Malaysia seized $240m from Chinese company over pipeline project: Mahathir

Share on facebook
Share on google
Share on twitter
Share on linkedin
A VPN is an essential component of IT security, whether you’re just starting a business or are already up and running. Most business interactions and transactions happen online and VPN
Malaysia seized $240m from Chinese company over pipeline project: Mahathir

Malaysia seized more than 1 billion ringgit ($243.5 million) from a bank account of state-owned China Petroleum Pipeline Engineering (CPP) over incomplete pipeline projects, Prime Minister Mahathir Mohamad said on Monday.

The seizure comes nearly a year after Malaysia suspended two pipeline projects, valued at $2.3 billion, on which CPP was the lead contractor. CPP is a unit of state energy giant China National Petroleum Corp.

“I understand that money for 80% of the pipeline was paid, but the work completed was only 13%,” Mahathir told reporters. “So the government is entitled to get back the money, since the project was cancelled.”

His comments followed a report on Saturday from Singapore-based Straits Times, which said that Malaysia had seized the funds from CPP’s account at HSBC Malaysia.

HSBC declined to comment, citing client confidentiality.

In an email sent to Reuters late on Monday, CPP said it understood Malaysia’s Anti-Corruption Council ordered the fund transfer and that it was made without the company’s knowledge.

“CPP is currently speaking to the relevant parties in a bid to obtain and understand the basis of the transfer. Once we have further information, CPP will take the necessary and appropriate actions to protect its rights,” the Chinese company said.

In 2016 CPP won a contract from the government of former prime minister Najib Razak to build a 600km petroleum pipeline along the west coast of peninsular Malaysia and a 662km gas pipeline in Sabah, the Malaysian state on Borneo island.

Both projects were suspended by Mahathir in July last year after he defeated Najib in the 2018 national election.

Mahathir had vowed to renegotiate or cancel what he calls “unfair” Chinese projects authorised by Najib, straining ties with Malaysia’s biggest trading partner.

Malaysia and China this year agreed to resume a multibillion-dollar rail project after shaving off nearly a third of its cost to 44 billion ringgit.

Mahathir on Monday said he was not concerned about a fallout with China for seizing money from a state-owned Chinese firm.

“I don’t see why the Chinese would feel unhappy about it because we are not taking back money for what they have done,” he said. 

HOT NEWS

HOT NEWS

Leave a Replay

0 0 votes
Article Rating
simple-ad

This is a demo advert, you can use simple text, HTML image or any Ad Service JavaScript code. If you're inserting HTML or JS code make sure editor is switched to "Text" mode.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Sign up for our Newsletter

Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit