Explain retention sum waiver, former Perak MB told

Sylvia Looi
Chong said Zambry must also explain why the funds were released to Sanderson Design Group (M) Sdn Bhd (SDGM) before the completion of the Movie Animation Park Studios (MAPS). — Picture by Farhan Najib

IPOH, March 24 — Former Perak mentri besar Datuk Seri Zambry Abd Kadir must explain the waiver of retention sum to Animation Theme Park Sdn Bhd (ATP), said Keranji assemblyman Chong Zhemin

He said Zambry must also explain why the funds were released to Sanderson Design Group (M) Sdn Bhd (SDGM) before the completion of the Movie Animation Park Studios (MAPS).

Chong, who heads the Perak Corporation Bhd audit committee, said the Special Internal Audit Report on MAPS found the amount retained was released prior to the completion of the project.

“From progress claim, ATP deducted 10 per cent of the progress claim from SDGM as retention sum, which is consistent with the industry practice.”

“However, ATP made a decision on December 29, 2015 to reduce the percentage of retention sum from 10 per cent to 5 per cent of progress claim, up to a maximum of 5 per cent of the contract value,” he said.

On April 7, 2016, ATP made the decision to waive the retention sum and release RM15.33 million to SDGM, upon the receipt of a corporate guarantee for 5 per cent of the contract value from SDGM, added Chong.

“Now that SDGM has gone into receivership, the 5 per cent corporate guarantee that ATP received is good for nothing,” he said.

“Hence, Zambry must explain why did he allow ATP to make such scandalous decision to forgo the retention money when ATP has obtained legal opinion that they are entitled to retain retention sum in the turnkey contract. The decision to release the retention money is absolutely baffling,” he added.

Chong questioned how Zambry agreed to release the entire retention sum to SDGM prior to the completion of the project.

“It is clear that this decision made was not in the best interest of ATP. In fact, this decision which Zambry allowed only served the interest of SDGM,” he said.

“Why is Zambry serving the interest of SDGM when he has direct control over ATP? Shouldn’t he be looking after the interest of ATP?” added Chong.

Yesterday, Chong revealed that the construction and development cost of MAPS had increased about RM217 million compared to its original cost.

He said Zambry, who was the chairman of the Perak State Development Corporation, should explain and be fully responsible for the suspicious cost increase, as he had direct control over Perak Corporation Berhad (PCB).

PCB owns the PBC Development Berhad (PCBD), who holds the 51 per cent share in the Animation Theme Park Sdn Bhd (ATP). The balance 49 per cent share belongs to RSG MAPS Sdn Bhd (RSGM).

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