Yours truly need to correct The Star report here. This blog is 'only' posing the question whether it is true or not. It is not an outright accusation.
To quote the analyst, now that is a spin. Off course, the analyst is undisturbed because the potential problem is not a listed concern. If it is, they will be concerned too.
UEM have made the necessary denial and explanation. They have corrected an oversight that UEM Group is not listed but UEM World is. Their listing status is passed on to UEM Land. Nevertheless, the question remains relevent.
There are many subsequent questions from their statement and commentators. Yours truly will be meeting few little birds over the weekend. Lets delve on it next week.
There were comentators Ciku Muda, and Jack sharing the operational problem faced by the Qatar project. Putik Ciku Bergetah expressed pride in their achievement.
Those are not quite answering the question but it gives an overview of the situation. If we lose money, how? And your company go bust? This is nation's asset. The cost of pride?
Many comentators were defensive and aggresive towards UEM. Many went out of topic and simplified conclusion. This is about issues of policy, professionalism and accountability.
RM840 million is a serious sh*t, whether one is a first defendent or second defendent. If the first defendent defaulted, Qatar PWA will go after UEM.
Why was the joint and several agreement signed? Few commentators questioned Ciku Muda about his no. 7 point and it and the no 6 point is reproduced below:
6. The failure took place exactly during the prestigious event of Asian Games 2006 (which Malaysia had lost the bid to be the host). Some portion of the highway starts to crack and damage severely. Unusual heavy rain since the past 10 years had deteriorated the damage further. However, it was surprisingly that the failure took place at only one particular type of design which is the pavement ‘Type 5’ out of 7 or 8 different types of road design in the project.Enjoy the weekend and school holidays. In the meanwhile, enjoy this performace of McCartney's song Blackbird.
7. Subsequent to the first failure, at half way through the project, UEM was invited by PWA to re-negotiate the contract which ended up UEM being given a new price, new completion date, new design drawings, new requirement & specifications (which was until to date not approved by Qatar General Organization For Standards and Metrology) and less scope (as PWA wish to involve local company participation in the project). Both parties mutually agreed with a further terms in which PWA promised to assess fairly UEM’s earlier submission of financial claim, compensated losses incurred by UEM, no back charging of cost incurred by local companies participation, and many sweet promises more.
More next week.