RM4.6b PKFZ scandal:Why Pak Lah breaking another pledge – no mega bailouts?

The Prime Minister, Datuk Seri Abdullah Ahmad Badawi has said that he would ask the Transport Minister, Datuk Chan Kong Choy to explain why concerns by Jebel Ali Free Zone (Jafza) addressed to Chan over the progress of the Port Klang Free Zone (PKFZ) were not entertained.

This was his response to the Sun’s front-page report yesterday that Jafza pulled out of the PKFZ deal because of political interference, bureaucracy and breaches of the management agreement signed between Jafza and the Port Klang Authority (PKA).

Jafza executive chairman Sultan Ahmad Sulayem and its senior vice president (international operations) Chuck Heath wrote to Chan on March 11 and May 29 last year respectively but received no replies.

Chan must not only explain his role in the pull-out of Zafza from PKFZ, the Transport Minister must publicly explain and account for the RM4.6 billion PKFZ scandal, now leading to a RM4.6 billion government bail-out of the project when the originally RM1.1 billion PKFZ had started as a “feasible and self-financing” project which would not require a single sen of public funds.

Yesterday, when addressing some 1,200 delegates including ministers, menteris besar and chief ministers attending the National Asset and Facility Management Convention, Abdullah said action should be taken against those in the public sector who were responsible for maintaining public buildings when public buildings fall apart.

Let Abdullah start off this culture of responsibility with the RM4.6 billion PKFZ scandal, and bring to book all public officials, from Cabinet level downwards, who were responsible for the RM4.6 billion PKFZ scandal — or is this going to be a repeat of a bigger RM2.5 billion Bumiputra Finance Scandal more than 20 years ago of “a heinous crime without criminals”?

If Chan as Transport Minister must bear full responsibility for the RM4.6 billion PKFZ scandal, then an example must be made with his resignation or removal from Cabinet — as otherwise, all the talk about public accountability and responsibility under the Abdullah administration are just hot air without credibility.

In this case of the RM4.6 billion PKFZ scandal, Abdullah himself must explain why he is breaking another pledge when he became Prime Minister of no mega-billion-ringgit bailouts.

Unless and until a powerful public case could be made as to why Abdullah should start off a new cycle of mega-billion-ringgit bails-outs, the Prime Minister must remove the Whip in Parliament and allow Members of Parliament from Barisan Nasional the freedom to reject the RM4.6 billion PKFZ bailout package when it is proposed in Parliament in the forthcoming meeting starting on August 27. This is because MPs who voted for the RM4.6 billion PKFZ bailout will be assuming full personal responsibility for the scandal as well.

41 Replies to “RM4.6b PKFZ scandal:Why Pak Lah breaking another pledge – no mega bailouts?”

  1. AAB’s “request” to Chan Kong Choy for an explanation on this mess was not reported in the Star or NST. I don’t read Utusan or Berita Harian, so I won’t know, but it appears that this matter was only reported in the Sun, which is a “fringe” paper.

    There is so much sandiwara in all this – asking Chan to explain, when in fact the main beneficiary of the “missing” billions was UMNO. Azim, UMNO Treasurer, figures prominently in this mess, so why don’t you go ask Azim for an explanation ? As UMNO President, don’t tell me you don’t know what your Treasurer is doing or has done.

    Ling and Chan are the typical machais of UMNO – do as I say and I will throw you some crumbs.

    There will be no light shed on this sorry episode since it goes right to the very pockets of UMNO. The damage to the country goes beyond the billions of ringgit – foreign investors will not want to come in with this sort of behaviour at the very apex of the ruling parties. Bye bye South Johor Corridor, Northern Corridor, Sabah Corridor….

  2. YB, Go dig deaper. You will find that the RM1.1 billion approved earlier was waaaaaaaaaay overboard too! But no one was watching it. Where did the sum of RM1.1billion required for this project come from? What was the land valuation done at that time show, and how big an area does it encompass? Is the asking price justifiable? Why not get PAC to look into it?

    What a waste of people’s money!

  3. The RM 4.6 billion hole was supposed to be filled by Arab money but the Arabs have now walked away leaving the big hole a big hole. Now the con-men have been caught flat-footed. The money is gone, how to patch up the hole?

    But more importantly, the PM does not seem to know what is going on in his Ministries. How did the Transport Ministry give its support for the loans taken when it appears that they have no authority to do so? And the Finance Ministers 1 and 2 who have the authority, do not know anything about it?

    In the commercial world, this would be considered as exceeding their authority, something which might be criminal in nature and most certainly actionable in the courts just as some former bankers have been sued by the authorities and their previous employers. Chan Kong Choy and his people can be liable if they had exceeded their authority.

    But as I have said before, wouldn’t the Public Accounts Committee of Parliament want to take a look at the accounts? Wouldn’t the Auditor General be among the first to send in his people to see what the heck was going on?

    As the days go by, the people get more and more frustrated and disillusioned. We need to stop the rot quickly. We need a change.

  4. Definately need a change…..but who gets the message out to the rakyat in the kampungs? Thats where this battle will be won! Even if all the cities throw out BN, BN will still win with sufficient majority.

    How saaaad for malaysia!

  5. When he first came onboard he said that he doesn’t believe in mega projects and proceed to scrap off some of the ones TDM intended to do.
    Now he has even beaten TDM to it. Within 4 years , he is now going to further more development thro
    (1)Ya-Bachok Pipeline
    (2)Southern Corridor
    (3)Northern Corridor
    (4)Eastern Corridor
    and with these,even more massive bail-outs in future running the country to the ground.These may even dwarf what Ferdinand Marcos did to Philipines or what President Suharto did to Indonesia.

