Firm fined RM18m over pipeline projects

May 25, 2019

Dateline 2019-04-06, Daily Express:

Suria Strategic Energy Resources Sdn Bhd (SSER), a subsidiary of the Ministry of Finance which carried out two petrochemical and gas pipeline projects worth RM9.4 billion, was on Friday fined RM18 million by the Sessions Court here for failing to comply with Bank Negara Malaysia conditions.

Among the offences were that SSER had issued loan funds from The Export-Import Bank of China not based on the progress of the Multi-Product Pipeline (MPP) and Trans-Sabah Gas Pipeline (TSGP) projects and paid RM8.3 billion or 88 per cent of the cost of construction of RM9.4 billion for the two projects to the contractor, China Petroleum Pipeline Engineering Co Ltd (CPP), when work progress was only at 13 per cent.

Judge Manira Mohd Noor meted the sentence on SSER, which was represented by Kishan Narendra Jasani (a representative appointed by the board of directors for the court case), after he pleaded guilty to six charges on behalf of the company as the accused.

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Malaysia’s Finance Ministry unearths S$3.2b gas pipeline scandal

July 11, 2018

Dateline 2018-06-05, Straits Times:

Malaysia’s Finance Ministry has discovered dubious payments made in two pipeline projects, with nearly 90 per cent of the contracts worth RM9.4 billion (S$3.2 billion) being paid out but only 13 per cent of the work being completed.

The projects – one multi-product petroleum pipeline running from Melaka and Negeri Sembilan to Kedah, and a gas pipeline from Kimanis to Sandakan and Tawau, all in Sabah – were handled by Suria Strategic Energy Resources (SSER), a wholly owned subsidiary of the Ministry of Finance.

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