View Full Version : PKFZ: Answers wanted
25th December 2008, 03:13 PM
A number of questions have yet to be answered satisfactorily:
1. On what basis was the price of rm25 per square foot determined? Why did not the Port Kelang Authority negotiate directly with the landowners (a local cooperative ) on Pulau Indah.
2. Who are the people behind Kuala Dimensi? What is their expertise as project managers? Are there other bidders?
3. What the status of the four letters of support which were issued to banks and related funders? Were then Ministers of Transport authorised to issue them?. If they have acted beyond their authority, will action be taken against them?
4. If evidence of improprieties, corruption and abuse of power are now available, will actions be taken against the perpetrators?
5. What is the final cost of the project? Is it still viable? Will be more funds be needed to keep it afloat and how much?
6. Finally, why did the foreign partner pull out of the PKFZ project?
The Malaysian public has the right to demand answers from the Federal Government and as Minister in charge, Ong Teck Keat must take full responsibility not cover up to save the skin of his predecessors and UMNO and MCA cronies.—Din Merican
28th December 2008, 06:26 PM
Haiyah..Ong Tee Keat is not going to reveal all. He is going to say.."Naah! What are you going to do about it? BN is in power, we only reveal what we want you to know." So wake up KT voters!
1st May 2009, 10:48 PM
Looks like Besitai was right.
The PKFZ saga in brief
Written by Lam Jian Wyn Thursday, 30 April 2009
The long-drawn Port Klang Free Zone (PKFZ) issue took another turn with The Edge Malaysia's expose on the mammoth project, both in size and cost.
We provide you with a simplified version of the case, along with a list of who's who and a timeline that explains the dealings.
Here are some current articles to help you catch up on the issue:
3rd June 2009, 10:49 AM
Why Dubai's JAFZA abandoned PKFZ?
Posted by admin
Tuesday, 02 June 2009 13:57
Noel Gulliver was escorted from his office to the Immigration Department for "being in gainful employment without a work permit" – although the agreement between Jafza and Port Klang Authority (PKA) indicates that it is PKA’s responsibility to obtain a permit for Gulliver.
THE CORRIDORS OF POWER
Now, get back what belongs to us
Citizen Nades - By R. Nadeswaran, The Sun
IT was a trip to be remembered. The 40-minute drive in mid-2004 to Southern Park in Klang was at the invitation of neighbours of a Klang High School mate – Krishnan Tan – a man with a passion for sports, especially rugby. In his neighbourhood, someone had plonked a brick building on a playing field which residents used for sports and recreational activities under the pretext of providing a Rukun Tetangga base. Residents objected but no one would listen. The political force over-rode the people’s will. Appeals were dismissed summarily and only a court order prevented its completion. Today, the uncompleted structure is a standing monument which does justice to the political tsunami of March 8. It was at this meeting that someone whispered about the "Port Klang Free Trade Zone (PKFZ)".
While the stalemate on the building was the subject of my column and since it involved land, there was a small rejoinder at the bottom on how land meant for the PKFZ was "traded" by some well-known local politicians and their families. And that was the first time Malaysians ever knew about what has now become the "RM12 billion scandal" dwarfing the Bumiptra Malaysia Finance fiasco which cost taxpayers a whopping RM3 billion in the Eighties.
In the following months, theSun’s investigative team kept its focus on the PKFZ while exposing other irregularities including the infamous Zakaria’s palace in Port Klang. In between, I had written about the deals that had taken place and implications to the taxpayer. In August 2005, the first signs of the humongous problems that lay uncovered in the archives of the Klang Port Authority (KPA) were made public. We managed to lay our hands on the auditor-general’s report, which among others, touched on the precarious position it was in.
I wrote: The Port Klang Authority (PKA) could be heading for financial trouble. If government funding is not forthcoming, it could be wound up by parties it entered into agreements with, as it does not have the necessary funds to go through with projects costing in excess of RM2 billion. Well, that’s not my view but that of the auditor-general (AG), in his report contained in the authority’s 2003 annual report.
The AG’s report, it says that the agreement states that PKA paid a 10% advance amounting to RM108.85 million and the balance of RM1.7 billion is to be paid over 10 years from 2007 until 2017, with annual payments of between RM130 million and RM179 million. This is not the only troubled transaction. According to the AG, the PKA signed another agreement in 2003 with the same company to develop the project for RM519 million.
Here’s the clincher from the AG’s report: In early 2004, the PKA again signed a supplementary agreement with the same company. Through this agreement, the project development cost has increased to RM1.3 billion.
This capital outlay for the development of the project will be advanced by the company and PKA will pay RM100 million in 2004, with the balance to be paid from 2007 until 2012, an annual payment basis ranging from RM53.89 million to RM230 million ... the authority does not have sufficient financial resources to meet this obligation. The PKA’s income before tax was between RM500,000 and RM21.19 million, whilst income after tax was between a deficit of RM1.52 million to a surplus of RM16.31 million. Based on PKA’s financial position, we are of the view that the PKA needs to look for sources of financing to meet the capital obligation of RM2.90 billion from 2007 to 2017."
This is an astonishing scenario and the bleak prospect that taxpayers’ funds are going to be used to bail out an ill-thought out and ill-conceived idea is frightening indeed. (emphasis is the writer’s) (http://www.sun2surf.com/article.cfm?id=10626)
Despite an authoritative report from none other than the auditor-general, no one moved. The then PKA chairman, Datuk Yap Pian Hon turned up at the office for a chat offering no answers and neither understanding the depth of the problem. Overtures were made by third parties which even led to one confrontation on the basis that I should not write anything more because "it was Dr Mahathir’s project" which I refused to believe. In Parliament the then Transport Minister Datuk Seri Chan Kong Choy denied allegations that the Port Klang Free Zone (PKFZ) project is a failure.
In a written answer to Lim Kit Siang (DAP-Ipoh Timur), he said despite the PKFZ having only begun operations on Nov 1, 2006, it had attracted 30 investors with investments totalling about RM725 million and offering 809 jobs. "There is no hanky panky involved in the implementation of PKFZ. This project was approved by the government," the Hansard quoted him as saying.
The volume of investigations became so exhaustive that colleague Terence Fernandez came on board to jointly get to the bottom of it all. It was then that we discovered the "real" issue relating to the abrupt departure of Dubai-based Jebel Ali Free Zone (Jafza) which was contracted to manage the PKFZ.
We wrote: The separation was acrimonious. The correspondence between both parties which we obtained, include strongly-worded e-mails, disclose that Jafza bailed out because of bureaucracy, interference by politicians and others with vested interests, deliberate incorrect minuting of meetings and even attempts at tax evasion by the Malaysian negotiators.
A turf war also erupted over Noel Gulliver, Jafza’s man, who was PKFZ general manager. He was escorted from his office to the Immigration Department for "being in gainful employment without a work permit" – although the agreement between Jafza and Port Klang Authority (PKA) indicates that it is PKA’s responsibility to obtain a permit for Gulliver.
The dossier, which borders on deceit and lies, points the cause of the collapse of the deal between Jafza and PKFZ at the government machinery and one woman – PKA chairwoman and general manager Datin Paduka O.C. Phang. (www.sun2surf.com/article.cfm?id=18941)
Then, we discovered that (PKA) bought land meant for the PKFZ well aware that it was encumbered property. This, say government sources, is highly irregular as anything the government and its agencies buy must have a clean title. PKA entered into discussions with Kuala Dimensi Sdn Bhd (KDSB) in 2001 to buy 404ha. At RM25 a sq ft, the deal was worth over RM1 billion.
On signing the sale and purchase agreement in late 2002, PKA paid 10% of the purchase price. The state government had originally alienated the land to the Pulau Lumut Development Co-operative (KPPL) which in turn sold it to KDSB for RM3 a sq ft. It was noted that the chairman of KPPL at the time of the sale – Sementa Assemblyman and state executive councillor Datuk Abdul Rahman Palil – was also a director of PKA.
When the sale to PKA became public knowledge, several members of the co-operative put private caveats on the land to prevent any sale without their interests being considered. Besides, at the time of the PKA-Kuala Dimensi deal, there were at least "five or six" further interests registered on the titles by mortgagors. Several months after the purchase, the government and PKA were advised that misrepresentation had been made in the deal and that it was not a "willing buyer, willing seller" arrangement, as KDSB could not transfer the land free of encumbrances. However, KDSB director Faizal Abdullah told theSun that the transfer took place within a year of the signing and PKA owns 100% of the land. "Anyone who says otherwise is lying," he said. (www.sun2surf.com/article.cfm?id=19026)
Over the years, we have written dozens of stories on the wrongdoings. Today, five years after theSun broke the story and after denials, clarifications and the lot, we stand vindicated. The report prepared by PriceWaterhouse-Coopers is testimony to why we chose to pursue the issue relentlessly – taxpayers’ money was involved but there seemed to be neither transparency nor accountability – the cornerstones of good governance. The figures quoted in our reports may not have been spot-on but the facts remain.
So, what happens next? Will those who were responsible for this debacle be brought to book? Will they be punished for their wrongdoings, if any? Will the government make a concerted effort to recover the money that was taken away? Will those responsible be named and shamed?
In the past, several such reports and findings of royal commissions of inquiry have just been an exercise to appease the public. Remember the fire and the explosions at the Bright Sparklers factory in Sungai Buloh? What happened to the findings of that report?
Well, for Prime Minister Datuk Seri Najib Abdul Razak, this is a golden opportunity to send the message to all and sundry that he will not tolerate any wrongdoing, misuse of power and the lot. It is obvious that overtures and appeals would be made to "close the case" as has happened in the past. We believe that he will allow the law to take its course. It is not his nature to sweep things under the carpet.
In the meantime, the PKA board must work with their lawyers with a view to initiating civil action to recover monies which rightfully belong to taxpayers. Movements of assets may already be taking place and hence the issue of obtaining Anton Pillar orders for freezing the assets – local and abroad – of those involved must be a priority. More… (http://mt.m2day.org/2008/content/view/22682/84/)
11th June 2009, 09:35 PM
First we have Pricewaterhouse Coopers to audit PKFZ. Now we have a Task Force to audit the audit. Keep on dragging the issue. It's been going on for donkey years.
