Malaysia lifts Gammon ban
MALAYSIA has lifted its ban on Gammon, Hong Kong's leading construction group, allowing it to take part in a competition to build a $1.5 billion office project in Kuala Lumpur.
The company was barred two weeks ago in the wake of Malaysia's aid-for-arms row with Britain because of its strong links to Trafalgar House, the British construction and shipping conglomerate. Trafalgar House and Jardine Matheson each own a 50 per cent stake in the firm.
But in a subsequent appeal, Gammon wrote to Malaysia's state-owned oil company Petronas saying it was a Hong Kong-based contractor with no direct contact with Britain.
William Kocass, Gammon's group managing director, confirmed the ban had been lifted.
''Yes, we have been allowed to bid, but you will have to go to Petronas for anything more,'' he said.
Mr Kocass said there was still secrecy about the decision and it would not do anybody any good to be seen talking to the press.
Gammon has been the only non-British firm to be penalised by the Malaysian authorities as a result of links with companies in the United Kingdom.
Sources in Malaysia said Gammon had done well to get the ban reversed.
''The company is on probation. It will be interesting to see what happens when tenders are returned and what the Malaysian authorities do if it looks likely Gammon could get the job,'' commented one source.
''Having reconsidered its decision to let Gammon take part it would be very difficult for Petronas to turn round and stop the contract from being awarded.''
