Consultancy firm McKinsey & Co will be paid RM8.2 million for the value management study on the Mass Rapid Transport system that the Public Land Transport Commission (Spad) had commissioned.

tian chua 01 240505 Minister in the Prime Minister's Department Mohd Nazri Abdul Aziz disclosed this in a written parliamentary reply to PKR’s Batu MP Tian Chua (left) .

"McKinsey is a favourite for studies. I don't know how much (it received) from the government," said Chua.

According to Nazri’s reply, McKinsey was engaged to conduct a value management study to optimise the use of real estate, reduce cost, encourage the participation of the private sector and maximise non-fare profits.

Chua pointed out that the government had previously sold various parcels of land below the market value to corporations and government-linked companies.

His examples included KTM land in Bangsar, RRIM land in Sungai Buloh, government properties in Jalan Cochrane, and the Cantonment Camp in Jalan Ipoh.

"The question is, why did the government dispose of these properties via direct negotiations and not through open tender, which can result in a higher price?" Chua asked

No open tender

Nazri, answering a supplementary question from Tan Seng Giaw (DAP-Kepong) in the Dewan Rakyat today, confirmed that the appointment of McKinsey was done without an open tender being called.

parliament gobind singh ban over nazri mistake 251108 01 Nazri (left) said that, since the government had only asked for a study, "there is no need for an open tender".

He added that McKinsey was selected because it is "a very experienced company".

McKinsey had been instrumental in the Performance Enhancement and Delivery Unit's studies which recommended the project. This has called into question the firm's impartiality.

MRT: No clear estimate of cost yet

azlan