Here's the list of management and directors from 2001 to 2007. Isn't it interesting that they have political party representatives on board as well? What has a political party got to do with the management of a free trade zone? Is it to ensure that they get their fair share of the loot?
Former chairman of PKA
Datuk Ting Chew Peh - former Housing and Local Government Minister
Datuk Chor Chee Hiung - Deputy Finance Minister
Datuk Yap Pian Hon - former MP
Former GM, PKA
Datin Paduka O.C. Phang
Zubir Abdul Aziz, Nor Rizan Mohd Thani & Mohamad Nor Taib
Selangor State Sec
Datuk Mohd Sinon Mudzakir & Datuk Dr. Abdul Munip Kasmin & Shamzul Azri Abu Bakar (replaced by Datuk Noordin Sulaiman)
Mohd Bashir Maskijo & Ahmad Abu
Abdul Rahman Mohd Noor, Datuk Zakaria Bahari & D. Chandrasekaran (replaced by Datuk Muhd Safaruddin Muhd Sidek)
Mohammad Imail (replaced by Abdul Rahim Mokti), V. Ravindran & Mohd Zainuddin Ahmad Rashidi
Tan Sri G. Gnanalingam - Exec Chairman
Political Party Representatives:
Choong Tow Chong & Low Chew Jun & Tan Boon San @ Tan Hock Guan
Datuk Abd Rahman Palit & Datuk Ahmad Bhari Abd Rahman
Task force on PKFZ set up
PUTRAJAYA (June 10, 2009) : Two weeks after an independent audit report on the Port Klang Free Zone fiasco made shocking disclosures on management and governance issues, a special task force has been set up to pave the way for action to rectify the wrongs and to pursue appropriate legal remedies.
Transport Minister Datuk Seri Ong Tee Keat, who announced this at a press conference today, said he has given the task force two months to come up with recommendations based on the findings of the PricewaterhouseCoopers (PwC) audit report.
He said two committees -- Committee on Corporate Governance and an Executive Committee -- have also been formed to oversee all future governance issues to ensure that the lapses that have been identified in the report do not recur.
The task force is headed by Skrine and Co's Vinayak Pradhan, who is also former commissioner with the United Nations Compensation Commission and member of the Permanent Court of Arbitration. He will be assisted by Skrine partner Lim Chee Wee, PwC Advisory Services Sdn Bhd (PwCAS) managing director Chin Kwai Fatt and senior executive director Lim San Peen. More… (http://sun2surf.com/article.cfm?id=34492)
11th June 2009, 09:37 PM
PKA officials quizzed over escalating cost of PKFZ
KUALA LUMPUR (June 10, 2009) : The Public Accounts Committee (PAC) yesterday queried the Port Klang Authority (PKA) on the escalating cost of the Port Klang Free Zone (PKFZ) project, continuing an inquiry that started in late 2007.
PAC deputy chairman Dr Tan Seng Giaw told reporters the PAC had set two days to enable PKA officials to shed light on the fiasco.
PKA chairman Datuk Lee Hwa Beng, Transport Ministry secretary-general Datuk Zakaria Bahari, PricewaterhouseCoopers (PwC) managing partner Chin Kwai Fatt and senior partner Lim San Pen, and four senior staff of PKA faced the PAC today.
"We want to know who had decided to ignore the Attorney-General's recommendation that the land in Pulau Indah (where the project is located) should be acquired by the government," Tan told reporters after meeting PKA officials at Parliament lobby here.
He said this was because the government could invoke Section 4 of the Land Acquisition Act 1960 to prevent price speculation before taking over the land.
"We want to know who had decided not to impose Section 4 of the Act," he said. More… (http://sun2surf.com/article.cfm?id=34493)
29th June 2009, 05:38 PM
1st July 2009, Wednesday.
Title: RM12.5b PKFZ Scandal - Still No Answers!
Speakers: Lim Kit Siang, Tony Pua, Charles Santiago and Dr Dzul.
Venue: MBPJ Civic Hall
13th August 2009, 05:57 AM
Reports: 4 Action: 0
Monday, 10 August 2009 07:18am
©The Sun (Used by permission)
by R. Nadeswaran
NEVER in the history of this country has there been so much vigour in
the demand from the public to get to the bottom of a scandal-ridden
project. The country has never seen the enthusiasm and openness of a
minister who is bent on seeing justice to a problem which he
inherited. Never has a minister committed himself to seeing the
cornerstones of good governance - transparency and accountability -
being practised. Never have so many people been involved in so many
committees presenting their views on one single government project
which had gone woefully awry.
Today, the task force of legal, accounting and project development
experts, who were appointed to provide Port Klang Authority (PKA) with
recommendations on how to recoup some of the RM7.5 billion already
sunk into the Port Klang Free Zone (PKFZ), will present their views.
Heading the team is Vinayak Pradhan, from prominent law firm Skrine,
who is a former commissioner with the United Nations Compensation
Commission and member of the Permanent Court of Arbitration, and
assisted by two directors of PricewaterhouseCoopers (PwC).
This will be the fourth report for the PKA board. Previously, it had
assigned PwC which produced a comprehensive report with appendices,
which highlighted the damning evidence of mismanagement.
Later, the Public Accounts Committee held its hearings and gave its
damning views - PKFZ project was managed by a "very incompetent group"
of people. Almost immediately the Transport Ministry-appointed ad hoc
committee on administration and corporate governance produced an
indictment - the PKA board, the managing body of PKFZ, did not
discharge its fiduciary duties diligently.
The Pradhan Committee report will provide the PKA board with the legal
implications and remedies on the actions which resulted in what
started as a RM2 billion project ballooning to RM12 billion. But
reports must be acted upon. If they are allowed to gather dust like
the report on the Royal Commission of Inquiry into the Bright
Sparklers disaster in Sungai Buloh, they will be viewed as yet another
exercise to appease and whet the appetites of those who demand for the
proverbial pound of flesh.
The PKA board must adopt and implement the recommendations in these
reports. Just receiving them, making them public and warming their
chairs is not acceptable. If they don't institute the proposed
actions, it as good as not having them.
In this column on June 10, I asked these questions of the former
directors: "What were the board members of the Port Klang Authority
doing? Weren't they entrusted with the task of being policymakers and
the staff being the implementers? Did they fail in their duties? Why
was there an oversight? Why were they kept in the dark? Why didn't
they ask for regular briefings on the project? ... Didn't it occur to
them that something was amiss? Weren't they aware that they have to
agree and endorse any agreement that was entered into?"
Today, after they get the fourth report in their hands, I would modify
the same questions to the present board members: "What are you going
to do with these reports? Are you going to implement the
recommendations? Are you going to lodge police reports where criminal
offences have been committed? Are you going to seek legal remedies to
recover the ill-gotten gains? Are you going to seek an order to
impound the passports of the suspects before they fly the coop? Are
you going to get Mareva injunctions to prevent them from disposing
their assets? Are you going to get Anton Piller orders to trace the
whereabouts of the profits from ill-gotten gains? Would you take
action against PKA officers who did not follow procedures?"
To put the matter in the right perspective, let me reiterate that I am
not accusing any individual or corporation of wrongdoings. That's not
my job. What I am saying is that once the reports have identified the
key people, the board is left with little choice but to not only seek
civil remedies, but also bring to book the wrongdoers. If the
directors of the board fail to do so, they will be no different from
their predecessors who sat back and feigned ignorance on what was
taking place in front of their eyes.
If the present board does not act, then it too will be failing in its
fiduciary duty as required by the Companies Act and other laws.
Inaction can only lead to one action - public interest litigation
against each and every one of them.
R. Nadeswaran hopes PKA chairman Datuk Lee Hwa Beng and his fellow
directors will no longer give excuses for not initiating action to
recover monies belonging to the people. The writer is editor (special
and investigative reporting) at theSun. He can be reached at:
24th August 2009, 06:25 PM
Malaysia’s Port Storm
By Anwar Ibrahim
From The Asia Sentinel
Malaysia’s Anti-Corruption Commission has been tireless in the pursuit of wrongdoers, particularly those from the opposition Pakatan Rakyat coalition that controls Selangor, Malaysia’s richest state. But somehow – perhaps just an oversight – the MACC has been dawdling for five years on a case that appears to be one of the biggest scandals ever to hit a country that has generated some spectacular ones.
That is the RM7.45 billion (US$2.12 billion) cost to turn Port Klang, the seaport 70 km. west of the capital of Kuala Lumpur, into a national transshipment hub to rival the Jebel Ali Free Zone in Dubai. Its directors say it is likely to default on billions of ringgit in loans, with the possibility, according to an auditor’s report, that accumulated interest could drive the cost to a whopping RM12.45 billion. Anwar Ibrahim blog. (http://anwaribrahimblog.com/2009/08/24/malaysias-port-storm/)
24th August 2009, 06:32 PM
Monday, August 24, 2009
On the PKFZ, Ong Must Not Walk Alone
MCA president Ong Tee Keat today filed a RM500 million defamation suit against BN Backbenchers Club chairperson Tiong King Sing over the latter's claim of giving RM10 million to the minister. The suit was motivated by Tiong's allegation that he had 'donated' RM10 million to Ong.
This is a funny story. If Tiong had made a donation and expected nothing back in return what is the motive for Tiong to turn the donation into a credibility issue for Ong? Is the BNBBC chairman and Bintulu MP expecting his favour to be returned in the PKFZ expose.
Many Malaysians may not be motivated to defend or support Ong in this issue because he is the president of a BN component party. I am equally baffled why Ong has continued to defend and tolerate UMNO's racist policies and statements. But this is entirely a different issue.
The fact is Ong is merely doing his job to investigate the PKFZ financial fiasco which is threatening to pull a dark cloud over the country. Without his commitment to dig deep into the issue, it would not have been possible for us to find out that there may be a potential breach of financial integrity which had lead to an over billing of RM500 million to RM1 billion.
On the PKFZ, Ong has obviously risked it all. Based on my current assessment, it will be a tough battle for Ong to keep his parliamentary seat (Pandan) in the next general election. I am sure many parties are out for his blood and he will end up having to pay a high price for his political career.
MCA's insistence to continue working with UMNO may be a bad political calculation. But it must not discount the fact that Ong's good work to honour his commitment to account for the PKFZ fiasco is admirable.
For this, he must not walk alone.
Many rich and powerful people are using the judiciary (defamation suits) to silence critics and to shut out people from reporting their wrongdoings. I sympathize with Ong because I am a victim of such devious act as well which wanted to put me in a difficult financial position. http://khookaypeng.blogspot.com/2009/08/on-pkfz-ong-must-not-walk-alone.html
25th August 2009, 05:20 PM
Is PFKZ a curse or blessing?It is a blessing for PR as bn cannot shake off this curse[depending on how well PR keet it alive in the minds of the rakyats].
5th September 2009, 03:02 AM
Business jargon and memory loss
Updated: 12:06AM Fri, 04 Sep 2009
THE ongoing revelations from the Public Accounts Committee (PAC)
hearing on the Port Klang Free Zone (PKFZ) financial fiasco that is
costing taxpayers in excess of RM5 billion, is a revelation of how
some take a cavalier attitude towards the obligations of a job they
are paid to do - in this case, a national project using public funds.
One finds it hard to stomach former Port Klang Authority (PKA) general
manager Datin Paduka OC Phang's claim of memory loss over certain
pertinent issues during Wednesday's hearing.
Even more so is her declaration that she does not understand what the
committee meant by "cash flow projections" - prompting PAC chairman
Datuk Seri Azmi Khalid to give her an impromptu tutorial.
With a BA from University Malaya and a Cranfield School of Management
graduate and years of working in the finance divisions of various
ministries, Phang should be more convincing if she wants to play dumb.
She is, however, correct in one thing - that as general manager she
should take responsibility for the colossal losses incurred by the
And that includes the PAC's, as well as the audit committee's findings
previously that PKA did not follow basic management principles when
running the free zone. Even after the dust has settled and those
responsible booked for mismanagement, incompetence, abuse of power or
even corruption, the PKFZ story should continue to be told in years to
It should be a permanent case study of the heavy responsibilities that
come with being entrusted with a project which was meant to benefit
all Malaysians, lest we forget and allow another PKFZ in time to come.
After all, the free zone fiasco came at a time when the RM2 billion
BMF scandal was all but a distant memory.
"What's cashflow projection?"
This is not a qualifying exam question for chartered accountants.
I was asking this to a newspaper vendor the other day.
"Hey! So simple!"
"For example, I get the newspapers from the factory. They give me
one-month credit. I sell the papers every day and get my money. Other
than paying for fixed expenses, I've got to make sure I have enough
money to pay the newspaper company end of the month."
"So, I must control the inflow and outflow of cash. I must have enough
cash in hand and make provision for all types of expenses."
"Or I won't be able to pay the newspaper company and they won't give
me the newspapers to sell!"
This is fundamental knowledge which is like peanuts to newspaper
vendors, and upon which they have operated relatively successful
If we know nothing about cashflow management, then we'd better not
talk about doing business.
But then there's someone saying she has no idea what "cashflow projection"
She used to be the GM of Port Klang Authority responsible for a
billion-ringgit mega project.
Former PKA general manager Datin Paduka OC Phang told the Parliament's
Public Accounts Committee she didn't know what cashflow projection was
PAC chairman Azmi Khalid shook his head in disbelief.
Little wonder that the PKFZ finances are a big mess. Before the cash
has even arrived, the project has started running.
With only a few hundreds of million in hand, she had the guts to
invest in a project costing billions of ringgit!
That gives us some idea how the billion ringgit "black hole" has appeared.
Phang was appointed PKA general manager in 1997 when Ling Liong Sik
was the transport minister. Under her, the PKFZ project was moving
ahead unhindered and in full steam.
When the PKFZ scandal came to light two years ago, she made a timely
retirement and off she went to Australia.
No one has heard much of her since.
A key person in the whole debacle, her return is awaited in much
anticipation, with the hope the mystery of PKFZ black hole would be
Perhaps the retirement life Down Under is too comfortable that her
brain gets degenerated.
That explains why her reply to the many questions is a simple "I don't
No one knows whether she is really that innocent.
(By TAY TIAN YAN/Translated by DOMINIC LOH/Sin Chew Daily)
RM140m of Kuala Dimensi funds frozen
PKA board kept in the dark over project, PAC told
7th September 2009, 11:01 PM
In Cantonese, this is known as stuff the dead chicken for them to eat. Let's see who is going to be the sacrificial lambs.
'Conspiracy' against PKA
by R. Nadeswaran and Terence Fernandez
Updated: 12:03AM Mon, 07 Sep 2009
PETALING JAYA (Sept 6, 2009): The cabinet will be told on Wednesday
that several parties, including former Port Klang Authority (PKA)
general manager Datin Paduka O.C. Phang and turnkey contractor Kuala
Dimensi Sdn Bhd (KDSB), were named as "possible conspirators" who have
harmed or injured PKA in the Port Klang Free Zone (PKFZ) project.
Cabinet ministers will be given details of alleged deceit, fraud,
double-billing and non-existent claims that were submitted for which
payment was made with Phang's tacit approval.
The details of these and other irregularities are contained in the
report by the Special Task Force which probed the PKFZ fiasco.
According to those-in-the-know, the report heavily implicates Phang
for losses incurred in the development of the free zone as she had
breached her fiduciary duties and made questionable unilateral
decisions detrimental to the PKA, without consulting the PKA board.
These findings appear to corroborate contents of a police report
lodged by PKA chairman Datuk Lee Hwa Beng last month which accuses
KDSB, its CEO Datuk Seri Tiong King Sing, Phang, BTA Architect and
consultant Bernard Tan Seng Swee of "alleged conspiracy in the
The task force headed by Skrine & Co senior partner Vinayak Pradhan
briefed Bukit Aman's Commercial Crimes Division on its findings last
week, following which police froze KDSB's bank accounts totalling
RM140 million last Friday.
On Friday, the task force and Inspector-General of Police Tan Sri Musa
Hassan briefed Prime Minister Datuk Seri Najib Abdul Razak on the
status of the probe.
According to one source, the task force also found that Phang had
varied the interest rate of a contract without consulting the board
which caused the authority to incur additional costs of RM49 million.
The task force found that Phang had placed the interests of KDSB above
those of PKA and deied Government General Orders and Treasury
guidelines on a variety of issues related to the project.
Phang had earlier been implicated in PriceWaterHouseCoopers' (PWC)
audit report released three months ago which pointed out, among
others, that she had used the Common Seal without approval and had
exceeded her authority of entering into contract
Police are investigating the activities of Phang, who is also alleged to
> approved fraudulent claims from KDSB;
> accepted only advice favourable to KDSB, sidelining employees who
consistently raised costing and budgetary concerns;
> refused to heed legal and professional advice of PKA officers in the
appointment of quantity surveyors where she had also delayed the appointment
of surveyors, while restricting their role;
> insisted that Perunding BE Sdn Bhd be appointed sole quantity surveyor
although she knew that there was a clear case of conflict of interests since
the firm was also appointed by KDSB for the same project;
> appointed Perunding BE without approval from the Finance Ministry;
> issued various consents and undertakings, as well as unilateral decisions
committing PKA without approval from the board;
> committed PKA knowing very well that it was under budget constraints to
fulfil its obligations although the government had agreed that PKA would
fund the free zone from its own funds.
The task force findings accuse KDSB of:
> requesting a revision of the infrastructure plan for drainage and piping
works claiming that it was unaware of the specifications of these works when
the Legal Agreement had specifically spelled them out;
> double-billing PKA for drainage and piping works;
> billed PKA RM55.7 million for electrical infrastructure works which had
yet to start;
It holds Tiong responsible as the "directing mind" behind KDSB by
virtue of his position in KDSB, as well as being the substantial
shareholder (70%) of holding company Wijaya Baru Holdings Sdn Bhd.
The task force, it is learnt, had also exonerated legal adviser
Fazilah Surkisah Mohammad, saying there was no evidence of wrong-doing
on her part.
On Wednesday, Phang shocked members of the Public Accounts Committee
(PAC) hearing on PKFZ when she said she did not remember certain key
issues regarding the deal and did not understand the basic financial
term "cash flow projections".
Tiong and KDSB meanwhile have filed defamation suits against Transport
Minister Datuk Seri Ong Tee Keat, Lee and PwC.
PKFZ Scandal: 'Conspiracy to kill PKA'
Posted by Jeff Ooi on September 7, 2009 08:14 AM
Will there be a D-Day for the Najib Cabinet on Wednesday, with private-jet
free-rider Ong Tee Keat in attendance? Will someone ultimately go to jail
for fleecing taxpayers' money by the billions?
According to theSun today, the cabinet will be told on Wednesday that
several parties -- including former Port Klang Authority (PKA) general
manager O.C. Phang and turnkey contractor Kuala Dimensi Sdn Bhd (KDSB) --
were named as "possible conspirators" who have harmed or injured PKA in the
Port Klang Free Zone (PKFZ) project.
Cabinet ministers will be given details of alleged deceit, fraud,
double-billing and non-existent claims that were submitted for which payment
was made with Phang's tacit approval. theSun said.
These findings, theSun added, appear to corroborate contents of a police
report lodged by PKA chairman Lee Hwa Beng last month which accuses KDSB,
its CEO Tiong King Sing, Phang, BTA Architect and consultant Bernard Tan
Seng Swee of "alleged conspiracy in the scandal".
To whet your reading appetite, this latest revelation was penned by theSun's
award-winning investigative journalists R. Nadeswaran and Terence Fernandez,
who exploded the PKFZ Scandal on the Malaysians' face two years ago.
And I quote the juicy parts about the role of OC Phang and KDSB in theSun
According to one source, the task force also found that Phang had varied the
interest rate of a contract without consulting the board which caused the
authority to incur additional costs of RM49 million.
The task force found that Phang had placed the interests of KDSB above those
of PKA and defied Government General Orders and Treasury guidelines on a
variety of issues related to the project.
Phang had earlier been implicated in PriceWaterHouseCoopers' (PWC) audit
report released three months ago which pointed out, among others, that she
had used the Common Seal without approval and had exceeded her authority of
entering into contract exceeding RM50,000.
Police are investigating the activities of Phang, who is also alleged to
* approved fraudulent claims from KDSB;
* accepted only advice favourable to KDSB, sidelining employees who
consistently raised costing and budgetary concerns;
* refused to heed legal and professional advice of PKA officers in the
appointment of quantity surveyors where she had also delayed the appointment
of surveyors, while restricting their role;
* insisted that Perunding BE Sdn Bhd be appointed sole quantity surveyor
although she knew that there was a clear case of conflict of interests since
the firm was also appointed by KDSB for the same project;
* appointed Perunding BE without approval from the Finance Ministry;
* issued various consents and undertakings, as well as unilateral decisions
committing PKA without approval from the board;
* committed PKA knowing very well that it was under budget constraints to
fulfil its obligations although the government had agreed that PKA would
fund the free zone from its own funds.
The task force findings accuse KDSB of:
* requesting a revision of the infrastructure plan for drainage and piping
works claiming that it was unaware of the specifications of these works when
the Legal Agreement had specifically spelled them out;
* double-billing PKA for drainage and piping works;
* billed PKA RM55.7 million for electrical infrastructure works which had
yet to start.
Just last Wednesday, OC Phang "enlightened" members of the parliamentary
Public Accounts Committee (PAC) hearing on PKFZ by saying she did not
remember certain key issues regarding the deal, and she did not understand
the basic financial term "cash flow projections".
[ READ Citizen Nades' column today: No cash, no flow, it's Oscar time. ]
We may now want to probe who were the puppet-masters that induced OC Phang's
behaviour while making those alleged fiscal decisions unsanctioned by the
Board? She can't be an operative working all alone.
Again, for the BN government now and then, you reap what you sow.
Chua and Tiong blast Ong for PKFZ cover-up conspiracy allegations
By Lee Wei Lian
KUALA LUMPUR, Sept 7 - Datuk Seri Chua Soi Lek and Datuk Seri Tiong
King Sing blasted Datuk Seri Ong Tee Keat for suggesting that the two
were working together in an attempt to topple him and scuttle the
probe into the troubled Port Klang Free Zone (PKFZ) trans-shipment
Tiong, whose company Kuala Dimensi Sdn Bhd (KDSB) is under
investigation by Ong's ministry for allegedly making RM1.4 billion in
questionable claims while developing PKFZ, confirmed a report that he
is considering legal action against Ong.
"My lawyers are exploring what actions to take," said Tiong.
He also accused Ong of making up the allegation. "Talk facts, don't
create stories," he said.
When contacted, Chua also denied the accusation. "I am not in cahoots
with Tiong," he said. "I don't need Tiong. I just need the wisdom of
Chua, who is locked in a leadership battle with Ong, said that the MCA
president was attempting to smear his name.
"He also tells MCA members that I am a dog and the disciplinary board
will chop my head off. I have people who are willing to be my
witnesses that he said it."
Chua also challenged Ong, who has built up an image of being tough
against corruption, to prove he is "whiter than white."
Ong has denied allegations by Tiong that he received RM10 million in
cash donations for MCA.
He, however, admitted taking free flights on private jets belonging to
Tiong's company even while KDSB was under a cloud of suspicion, which
suggests that the two once had a cozy relationship.
He has also not responded to a dare from Tiong to disclose to the
public the contents of the bank accounts belonging to him and his
"He (Ong) himself has not explained his own tainted image," said Chua.
"He used the private jets five times. Under the government's general
orders, you are not allowed the use of the jets. A lesser official
would have been suspended. He has also not revealed his and his wife's
bank accounts for public scrutiny to remove any doubts. He projects a
very clean and transparent image, so why not disclose the bank
accounts? Why worry?"
Ong's allegations comes after several websites and e-mails circulated
to journalists claimed that Tiong is bankrolling Chua's campaign - to
the tune of RM100 million - to remove Ong as president in exchange for
ceasing all investigations against KDSB after the president is
Chua, however, dismissed the speculation.
"I don't need RM100 million. I just need the support and wisdom of the
"We know that PKFZ will be investigated, with or without Ong. He
projects the investigation into PKFZ as his anti-corruption crusade.
"He conveniently forgot that it was a Cabinet decision to disclose the
investigation into PKFZ and whoever is minister will have to continue
investigating. I don't want to be a senator or a minister. Don't doubt
The Malaysian Anti-Corruption Commission (MACC) has begun
investigating Ong over the RM10 million donation allegations last
The police have also frozen KDSB's bank accounts last week and the
prime minister was also briefed on the matter.
Probe deeper into PKFZ with RCI, says Kit Siang
8th September 2009, 04:54 AM
See the debt figures on a graph.
8th September 2009, 09:17 AM
Damning PKFZ report singles out Kong Choy
KUALA LUMPUR, Sept 8 – A confidential report by a government-appointed task force probing one of Malaysia’s biggest financial scandals has identified serious breaches on the part of several government officials, including a former minister.
The breaches led to billions of dollars in losses at a tottering state-owned transhipment hub, the Port Klang Free Zone (PKFZ).
The yet-to-be-released report, which will be discussed at the weekly Cabinet meeting tomorrow, singles out former transport minister Chan Kong Choy; Madam O.C. Phang, the former general manager of the Port Klang Authority; and board directors of the port agency, for not carrying out their duties with adequate care.
The findings of the special task force, which were read by The Straits Times, also finger Barisan Nasional MP Datuk Seri Tiong King Sing, the main shareholder of private company Kuala Dimensi Sdn Bhd which carried out the construction of PKFZ.
Tiong has been named as one of the “possible conspirators” in a scheme that exposed the government to huge financial losses stemming from the failed PKFZ development venture. TheMalaysiaInsider.... (http://www.themalaysianinsider.com/index.php/malaysia/37135-damning-pkfz-report-singles-out-kong-choy)
9th September 2009, 10:40 PM
[size=14pt]HaHaHa! The Task Force's task is to find out how to cover up. Expecting the Police and the AG to look into malfeasance is like asking a thief to catch himself. You can bet your bottom dollar that truth will be the lowest priority!
This is just an exercise to play for time until the heat is off.
Najib: “The issue is divided into three. One is to identify if there was any misappropriation or abuse of power or anyone acted against the law. This would be handled by the police and the attorney-general. We want a through and complete investigation into the matter. Truth should be the priority.
ces ‘high-powered’ task force for PKFZ
[Datuk Seri Najib Tun Razak ... three areas for the new task force to look into.]
Datuk Seri Najib Tun Razak ... three areas for the new task force to look into.
PUTRAJAYA, Sept 9 – The government has set up a high-powered task force to look into the controversial Port Klang Free Zone (PKFZ) project, Prime Minister Datuk Seri Najib Tun Razak announced here tonight TheMalaysiaInsider.... (http://www.themalaysianinsider.com/index.php/malaysia/37314-najib-announces-high-powered-task-force-for-pkfz-)size]
10th September 2009, 10:25 AM
If Ong Tee Keat can produce all the information to clean up the PKFZ, history will judge him kindly, LKS be damned.
Ong: Let history judge me
Yong Kai Ping, Sep 9, 09
The Port Klang Free Zone (PKFZ) fiasco has turned out to be a nightmare for the MCA, BN and the Transport Ministry.
Dubbed by some as the 'Mother of all scandals', it not only involves a number of MCA and BN politicians but may also turn out to be the death knell for the political career of current MCA president and Transport Minister Ong Tee Keat. TheMalaysiaInsider.... (http://www.malaysiakini.com/news/112509)
10th September 2009, 05:42 PM
MI = MalaysianInsider.
I was wondering why MI made a big hooha over the RM 10 million from Tiong to Ong Tee Keat. In the bigger scheme of things, it is nothing. OTK should be left alone to dig up all the dirt and expose it to the nation.
On a similar vein, it is puzzling why LKS is continuously attacking OTK on the same issue instead of helping him. On the basis of the enemy of my enemy is my friend, who is LKS helping on this issue - UMNO?
How To Get Rid of the MCA President - An Insider's View
Posted by admin
Wednesday, 09 September 2009 15:14
MI is funded using money from Fox Sdn Bhd, (a real PR firm!!) backed by Spinmeister Extraordinaire, Datuk Kali. Datuk Kali, as we all know, is the political father to Khairy Jamaluddin, whose father-in-law is the Father of Sleeping in Public.
THE CORRIDORS OF POWER
I Love Malaysia
So, you think Ong Tee Kiat is the reincarnation of Justice Pao, the wise brave judge who set things right from the ancient Middle Kingdom, now immortalised in Hong Kong TV series? You think OTK is clean as the Pope and brave like Shih Huang Ti who reunited a China from a land of warlords? You think he's the best thing BN ever had since the ISA?
In the tradition of National Geographic Channel, "Think Again". It does not matter what OTK stands for, nor the number of PricewaterhouseCoopers reports he commissions. It doesn't matter how much money he wants the government to recover from Kuala Dimensi (KDSB). Cause no matter what he does, the Hainanese is up against powerful people who's working hand-in-glove with spinmeisters who are plotting his downfall.
In a wired world where perception is King and facts are twisted and spun, OTK is up against a formidable enemy. The enemy is not just the Chua Soi Lek-Tiong King Sing alliance, whose ultimate aim is to get rid of OTK and eventually sweep the PKFZ mess under the rug. The evil alliance knew that to get the public on their side, they need the media - a machinery evil enough to repeat lies so frequent, they can pass off as a page from the Holy Scriptures. They need PR magic that spin endless tales about OTK being under seige. Besides, CSL and TKS know The Star is already under OTK control. Malaysiatoday.... (http://mt.m2day.org/2008/content/view/26648/84/)
10th September 2009, 10:22 PM
Mca is just an obedient dog to umno.The master is terminally ill and will kick the bucket anytime.So it does not matter who remain as president of mca as the party will be buried with umno.A true dog will follow her master to his grave.
10th September 2009, 11:48 PM
Strategy: Investigate it to death. Nothing will happen under the UMNO watch.
How many task forces are needed?
10 Sep 09 : 5.21PM By Tony Pua
DATUK Seri Najib Razak's "performance now" government is fast becoming a
farce with the set up of another "high-powered" task forces to investigate
the RM12.5 billion Port Klang Free Zone (PKFZ) scandal.
The new task force comprising the chief secretary to the government, the
treasury secretary-general, the Attorney-General, and officials from the
transport and finance ministries will look into three areas: (i)
misappropriation, abuse of power and illegal acts, (ii) good governance and
(iii) the PKFZ project's financial feasibility.
Will Najib's super task force on PKFZ scandal be a super "cover-up" task
force to try to "get the cat back into the bag"?
Did Cabinet throw out Skrine's report on PKFZ?
Posted by Jeff Ooi on September 9, 2009 05:41 PM
What's the outcome of today's Cabinet deliberation on the special report on
the PKFZ Scandal prepared by Skrine & Co. on behalf of Port Klang Authority
According to The China Press tonight, the Cabinet deemed it incomprehensive,
and has ordered Chief Secretary Mohd Sidek Hassan to head another inquiry
committee to especially follow through with the investigations currently
conducted by the MACC and the Police.
Most importantly, the paper added, the Cabinet did not deliberate on the
roles played by former Transport Minister Chan Kong Choy and former PKFZ
chairman OC Phang. Instead, MACC and the Police have now taken over
investigations on the PKFZ Scandal.
On the other hand, the evening edition of Sin Chew Daily reported tonight
that the authority will make first arrest of the "key culprits" in the
FAMOUS LAST WORDS... With the Chief Secretary, the MACC and the Police all
stepping in, does this mean Ong Tee Keat has lost his carte blanche to see
through the scandal that all culprits will be dealt with accordingly?
Or simply, is it the end of the road for Tee Keat in Najib's Cabinet?
Tiong and the RM10 million
Liew Nam Chee Updated on Thursday, 10 September 2009 18:50
I have been following with much interest the statements by Bintulu MP Tiong
King Sing, whose company Kuala Dimensi Sdn Bhd (KDSB) is a key component in
the Port Klang Free Zone (PKFZ) fiasco.
PKFZ - bottomless sink hole in Port Klang
By Sim Kwang Yang September 10, 2009
PKFZ scandal: Chan bypassed cabinet
Tiong grilled by police on PKFZ
Tiong asked to help in PKFZ probe
Kit Siang questions whether super PKFZ task force is a super 'cover up'
Tee Keat backs Cabinet task force on PKFZ
Ong's PKFZ mission far from over
PKFZ scandal and MCA party crisis
The Port Klang Free Zone (PKFZ) scandal and the MCA party crisis are
essentially two different matters but they are now tangled up. The PKFZ
scandal is very likely a powerful political bomb and it must be properly
resolved as soon as possible, so that it will not become a burder to BN.
11th September 2009, 07:38 PM
Posted by admin
Friday, 11 September 2009 11:39
By Hakim Joe
This timeline starts from the moment PricewaterhouseCooper (PwC) released its report until today. First, before we even start, it must be noted that the PwC report is a position review and not a comprehensive evaluation of the PKFZ. That the Transport Minister had limited the scope by restricting the terms of reference, PwC is therefore in no position to formulate an accurate assessment of this debacle.
First and foremost, the pertinent question remains how a 2002 RM1.8 billion project had snowballed to a staggering RM12.5 billion venture, a seven-fold increase over its initial estimation. Financing interest, the inflation rate, raw material price increases and normal costs overruns could not possibly have contributed to it alone. Even extremely poor estimation skills by those involved in the preparation of the project plan could not be solely held responsible for this madness.
Somewhat and somehow, someone (or rather a group of people) has taken advantage of the alleged sloppy management by the owners to greatly benefit financially from it. Someone audacious and influential enough to disregard the consequences and someone who thinks that he (or she) can get away with it. To even contemplate theft on such a massive scale, a lot wheeling and dealing must have been pulled off where the benefactors would have agreed to protect one another, if ever discovered. This was not a simple con job entailing a couple of thousand bucks, nor is it an elaborate scheme involving a few million bucks but a daylight robbery where billions are siphoned off.
The overt players alone are impressive. Tun Dr Ling Liong Sik (former MCA Pesident and Transport Minister) Datuk Seri Chan Kong Choy (former MCA VP and Transport Minister), the three former Port Klang Authority (PKA) Chairmen, Tan Sri Ting Chew Peh, Datuk Yap Pian Hon, Datuk Seri Chor Chee Heung (Deputy Finance Minister) and the developer cum Barisan Nasional Backbenchers Club Chairman Datuk Seri Tiong King Sing. We must of course not forget the current MCA president, Datuk Seri Ong Tee Keat (OTK). If these are the people that are out in the open now, what about those that remained covert? Would you believe it if someone told you that these are the only people involved in the nation’s largest “so-far-revealed” scam?
To OTK, this was the definitive “Sword of Damocles” where it is a case of “die-if-you-do-and-die-if-you-don’t”.
To have a reasonable chance of winning the MCA presidency, OTK had resorted to becoming the devil’s advocate, threatening to reveal the PKFZ scandal and thus hoping to become the new champion of the Chinese in Malaysia.
Well, OTK did eventually win the MCA presidency but if he had thought that his words and deeds were going to be quietly forgotten, he had another think coming. The matter of fact is that the PKFZ issue gained national interest after he brought it up. (Ronnie Liu had spent the last four years attempting to nationalise this subject but was perceptibly unsuccessful.) To satisfy the appetite of the public, OTK had commissioned PricewaterhouseCooper (PwC) to conduct a position review with a very limited term of reference, hoping that this restriction would prevent the auditors from coming out with a damning report. Well, he thought wrong (again).
In retrospect, he could have done a Semi-Value “gua tak tahu” or a TDM “I cannot remember” but those lines were purely reserved for entrenched party presidents and not a newly minted one. Bad luck. He could still have quoted OSA (Official Secret Act) when the PwC report was ready but that’s reserved for Umno cadres only. Doubly bad luck. Going into the record books as the shortest ever serving MCA president was never really on his agenda and henceforth the “limited” and “regulated” release of the PwC report to the public.
So, what really did happen? Was the writing already on the wall even then?
The RM3 million dollar PwC report exposed more from its restricted audit results than its limited findings. If a picture paints a thousand words, the “missing” audited sections revealed that this was evidently going to be a cover-up job (after all). Hell, even the header says it all, “The Report is limited in scope”. Would the taxation department accept my company’s audited report that is “limited in scope”? Perhaps OTK erred badly when he presupposed that all readers who took the time to digest the PwC report were incapable of comprehending the financial gibberish as adopted by high-paying accountants and auditors through their usage of grandiloquent financial language. However said, there was no withholding the facts when the PwC report went online. What was not reported was more “obvious” than the items that were reported and the public actually understood the findings of the PwC report. Triply bad luck.
Let’s take a look at the damning PwC report, section 4 to be precise – “Matters for the Attention of the Board”.
Issue 1 – The proposal to purchase the Land was approved by the Cabinet. However, subsequent development proposals were not tabled to the Cabinet for approval.
Issue 2 – PKA failed to alert the Cabinet in a timely manner of its inability to finance the Project from its internal funds.
Issue 3 – The Board did not exercise oversight and governance over the implementation of the Project.
Issue 4 – Advice of the Attorney General was not sought and certain MOF regulations were not complied with.
Issue 5 – There could be potential conflicts of interest arising from the involvement of parties who had prior association with either the Land or KDSB.
Issue 6 – Interest from the MOF soft loan will increase the Project outlay from RM4.947 billion to RM7.453 billion. Unless the MOF soft loan is restructured, total outlay for the Project will increase to RM12.453 billion.
Issue 7 – PKA could have reduced its funding costs had it complied with MOF’s recommendation to issue government-guaranteed bonds and developed the Project in phases.
Issue 8 – The Land was acquired at special value which exceeded market value.
Issue 9 – KDSB may have overcharged PKA for interest by between RM51 million and RM309 million in connection with the purchase of the Land.
Issue 10 – DA3 was not a ‘fixed sum’ contract and did not stipulate a rate for professional fees claimable by KDSB.
Issue 11 – PKA incurred claims of RM95.256 million for general preliminary cost not expressly specified in the DA.
Issue 12 – The final account for DA3 did not include any deduction for value of work not done on three infrastructure components in the Land purchase agreement.
Issue 13 – The RM1 billion development contract was awarded to KDSB before a project masterplan was completed.
Issue 14 – PKA may not have received value for money due to its heavy reliance on KDSB as the turnkey developer.
Issue 15 – Project management and control over the Project was weak.
Issue 16 – Project status as at 31 December 2008 – only the LIU has been issued with CF; defect liability period has expired and certain defects remain to be rectified.
Issue 17 – PKA has projected that it will be in a cumulative cash deficit position in 2012 and will not be able to repay the MOF soft loan instalments from that time on.
Issue 18 – Letters of support issued by MOT could not be construed as a guarantee that PKA would meet its obligations on a full and timely basis.
Issue 19 – The Project’s actual occupancy of 14% is low and it is not generating sufficient revenue to cover its operating expenses.
Issue 20 – PKFZSB has incurred losses since its incorporation and has negative shareholder’s fund as at 30 September 2008.
What was not said was that a lot of the Additional Development Works (ADW) contracts between PKA and KDSB were signed under common seal and authenticated by the PKA top management and that the Cabinet’s approval was not obtained. Datin Paduka OC “I-don’t-know-what-is-projected-cashflow” Phang’s signatures would have been on all these contracts. As PwC’s audit scope was not called to scrutinize these ADW contracts, and unless the federal government look into it right now, it will remain a grey area where accountability is missing. But then again, the federal government might not be actively looking for a scapegoat, let alone those responsible for it.
