Did the PMO interfere in government payments to KCJ Engineering?

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The Prime Minister's Office Did Not Interfere in Government Payments to KCJ Engineering

The Prime Minister’s Office (PMO) did not interfere with government payments made to KCJ Engineering Sdn Bhd for a RM62 million project under the Jana Wibawa programme. Payments were authorised based solely on the progress of the work completed, according to testimony from the Public Works Department (JKR) Negeri Sembilan director, Datuk Wan Hasnan Wan Musa.
Payment Process Based on Project Progress

Datuk Wan Hasnan Wan Musa, serving as the Superintending Officer for the project, confirmed that there was no interference from the PMO or any other government entity regarding payments to KCJ Engineering between March 2022 and February 2023. He stated that all payments, including an RM10 million advance payment and subsequent interim payments, were processed strictly in accordance with the project's progress. JKR Negeri Sembilan saw over RM24.3 million disbursed to KCJ Engineering during this period for work undertaken on the new road construction project.
Contract Award and Advance Payment Provisions

KCJ Engineering was awarded the RM62 million contract on July 30, 2021, for the construction of a new road connecting Felda Bukit Jalor to Gemas in Negeri Sembilan. The terms of government projects under JKR's purview allow contractors to apply for an advance payment, which is capped at 25 per cent of the total contract value or a maximum of RM10 million. This advance payment is contingent on the availability of allocated funds by JKR.
Project Progress and Contractual Terms

The JKR granted an extension of time for the project, pushing the expected completion date to the end of July. This extension was attributed to valid reasons, including additions to the original scope of work. Wan Hasnan affirmed that no special treatment, terms, or conditions were imposed on KCJ Engineering's contract, indicating a standard procurement process. The project's progress is meticulously monitored through monthly meetings, and as of the testimony, all completed work adhered to JKR's specifications, with the project not being classified as "sick." The contract has not been terminated due to any alleged corruption or illegal activities.
Prior Proposal and Contract Evaluation

It was previously noted that former prime minister Tun Sri Muhyiddin Yassin had proposed KCJ Engineering for the road project with an initial estimated value of RM100 million through direct negotiation. While KCJ Engineering initially did not pass the Finance Ministry's evaluation, they were subsequently awarded the RM62 million contract after successfully passing a second evaluation.

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Did the PMO interfere in government payments to KCJ Engineering?

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