Chong pinpoints Sacofa as direct beneficiary of RM1 billion for ICT
KUCHING:
The state government’s announcement that RM1 billion would be used to
upgrade the information and communications technology (ICT)
infrastructure and to build 5,000 telecommunications (telco) towers is
another mega project to be directly awarded to a Barisan Nasional (BN)
crony without tender.
In stating this, Bandar Kuching MP Chong Chieng Jen who is DAP Sarawak chairman pointed out that the development of ICT infrastructure could be carried out without the rent-seeking and profiteering elements of Sacofa Sdn Bhd.
“Yet the state government chose to allow Sacofa to profiteer on this RM1 billion allocation. This will result in higher costs and less effective results,” he said in a press statement yesterday.
Chong, who is also Kota Sentosa assemblyman, said at the moment only one company in Sarawak has the full authority on the control, construction and licensing of ICT infrastructure – namely Sacofa.
“When Sacofa Sdn Bhd was set up in 2001, it was merely incorporated as a regulatory body, fully-owned and controlled by the Sarawak government. Our state law was amended to give Sacofa the full power to regulate and control all ICT infrastructures in Sarawak.
“Subsequently, Sacofa involved itself in the building of telco towers and then, other ICT facilities like the laying of fibre optic cable network.”
According to Chong, the state government even took up massive loans to build up the business of Sacofa.
“In 2015, the state government sold 50 per cent stake in Sacofa to CMS Group at way below the fair price of the company. The transaction was completed in 2016.
“Immediately thereafter in early 2017, the government announced a RM1 billion allocation for the development of ICT infrastructure project in Sarawak.”
Chong said the chronology of events surrounding Chief Minister Datuk Amar Abang Johari Tun Openg’s announcement was just so coincident that it strongly suggested all was planned to allow CMS Group get the biggest cut from the award of the RM1-billion projects.
“DAP fully supports the development of ICT infrastructure in Sarawak. However, we object to the way the state BN government goes about doing the said development because the government is giving a private company the power to regulate and monopolistic rights over the development of ICT infrastructure.
“With such regulatory and commercial rights in one company, the state government, when it allocates RM1 billion to develop ICT infrastructure, is effectively giving Sacofa a blank cheque of RM1 billion to do as it likes, or to build 5,000 telco towers as and where it decides.”
He regarded this as tantamount to transfer of the executive power of an elected government to a commercial company.
“It is just like what happens before; i.e. the state government, via one single contract, appoints Titanium Management Sdn Bhd to build more than 300 bridges (as and where it decides) in Sarawak. This entails higher costs to the government and ultimately, higher costs to the people of Sarawak.
In stating this, Bandar Kuching MP Chong Chieng Jen who is DAP Sarawak chairman pointed out that the development of ICT infrastructure could be carried out without the rent-seeking and profiteering elements of Sacofa Sdn Bhd.
“Yet the state government chose to allow Sacofa to profiteer on this RM1 billion allocation. This will result in higher costs and less effective results,” he said in a press statement yesterday.
Chong, who is also Kota Sentosa assemblyman, said at the moment only one company in Sarawak has the full authority on the control, construction and licensing of ICT infrastructure – namely Sacofa.
“When Sacofa Sdn Bhd was set up in 2001, it was merely incorporated as a regulatory body, fully-owned and controlled by the Sarawak government. Our state law was amended to give Sacofa the full power to regulate and control all ICT infrastructures in Sarawak.
“Subsequently, Sacofa involved itself in the building of telco towers and then, other ICT facilities like the laying of fibre optic cable network.”
According to Chong, the state government even took up massive loans to build up the business of Sacofa.
“In 2015, the state government sold 50 per cent stake in Sacofa to CMS Group at way below the fair price of the company. The transaction was completed in 2016.
“Immediately thereafter in early 2017, the government announced a RM1 billion allocation for the development of ICT infrastructure project in Sarawak.”
Chong said the chronology of events surrounding Chief Minister Datuk Amar Abang Johari Tun Openg’s announcement was just so coincident that it strongly suggested all was planned to allow CMS Group get the biggest cut from the award of the RM1-billion projects.
“DAP fully supports the development of ICT infrastructure in Sarawak. However, we object to the way the state BN government goes about doing the said development because the government is giving a private company the power to regulate and monopolistic rights over the development of ICT infrastructure.
“With such regulatory and commercial rights in one company, the state government, when it allocates RM1 billion to develop ICT infrastructure, is effectively giving Sacofa a blank cheque of RM1 billion to do as it likes, or to build 5,000 telco towers as and where it decides.”
He regarded this as tantamount to transfer of the executive power of an elected government to a commercial company.
“It is just like what happens before; i.e. the state government, via one single contract, appoints Titanium Management Sdn Bhd to build more than 300 bridges (as and where it decides) in Sarawak. This entails higher costs to the government and ultimately, higher costs to the people of Sarawak.
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