Another point of view revolves around the buzz that these ADW contracts might not have been tabled in either the Parliament or Cabinet, but received formal approval directly from the PM. We are talking about a tidy sum of RM1.2 billion. What does an ADW contract entails anyway? Well, basically it involves additional infrastructure work that will be undertaken by the developer. These are work that was not specified in the original masterplan. However, the amount stated is staggering owing to the fact that the original budget for the entire project only amounted to RM1.8 billion. RM1.2 billion is an additional 66% of total project cost. (There were 2 ADWs and 1 NADW contracts signed between 30 November 2005 and 26 April 2006.) The Transport Minister then was Tan Sri Chan Kong Choy, the PM was Tun Abdullah Badawi and the PKA Chairman was Dato’ Yap Pian Hon. These three ADW contracts were signed under common seal and authenticated by Datin Paduka OC Phang.
The entire PKFZ project reeked of (deliberate or otherwise) mismanagement and manipulation from the onset. First and foremost, the price of the procured land was higher than the market value. KDSB bought the 405 hectare (999.5 acres) land for RM95 million from Pulau Lumut Development Cooperative Bhd in the late 90s. (First parcel of land at RM1.37 psf and the second parcel of land at RM2.98 psf.) They then resold the same plot of land to PKA a few years later for RM1.09 billion (in 2002) thus making a 1147% profit in the process. Coincidentally, the PKFZ project was also conceived in the late 90s, just about the exact time when the land was purchased by KDSB. KDSB henceforth made a paper profit of RM995 million. It was later revealed that the Attorney-General had said that the land could have been acquired for a “public purpose” under the Land Acquisition Act at RM10 psf rather than RM25 psf that PKA paid for. That is a premium of RM654 million (that just went into someone else’s pockets). BTW, the Transport Minister then was Tun Ling Liong Sik, the PM was TDM and the PKA Chairman was Dato’ Dr. Ting Chew Peh.
Additionally, PKA appointed Rashid Asari & Co, a firm on KDSB’s legal panel and not their own, to handle the sale. Rashid is vice-chief of Umno Kapar. The head of Pulau Lumut Development Cooperative Bhd at the time of sale was Tan Sri Dato’ Seri Haji Onn Haji Ismail, who was also the Permanent Chairman of Umno Kapar. Faizal Abdullah (0.8% shareholder of Wijaya Baru) is the deputy CEO of Wijaya, the Kapar Umno Youth Chief and son-in-law of Tan Sri Dato’ Seri Haji Onn Haji Ismail. The present Chairman of Pulau Lumut Development Cooperative Bhd is Dato’ Haji Abd. Rahman Haji Palil, is the division chief of Umno Kapar.
The situation turned almost comical when PKA awarded the entire project back to KDSB (27 February 2003). The former landowner is now the sole turnkey developer of the PKFZ project. Initial development of PKFZ was only limited to 400 acres at a RM585 million budget (Agreement DA1). This would be appended (later) by agreements DA2 (26 May 2003) and DA3 (27 March 2004) that would bring development to the entire 999.5 acres of land at a contract value of RM1.216 billion (QS4 assessment of the cost is only RM1.118 billion, a difference of RM98 million). Total PKFZ project price (2003) is now revised to RM2.306 billion (including interest costs). Coincidentally, Dato’ Seri Abdul Azim Zabidi (former BSN Chairman and Umno Treasurer) joined the Board of KDSB on 18 July 2003.
To finance the development of PKFZ, the Securities Commission approved the issuance of bonds by a bankruptcy remote special purpose vehicle, Special Port Vehicle Bhd (SPV), to acquire the future receivables from the PKA. This resulted in the issuance of RM1.31 billion asset-backed serial bonds on 21 July 2003. (Abdul Azim Zabidi joined the Board on Friday and the issuance held the following Monday.) Great Profile Sdn Bhd (fully owned by Wijaya Baru Global Bhd of which Datuk Seri Tiong is a 70% stakeholder) received RM820.1 million of this amount as full payment for the purchase of the land (which is minus the down payment already made).
Following the signing of the DA2 and DA3 agreements, KDSB (developer) appointed Wijaya Baru Sdn Bhd (affiliated company) as the main subcontractor. On 24 October 2003, PKA appointed JAFZI as the project consultant to carry out the masterplan and assessment studies for a fee of US$210,000. Additionally, Jebel Ali Free Zone International (JAFZI) was also appointed to operate and manage PKFZ for 15 years at a fee of US$12.3 million. The report was submitted to PKA on December 2003 but the Operation & Management agreement was terminated in 2007 owing to irreconcilable differences four years later.
Agreement DA3 was a supplementary agreement to DA1 expanding the scope of work by KDSB from 400 acres to 1000 acres for RM1 billion on deferred payment basis. The actual contract was worth RM1.303 billion (including interest) is payable over 8 years at 7.5% interest per annum.
To facilitate the funding of the development costs, KDSB setup another special purposes company, Transshipment Megahub Bhd (TMB) which in turn issued RM1.095 billion fixed-rate serial bonds and up to RM360 million commercial papers/medium commercial papers/medium term (CP/MTN) notes (to finance the development of the PKFZ) from November 2004 to August 2006.
As part of the DA1 agreement, PKA paid RM100 million in 2004 to KDSB as initial payment for the development of PKFZ with the balance being payable on a deferred basis, stretching up to 2017.
The first of the ADW agreements (ADW1) was signed on 30 November 2005 for additional development works encompassing junction improvements and construction of electrical infrastructure and a business class hotel. To facilitate funding of these additional works, another KDSB company, Valid Ventures Berhad, was utilised to issue bonds worth RM510 million and up to RM85 million CP/MTN (30 March 2006 to 12 December 2008). The total contract value is estimated at RM510.38 million, excluding the variation order. The actual cost is in fact RM677.1 million inclusive of professional fees, variation order and interest accrued on work done. Payments from the PKA is on a deferred basis, amounting to RM150 million per annum from 2007 to 2009, RM120 million in 2010 and the last payment in 2011. The payment comprises interest accrued on balance payable to KDSB at 5% per annum.
The second of the ADW agreements (ADW2) and the NADW agreement was signed on 26 April 2006 for additional development works at the PKFZ, comprising concrete trenching for electric cables, electrical works for 33KV power supply to designated precincts, civil infrastructure works to the main intake station, direct access pad from the project site to Westport and a link road from the site’s main access roads to Westport. To facilitate funding of these additional works, yet another KDSB company, Free Zone Capital Berhad, was established for the purpose of issuing bonds worth RM410 million and up to RM 70 million CP/MTN. The ADW2 was estimated to cost RM335.8 million, excluding the variation order and professional fees. The issuance of CP/MTN up to RM70 million was meant to finance the variation order and the corresponding professional fees for the additional development works. Furthermore, ADW2 also specified that the interest rate is now being raised from 5% per annum to 7.5% per annum.
The total amount raised so far by Special Port Vehicle Bhd (RM1.31 billion), Transshipment Megahub Bhd (RM1.42 billion), Valid Ventures Bhd (RM545 million) and Free Zone Capital Bhd (RM410 million) amounts to RM3.685 billion. Four bond issues, four illegal letters of support (get it?) At this stage (September 2006) the PKFZ project cost had already rose from the original RM1.8 billion (2002) to RM5.495 billion (RM3.685 billion development cost + RM1.01 billion land cost + RM800 million interest cost) and not the RM4.6 billion as reported.
In June 2007, PKA made payments of RM130 million to Special Port Vehicle Bhd and RM230 million to Transshipment Megahub Bhd after obtaining a RM4.632 billion soft loan from the Government (20 years at 4% pa). The first tranche drawdown of RM920 million was made on the same day the soft loan was approved.
In July 2007, JAFZI decided to terminate the 15-year contract to operate and manage the free trade zone effective from July 18, 2007. The Ministry of Transport saw this as an opportunity to apply the blame elsewhere and put out a press release blaming JAFZI for the mismanagement. Can one believe that JAFZI (the company that also manages Port of Kalang at the ultra-successful 11,860 acres Jebel Ali Free Zone at Dubai) could have been capable of the alleged “mismanagement” if PKA had been actively involved in the overall control of PKFZ? JAFZI’s reason for terminating the agreement was that they have a disagreement on how to manage the PKFZ with PKA.
On 6 September 2007, PKA general manager Datin Paduka OC Phang and officials from the Transport Ministry appeared before the Public Accounts Committee (PAC) but PAC chairman Datuk Shahrir Abdul Samad was not satisfied with answers pertaining to the project’s financing. PAC investigators revisited PKFZ on 18 October but left with more questions than answers.
On 3 October 2007, PKA appointed QS4 (a consortium of quantity surveyors) to provide consultancy services with regards to the work done in accordance to agreements ADW1, ADW2 and NADW. The professional fees? Another RM5.04 million.
In November 2007, Transport Minister Chan Kong Choy dismisses suggestions that the RM4.6 million government soft loan is a bailout, saying that it would be paid back as the lifespan of the free trade zone is about 50 to 60 years. (The repayment schedule exhibited a time frame from 2010 until 2036, and not the 20-year loan as specified by OTK.)
Then came the Political Tsunami in 2008 and the MCA hierarchy was in dire straits. Chan Kong Choy had earlier stepped down as a candidate for the federal elections stating ill health. Party president Ong Ka Ting declined to be a minister and Umno blamed MCA for the bad election results. From this morass came OTK as the new MCA President who had made a solemn promise to “tell all”.
On 5 May 2008, Datuk Lee Hwa Beng took over as the new PKA chairman from Dato’ Chor Chee Heung and Lim Thean Shiang took over from OC Phang as PKA general manager and executive chairman of PKFZ on 6 June 2008.
