China requests ‘friendly consultation’ over assets seizure from state-linked company in Malaysia

Malaysian Prime Minister Mahathir Mohamad confirmed on Monday that more than US$244 million had been seized over uncompleted work

But a spokesman for China’s foreign ministry claims the project was carried out ‘in accordance with the contract’

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Visitors walk by an exhibition booth of China National Petroleum Corporation at an industry fair in Shanghai. Photo: AP

Published: 8:05pm, 16 Jul 2019Updated: 3:50am, 17 Jul 2019

China’s government expressed hope on Tuesday that Malaysia’s dispute with a state-owned Chinese company building two multibillion-dollar gas pipeline projects can be resolved through “friendly consultation”.

Foreign ministry spokesman, Geng Shuang, said the project being built by a subsidiary of state energy giant China National Petroleum Corporation was “carried out in accordance with the contract.”

Chinese Foreign Ministry spokesman Geng Shuang. Photo: AP

The comments came a day after Malaysian Prime Minister Mahathir Mohamad confirmed his government had seized more than 1 billion ringgit (US$244 million) from a bank account of China Petroleum Pipeline Bureau as the oil and gas pipeline projects, worth US$2.3 billion, had been cancelled.

Mahathir said Malaysia was entitled to reclaim the money as over 80 per cent of the cost had been paid out but only 13 per cent of work completed.

“For problems arising in cooperation, the two sides should properly resolve them through friendly consultation,” Geng Shuang said.