❓ Opposition MP questions the Energy Minister about an alleged undisclosed $21.3 million payment to Kempe Group for the Muja AB refurbishment project. The Minister defends the payment as legitimate contract variations due to unforeseen asbestos and tables evidence of prior disclosure.
AnsweredQoN 276Legislative Assembly
QuestionView source ↗
MUJA AB — REFURBISHMENT — KEMPE
GROUP
276. Mr W.J. JOHNSTON to the Minister for
Energy:
I refer to the Muja AB scandal.
(1) Can the
minister confirm that Kempe Group was paid $131.3 million for its fixed-price
engineering, procurement and construction contract?
(2) Can the
minister confirm that this payment was for that fixed-price contract that was
worth $110 million?
(3) Can the
minister explain why he has never told Parliament or the people of Western
Australia about this additional $21.3 million payment, except in a footnote to
a single table in a 24-page report?
GROUP
276. Mr W.J. JOHNSTON to the Minister for
Energy:
I refer to the Muja AB scandal.
(1) Can the
minister confirm that Kempe Group was paid $131.3 million for its fixed-price
engineering, procurement and construction contract?
(2) Can the
minister confirm that this payment was for that fixed-price contract that was
worth $110 million?
(3) Can the
minister explain why he has never told Parliament or the people of Western
Australia about this additional $21.3 million payment, except in a footnote to
a single table in a 24-page report?
AnswerView source ↗
(1)–(3) I
know the member tries, but the blinkers are just in front of his eyes. Kempe
signed a contract for $110 million to refurbish the plant. That is true.
However, as in all contracts, there are clauses for revisions if something is
found within that, and it was. Kempe found that it had to put in additional bagging
because it found more asbestos, and other factors. Therefore, Kempe got
revisions of an additional $21.3 million, so that contract cost $131.3 million.
These revisions are not odd; they were verified and they were paid. As to the
lack of disclosure, I table in Parliament, right now, page 40, table 3–7,
from a report that I tabled in Parliament on 30 August 2013 that has all the
costs listed. The table has ''EPC'', $110 million, and underneath
in another row is ''EPC Variations'', $21.3 million. It is there
if the member looks and does his homework. It is not a footnote; it is in the
column—get with it. The problem lies with the member; he should take
off the blinkers and put them to the side rather than in front of himself.
[See paper 1531.]
know the member tries, but the blinkers are just in front of his eyes. Kempe
signed a contract for $110 million to refurbish the plant. That is true.
However, as in all contracts, there are clauses for revisions if something is
found within that, and it was. Kempe found that it had to put in additional bagging
because it found more asbestos, and other factors. Therefore, Kempe got
revisions of an additional $21.3 million, so that contract cost $131.3 million.
These revisions are not odd; they were verified and they were paid. As to the
lack of disclosure, I table in Parliament, right now, page 40, table 3–7,
from a report that I tabled in Parliament on 30 August 2013 that has all the
costs listed. The table has ''EPC'', $110 million, and underneath
in another row is ''EPC Variations'', $21.3 million. It is there
if the member looks and does his homework. It is not a footnote; it is in the
column—get with it. The problem lies with the member; he should take
off the blinkers and put them to the side rather than in front of himself.
[See paper 1531.]
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