Malaysia seized US$240 million from Chinese company over pipeline project: PM Mahathir

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KUALA LUMPUR: Malaysia seized more than 1 billion ringgit (US$243.5 million) from a bank account of state-owned China Petroleum Pipeline ...

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

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. 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.

 

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