Dec 18, 2008 By Opalyn Mok
Penang Chief Minister Lim Guan Eng has warned Gamuda Bhd to think carefully before making allegations against the state government.
"Don't play the fool with the Penang state government," he said in response to Gamuda's statement today that its RM12.5bil double-tracking project linking Ipoh to Padang Besar was delayed due to land acquisition problems in Penang.
"My advice to Gamuda is to think carefully before they bring up allegations that we caused the delay," said Lim.
He said MMC-Gamuda Joint Venture Sdn Bhd, a joint venture between Gamuda and MMC Corp Bhd, was issued a stop work order back in October because they had damaged the river bund and caused floods in several areas on the mainland.
"The company had admitted causing the problem and even paid compensation to a farmer for losses he suffered due to the floods, and then they went and told the Transport Ministry that they did not cause the floods," he said.
Lim said he will prepare a full reply to Gamuda's statement tomorrow but repeated his warning to the company to not play around with the Penang state government'.
It was reported on Wednesday that Gamuda group managing director Datuk Lin Yun Ling said the double tracking project will be delayed by at least a year due to the delay in acquiring land in Penang.
He reportedly said there are substantial delays in Penang due to the huge number of squatters between the railway and the rights of reserve.
Lin said the government should have handed the land over within nine months of the start of the contract but that it will take at least another year for the land to be handed over.
The project, which commenced in January, is expected to be completed in early 2013.