Then came the damning PwC report which revealed mismanagement, clandestine deals, conflicts of interest and a total disregard for transparency and accountability for a project which was supposed to cost RM1.845 billion but ended up at RM12.5 billion. From here on, blame was dished out arbitrarily like candies on a Halloween night. It was OTK in the one corner against Tiong on the opposite corner of the ring. A copy of the PwC report was also forwarded to MACC.
Datuk Lee and Mr Lim then proceeded to scrutinize the contracts against work completed and came out with their version of the scandal. They named five parties involved in the conspiracy to defraud PKA and PKFZ. They are (1) KDSB, (2) Datuk Seri Tiong, (3) Datin Paduka OC Phang, (4) BTA Architect and (5) Bernard Tan Seng Swee (consultant for development work).
Amongst the alleged unsubstantiated claims (amounting to RM1.5 billion) include:
1. Procurement of Performance Bond and insurance Premiums which KDSB was not entitled to claim - RM5,016,000.
2. Monsoon drain works and water supply works which KDSB was not entitled to claim under DA3 - RM254,850,000.
3. Over claiming of professional fees based on Public Works Department (JKR) Standard Form of Agreement For Consultancy Services Between Contractor And Consultants For Design & Build Contract - RM76,056,101.08.
4. Physical Construction of the electrical infrastructure for 33kv system works which had yet to commence - RM55,767,000.
5. Over claiming for the hotels works - RM24,934,244.14
6. Variation works claim which KDSB was not entitled to as the procedural requirement under the additional development works (ADW) has not been complied with - RM62,189,000.
7. Providing 33kv supply to Precinct 2 and 8 and the civil and infrastructure work to Main Intake Station which had yet to be carried out - RM83,000,000.
8. Cost difference from re-measurement by JUBC Sdn Bhd of the Office Blocks and Light Industries Units - RM93,000,000.
9. Failure to make contributions to authorities for the basic infrastructure works as required under Land Agreement 1 - RM2,249,742.29
Datin Paduka OC Phang was also reproached for:
1. Failing to consider PKA's ability to self-finance the purchase of the land and continuing to enter into significant and expensive development contracts with KDSB on November 30, 2005 and April 26, 2006 totaling RM1.055 billion.
2. Failing to consider that the special value of RM25 psf had included interest, instead of RM25 psf on a deferred basis with further or additional interest of 7.5%.
3. Refusing to heed the advice of her officers and other professionals, to appoint quantity surveyors for DA3, ADW1 and NADW delaying the appointment of the quantity surveyors and thereafter limiting and restricting their role;
4. Insisting that Perunding BE Sdn Bhd be appointed as the sole quantity surveyor with the knowledge that the firm had a conflict of interest, having been engaged by KDSB and/or its subcontractor for the same Project;
5. And, generally, in making unilateral decisions without the approval of the PKA members.
The relationship between OTK and Tiong soured after the latter alleged that he had contributed RM10 million in cash (in 3 separate contributions) to MCA in 2007 via OTK, a fact vehemently refuted by OTK and MCA. MCA treasurer Tan Sri Tee Hock Seng told reporters that MCA had not received any donations from Tiong since he became party treasurer last year. The “free” jet setting life of OTK just went up in smoke.
And then came the allegations by OTK that Datuk Tiong was conspiring with sacked MCA VP Chua Soi Lek to topple him as MCA President and to conceal the PKFZ scandal (or rather to perform damage control on it). It was also alleged that Datuk Tiong was in fact the numero uno taiko of the Hua Kiew Road Gang and that the underworld has already put a price on OTK’s head (which explains why PDRM assigned two UTK bodyguards to protect him). Furthermore, it was alleged that Tiong was bankrolling Chua to the tune of RM100 million “to get things done”.
On 18 August 2009 MACC announced that they will assign a 30 member panel to probe the PKFZ scandal. The PDRM subsequently froze the accounts held by KDSB with funds of roughly RM140 million, pending their own investigations into the scandal. Tiong has been interviewed by MACC investigators twice (at his air-conditioned office as opposed to Teoh’s treatment at MACC offices) since.
On 9 September 2009 the Cabinet sat down to discuss a confidential report of the PKFZ prepared by a government-appointed task force headed by senior Malaysian lawyer Vinayak Pradhan, a report that singled out former Transport Minister Chan Kong Choy; OC Phang, Tiong King Sing and the board directors of the port agency, for not carrying out their duties with adequate care.
Will this confidential report be released to the public? The saga continues.
* The real purchase price of the 999.5-acre project land was estimated at RM1.81 billion (inclusive of the 7.5% interest) and not RM1.09 billion.
* Only the Ministry of Finance is legally authorised to issue Letters of Support.
* Jabatan Penilaian dan Perkhidmatan Harta, Kementerian Kewangan valued the land at the market values of RM17 psf (November 1998) and RM18 psf (May 2000) with access road and infrastructure. (RM13.50 without access road and infrastructure.)
* Agreement DA3 specified a RM1.303 billion project (including interest at 7.5%) but has ballooned to RM1.85 billion. KDSB claimed professional fees of RM121.592 million, an item not specified in the DA3 agreement.
* PKA’s cash flow projections show that PKFZ is expected to be in cash deficit from 2012 and will not be in the black again until 2042. This projection was prepared by PKA and PKFZ on the assumption that PKFZ will achieve full tenancy by 2018. PwC did not perform an audit on it because it was not included in the specified terms of reference.
* Both Tiong and Chua denied the conspiracy allegations made by OTK.
* Under the government’s general orders, a civil servant is not allowed the use of the jets.
* While the PwC report and subsequent findings by the new PKA management named many individuals, none has been charged with a crime so far.
* So far, the PM and DPM have not publicly given their support to OTK. Datuk Tiong is rumoured to be “close” to the PM. Malaysiatoday.... (http://mt.m2day.org/2008/content/view/26733/84/)
12th September 2009, 05:10 PM
No two ways about it. This is a desperate attempt to cover up. Not so fast, Jibby. Someone has to pay.
In a spin over task forces
Updated: 01:20AM Fri, 11 Sep 2009
IT STARTED with the Public Accounts Committee (PAC) and included site visits
and recent disclosures of its chairman Datuk Seri Azmi Khalid of the
incompetence and cavalier approach the management of the Port Klang
Authority (PKA) had towards public funds and the public trust in the
implementation of the Port Klang Free Zone (PKFZ).
Then the Audit Committee comprising accountants from PricewaterhouseCoopers
(PwC) was commissioned to investigate claims of irregularities in the
conception of the free zone.
There was the Special Task Force set up in June to recommend to the PKA how
to rectify the wrongs and initiate legal action in respect of the findings
revealed in the audit report.
Concurrently, there was the corporate governance committee, an ambit of the
Special Task Force, charged with implementing long-term control mechanisms
to ensure the PKA board and management adhere to the rules of good
Alongside this committee was yet another executive committee which looked
into reviving the PKFZ project and to make it viable.
In the midst of all this, the Malaysian Anti-Corruption Commission (MACC)
had established its own 30-member Task Force, while Bukit Aman's Commercial
Crimes Division had also set up a team to investigate the fiasco.
The Special Task Force report which was tabled in the cabinet on Wednesday
had damning findings on alleged conspiracy between the management of the PKA
and contractors involved in the project, as well as evidence of alleged
dereliction of duties of former PKA general manager Datin Paduka O.C. Phang
and alleged breach of procedures by former transport minister Tan Sri Chan
Kong Choy which contributed to the escalating cost of the project from an
initial RM2 billion to what, according to PwC, could be RM12.5 billion.
In an interview with theSun published yesterday, Transport Minister Datuk
Seri Ong Tee Keat stressed that it was important to the nation how the saga
concludes - that those responsible for the colossal losses are made
accountable, along with exploring proposals to salvage the project.
Thus, just when Malaysians were getting ready to see the culmination of the
PKFZ affair into prosecutions of high-powered individuals, the
administration drops a bombshell - by forming another task force, this time
a "super" task force to look into good governance and reviving the project.
Having followed the PKFZ story for the last five over years, one understands
the intricacies involved - mind you, billions of ringgit of public money is
With so many hands at work, from as far back as 1995 when land was first
acquired, it is important to ensure no culprit slips through the cracks and
everyone involved is made to account - irrespective of the magnitude of
So it is important that the investigators go through all the paperwork with
a fine-toothed comb, and this PwC did a fine job.
But seriously, and no disrespect to Chief Secretary to the Government Tan
Sri Mohd Sidek Hassan and his team, what more could one demand of the probe
into the PKFZ issue? What more can Mohd Sidek and Treasury secretary-general
Tan Sri Dr Wan Abdul Aziz Wan Abdullah uncover that the Special Task Force
has not already?
After all, the terms of reference of the Super Task Force is identical to
that of the Special Task Force: to identify elements of abuse of power; to
point out areas where there was non-adherence to the principles of good
governance and to come up with proposals to revive the project, save money
and recoup losses.
Hasn't the Special Task Force made up of lawyers and accountants and other
experts already made its findings known to the cabinet?
What guarantees are there that the Transport Ministry officials involved in
the new Super Task Force are not as culpable as those implicated in the
Special Task Force report in allowing the project costs to balloon
Or is this an indication that someone or the government is not all that
convinced, or worse, do not approve of the findings of the Special Task
Force and needs a Super Task Force to corroborate the results of the
Another question is why would the Attorney-General need to be a member of
this Super Task Force to deliberate over initiating prosecutions? Wouldn't
the investigation papers of the MACC and police be sufficient for him to do
his job, as has always been the case?
The Opposition is already gaining brownie points from the public by claiming
that the setting up of this new task force is an attempt to hoodwink the
public, a cover-up or at least a stalling tactic to save the key players
One finds this claim debatable, especially with a by-election looming in the
horizon and the Barisan Nasional (BN) facing a daunting task in regaining
lost ground among the hearts and minds of the rakyat.
It wouldn't want to sink all it has regained since March 8, 2008 by pulling
the covers over PKFZ, now would it?
But one thing for sure is that pussyfooting around this matter is not going
to convince the people that this is a government that acts without fear or
favour, and will just add salt and pepper to the theories already spreading
on the blogosphere of how the PKFZ saga will end.
