By Clara Chooi
The Malaysian Insider
Sep 29, 2011
KUALA LUMPUR, Sept 29 — A leaked US diplomatic cable issued in 2007 said that Malaysia’s RM21 billion trans-peninsula oil pipeline was likely launched as a means to reward Umno loyalists with lucrative contracts if Kelantan’s PAS government fell in Election 2008.
The cable pointed out that no Environmental Impact Assessment (EIA) reports were prepared nor economic viability studies conducted for the project as ecological risks were not a major concern to the then Abdullah administration.
“Domestic politics may be a bigger driver for the project than the potential economic payoff,” said the cable, leaked by whistleblower site WikiLeaks and published by the Malaysia Today news portal today.
It said the government viewed the pipeline, which was to run from Kedah to Kelantan, as an opportunity to reward Umno supporters “regardless of whether or not the project makes long-term sense”.
“The refinery and pipeline in Bachok would be seen as a potential Umno deliverable and might just tip the balance in a PAS-controlled state shortly before the election,” the cable said.
It added that such order of business for major projects in Malaysia was “typical”. Continue reading “Kedah-Kelantan pipeline carrot for Umno men, claims US cable”