Categories

Login

Government Policy >>>

LGE was lying in sPICE project costing justification

(adsbygoogle = window.adsbygoogle || []).push({});

LGE said the council (MPPP) will save RM25 million in upgrading Pisa and the Aquatics Centre and it will also receive RM13.5 million from the sale of the hotel land. Thus the MPPP would only have to stump up RM11.5 million instead of RM50 million.

LGE was tried hard to twist and juggle the number. To claim state government only need to come out RM 11.5 million is a fallacy and misleading statement.

Why?

LGE’s argument on MPPP can save RM25 million for initial capital outlay for the repair of swimming pool and aquatics center, etc. is WRONG.

Actually SP Setia is paying MPPP RM25 million in exchange for 30-year leasehold rights, meaning the state government is losing all opportunity incomes generated from the aquatics center and swimming pool which may be higher or lower than RM25 million.

In other word, MPPP is paying SP Setia with future income, therefore he cannot claim RM25 million is a gain.

Similarly for the land, MPPP is losing a piece of land worth RM13.5 in exchange for RM13.5 million cash which is used by MPPP as sPICE initial capital. There is no gain in this case, […]