Terence is disappointed with the display of foot-dragging and wants to see
action now. He is deputy editor special reports & investigations. Feedback:
19th September 2009, 10:26 PM
Latest twist in PKFZ forces PM into damage-control
Saturday, 19 September 2009
PUTRAJAYA - The RM12.5 billion Port Klang Free Zone financial debacle took a fresh twist after news leaked alleging that the cabinet had been kept apprised of the massive cost over-runs and may have thereby even given its tacit approval.
The shocking revelation has forced Prime Minister Najib Abdul Razak into damage control mode. He has ordered the police to immediately investigate the security lapse.
"Anyone who exposes cabinet papers will be subjected to police investigations and action under the Official Secrets Act will depend on the investigations," Najib told reporters late on Friday.
Meanwhile, Deputy Inspector-General of Police Ismail Omar confirmed a probe has begun.
“We are investigating to find out who is responsible for exposing information on the cabinet paper,” he said.
RPK strikes again
Earlier this week, copies of an 18-page memorandum submitted by the Finance Ministry to the cabinet made the rounds in cyberspace after top anti-government blogger Raja Petra Kamarudin exposed the document on his website.
The crux of the memorandum was to seek the cabinet’s retrospective endorsement for a RM4.6 billion government loan to cover the huge over-expenditure in the PKFZ project, which originally was due to cost only RM1.8 billion.
Coincidentally, Raja Petra’s blog has been blocked the past couple of days, with regulator Malaysian Communications and Multimedia Commission refusing to comment when asked if it had been instructed to do so.
“Has it anything to do with the RM12.5 billion PKFZ documents including cabinet papers, onbillion Port the website in the past three days?,” asked opposition stalwart Lim Kit Siang.
PKFZ is an integrated 1,000 acre commercial and industrial zone located adjacent to the national gateway and transhipment hub in Port Klang.
It is the government’s largest port investment ever. However due to massive cost overruns that independent auditors have blamed on weak governance and questionable practice, the original development budget has ballooned multiple folds and and could hit RM12.5 billion if funding undertaken for the project is not revamped soon.
Said Kit Siang: “The time has come for the Prime Minister Najib to honour his pledge of public accountability, transparency, integrity and good governance which must include a commitment to freedom of information and respecting the right of Malaysians to information about the entire process as to how Malaysia could be landed with a RM12.5 billion PKFZ scandal through three prime ministers, three transport ministers and four Port Klang Authority chairmen.” MalaysianMirror.... (http://www.malaysianmirror.com/homedetail/45-home/12524-latest-twist-in-pkfz-forces-pm-into-damage-control)
11th October 2009, 10:53 AM
[size=14pt]Now that Ong Tee Keat has lost the vote of confidence as President of the MCA, does it mean that the PKFZ will be swept under the carpet?
Ong loses confidence vote, MCA in chaos
By Lee Wei Lian and Clara Chooi
KUALA LUMPUR, Oct 10 — After a dramatic recount, MCA delegates passed a no confidence vote against party president Datuk Seri Ong Tee Keat by a wafer-thin 14 vote majority, and also overturned the suspension of Datuk Seri Dr Chua Soi Lek.
But it appears the party has been thrown into chaos because delegates also defeated a motion to specifically reinstate Dr Chua as deputy president.
Party secretary-general Wong Foon Meng told reporters that this meant Dr Chua would be reinstated as an ordinary member but not as deputy president.
Dr Chua said in a short statement on his blog that he accepted the decision of party delegates.
Ong was evasive when asked if he would resign after losing the confidence vote.
"You cannot simply don't follow what I say," he answered in cryptic fashion to a question of whether he was resigning. TheMalaysiaInsider.... (http://www.themalaysianinsider.com/index.php/malaysia/40012-ong-loses-confidence-vote-mca-in-chaos)size
11th October 2009, 02:22 PM
Does it take it that the PR do not know what to do with the pkfz scandal and rely solely on the effort of otk.Anwar is all talk and hotair.Pas should take the lead by having a 'bersih' style march with 500,000 marchers if bn do not come clean with pkfz.Afterall who do not know how to talk and not walk.
11th October 2009, 08:28 PM
As long as the present gomen is in office, PKFZ is NFA. Even worse now the OTK driver is OKU.
15th October 2009, 11:45 PM
PKFZ scandal keeps investigative reporting alive
Posted by admin
Thursday, 15 October 2009 07:08
It’s publication day today for Citizen Nades (R. Nadeswaran) of The Sun and the book that he and his sidekick Terence Fernandez have put together on the Port Klang Financial Disaster Zone debacle.
Alone in the desolate wilderness of Barisan Nasional’s thought controlled journalism, the pair have over the years chased down countless leads and looked under rocks in their pursuit of fascinating stories.
In the process they’ve put Klang and Port Klang firmly in the political consciousness of Malaysians, first for the story of the infamous Istana Zakaria, the palatial mansion of a one-time town councillor, and now for the Port Klang Financial Disaster Zone. Malaysiatoday.... (http://mt.m2day.org/2008/content/view/27816/84/)
18th October 2009, 11:37 AM
5th November 2009, 08:06 PM
Five things from the PAC PKFZ report
KUALA LUMPUR, Nov 5 — The 28-page report by the Public Accounts Committee (PAC) into the Port Klang Free Zone (PKFZ) scandal that was tabled in Parliament yesterday is an education tool for all Malaysians.
In fact, it should be required reading for all Malaysians, for it lifts the veil of secrecy surrounding the government and this scandal of all ages; and it tells us much about our leaders and the workings of the Cabinet.
Here are the five things learnt from the report.
1) Veteran Opposition leader Lim Kit Siang is prone to occasional bouts of hyperbole but he is spot on when he accuses the country’s top leadership of collusion in the PKFZ scandal and of being great actors.
More than 80 per cent of the current Cabinet knew of the problems related to the PKFZ long before the rest of the country got a whiff of the stench of wrongdoing, negligence, and incompetence. They knew that former Transport Minister Datuk Seri Chan Kong Choy overstepped the boundaries by issuing three letters of support to facilitate fund-raising for the project.
Sure, he argued strenuously that the letters only amounted to letters of support but the Cabinet knew better. The ministers knew that the letters amounted to a government guarantee.
The Cabinet knew that the government had overpaid for the PKFZ land. It also knew procedures were overlooked and laws broken and in June 2007, even recommended that action be taken against guilty parties.
So the country’s top leadership cannot feign ignorance or exhibit any surprise at the disclosures made in the PAC report.
They knew all along. They were just counting on the PKFZ scandal to go away, just like all the other scandals in the country.
2) Let’s just say that we would not want any of the main actors in the PKFZ scandal to be in the trenches with us when the going gets tough.
Ministers, senior civil servants and other officials were either afflicted with the “he did it or she did it’’ virus or were hit with a sudden case of amnesia when they gave evidence before the PAC.
Former Port Klang Authority chairman Datuk Seri Dr Ting Chew Peh said “I don’t remember’’ to many questions from the PAC and passed the buck when asked about the implementation of the project.
“We were informed of the project, but I can’t remember. In our view, the project was actually an order from the minister and also from the cabinet, ‘‘ said the former minister.
3) Er, they may hold some of the top positions in the country but this is no warranty of quality. Nothing demonstrates this fact more clearly than Chan’s exchange with the PAC when he was asked on the letters of support he issued to two rating agencies in the country.
He was told that he had issued one of the letters to Malaysia Rating Corporation Bhd (MARC), instead of Rating Agency Malaysia.
Chan said that he had issued the letters to MRCB, the listed government-linked company. The PAC found out that the letters were sent to MRCB but the bond rating was provided by RAM.
4) Where is the Anti-Corruption Agency (ACA), Royal Malaysian Police and the Malaysian Anti-Corruption Commission (MACC) when we need you?
Hate to belabour this point but why is it that the ACA and its successor, the more powerful MACC only seems capable of handling small corruption cases, those say involving between RM2,000 and RM50,000?
The PKFZ scandal is the mother lode of scandals. It involves billions of ringgit, implicates ministers, senior politicians and everyone from the roti canai man to the fish monger know all the facts of the case by rote and yet Malaysia’s graft busters are still investigating.
Remember, the red flags surrounding the project were raised in mid-2007. Remember also that the PAC report is the third probe into the scandal.
All three reports have uncovered acts of wrongdoing. Yet, we have yet to see anyone being led into the courtroom with handcuffs.
5) Umno politicians have been tagged as the most corrupt and arrogant around and some of their most trenchant critics have come from the MCA.
But now the MCA will have to eat humble pie. The main actors in the country’s biggest scandal in decades are members of the Malaysian Chinese Association.
Can they even contemplate pointing fingers at Umno again? Can their politicians take the high road again? TheMalaysiaInsider.... (http://www3.themalaysianinsider.com/lite/articles.php?id=42449)
9th December 2009, 10:46 PM
Tuesday, December 08, 2009
Ong to Exit – 1Corruption, Together We Prosper
It’s easier to move a mountain than to change a person’s character – goes a Chinese saying. By the same logic, it is definitely many times harder to change the Malaysian ruling government’s policy of worshipping corruption. Whatever the result from the PKFZ multi-billion scandal, you can kiss your money (yes, part of the billions of dollars belong to you) goodbye simply because you won’t be able to see it again. And you can bet your last dollar that MCA Pesident Ong Tee Kiat would see his political career end very soon. Stocktube. (http://stocktube.blogspot.com/2009/12/ong-to-exit-1corruption-together-we.html)
29th June 2010, 04:58 PM
This is Najib's answer to the people's unhappiness over the PKFZ scandal.
Chor made full minister despite ‘role’ in PKFZ
By Clara Chooi
June 01, 2010
KUALA LUMPUR, June 1 — Datuk Wira Chor Chee Heung was today named the Housing and Local Government Minister despite being among the politicians who came under fire during the Port Klang Free Zone (PKFZ) saga. TheMalaysiaInsider.... (http://www.themalaysianinsider.com/malaysia/article/chor-made-full-minister-despite-role-in-pkfz/)
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