it would be required to transport 500,000 tonnes (with 20% variation) of coal from Australia, Indonesia and South Africa yearly.

It said TNB Fuel Services would determine the actual quantity of coal to be transported and from which country upon finalisation of the contract, The Edge reported.

5. Also recently, Scomi Group Bhd, an oil services company, won a contract from Petronas Carigali (Turkmenistan) Sdn Bhd to provide drilling fluids and other services for exploration works in Block 1, offshore Turkmenistan.

In a statement issued by Scomi which was published by Business Times, Scomi said the contract would contribute about RM57 million a year to its coffers.

With all these projects, and more to come under your brilliantly devised Ninth Malaysia Plan, why does Kamaluddin have to go overseas to secure projects? Well, I know that Turkmenistan is in central Asia, but the contract was secured here in Kuala Lumpur from Petronas.

All these reek of a scandal in you humble abode, don't you think, Mr Prime Minister?