  6. if BN wins next election because of the kampung, confirmed la
    UMNO jaguh kampung..
    i have a strong feeling, the urbanites are gonna kick UMNO’s arse
    this time.
    speaking from a kl-lite, we can retain kepong, cheras, seputeh, bkt bintang, close fight in pantai and hopefully no magical ballot boxes this round, putrajaya long gone case.. (civil servants no choice but to vote BN) segambut is the main area. if we can get segambut, it will be a small victory.
    penang, ipoh, taiping, seremban, malacca, johor bahru, kuantan, pj, sunway, puchong, kuching, sandakan, kota kinabalu, miri…
    come on guys , these are the areas that are urban, we gotta make it known that we have had enough of BN crap, racism and corruption

  7. A grip on power is a grip on money – the country’s coffers : who would give it up or tolerate threats whether from bloggers or civil society or opposition? Money can buy votes too if you think the ballot box is the solution.

    Things may change if the source of money is hit by some cataclysmic event – like some big equity and property market crash induced by burst of any one or several of the major bubbles around whether commodity (oil) bubble, derivative/credit bubble leading to a world wide recession and asset deflation which the Sedition Act, ISA and OSA can neither address or contain….and a “sleepy” leadership will only aggravate than mitigate. :) Then it will be interesting to see what happens here, how it will affect wealth stolen by our politicians, inefficient industries and business ventures propped out by them. Thing may have to get much worse for everyone before they get better. We may not have to wait very long. The recent cracks in sub-prime bubble is one corner of the credit bubble that may spread.

  8. I think the Chinese are quite aware and uptodate on this sorry state of affairs, but the question remains – what are the Malays going to do about it ? What is PKR going to do about it ? Organise a demonstration ? What is PAS going to do about it ? Talk about it at Friday prayers all over the country ?

    It is all about the dissemination of information. Notice that the mainstream press, like an obedient dog, won’t say anything about it, so it is imperative that the Opposition parties throw everything they can at this matter so that it does not get swept under the carpet.

  9. My friend just shared with me a story a Pakistani guy told him yesterday.

    He works as an agent bringing in foreign labor. He said that now it is so easy to bring in workers compared to TDM’s time. EVerything can be settled with “money”. They can even erase your data. Basically, this guy is also frustrated at how things are moving in Malaysia and he said ,”under Pak Lah your country is doomed!” And this came from a Pakistani.

  10. “Jafza executive chairman Sultan Ahmad Sulayem and its senior vice president (international operations) Chuck Heath wrote to Chan on March 11 and May 29 last year respectively but received no replies.”

    Yikes!!!.. Aiyaaaah….17 months and 15 months to reply to 2 measly letters!

    Hello, Kong Choy, you are a disgrace to Malaysia and Malaysians, especially Malaysian Chinese and MCA!

    Better to resign NOW! Can’t even do simple job properly! How can you represent Malaysians and Malaysian Chinese, in particular.

  11. Privatisation and Piratisation of Projects – Guaranteed Profits in 3 Easy Steps

    1) Set up a RM2 shell company to undertake multi-million and multi-billion ringgit projects. With all the terms and conditions favourable to the company, making profits should be a piece of cake. If the project turn in huge profits, the cronies will be hailed as successful entrepreneurs.

    2) If the project is aborted half way, the compensations will be more than the profits anyway.

    3) If the project flops, there will always be the bailouts. In any case, the cronies would have already made their “profits” upfront.

    So, how not to make money the quick and easy way?

  12. “Yesterday, when addressing some 1,200 delegates including ministers, menteris besar and chief ministers attending the National Asset and Facility Management Convention, Abdullah said action should be taken against those in the public sector who were responsible for maintaining public buildings when public buildings fall apart.”

    So far AAB’s weekly sermons have hit no heart or changed any mindset. Civil servants are still just as lazy and corrupt despite the salary increase and shorter work week. UMNO, MCA MIC Politicians are still the greatest hypocrites, the “Cakap tak serupa bikin” type.

    No wonder Pak Lah is shifting the goal posts to 2057 ….so that he won’t be accountable; he won’t be around and God knows who will be accountable then?So any BN MP can just say ‘wait, the wawasan is 2057’. BN needs more time just like the NEP, begun in 1969…., now almost 40 years later, UMNO is screaming that it should go on probably for another 50 years…..probably till 2057 too and thereafter be renewed for a further 50 years probably!

    This is a nation of probables and probabilities. Nobody knows what is going on or where we are heading. Probably we are heading for hell…probably not. Probably, the PM knows but most probably NOT. If the PM probably knows not (or nothing) then probably the rest of the nation knows nots (or nuts) or probably nothing!

  13. > Godfather Says:
    > August 14th, 2007 at 15: 21.38
    >
    > AAB’s “request” to Chan Kong Choy for an explanation on > this mess was not reported in the Star or NST

    Minor correction: The Star had the request. Not on page 1, though, rather at the end of the article on page 2:
    “On information that Jafza had corresponded with Transport Minister Datuk Seri Chan Kong Choy on the problems, Abdullah said he would ask Chan what was happening.”

    That’s it, probably. He’ll ask, he’ll get an answer, each will pad each other’s back, and the matter is forgotten.

  14. With this PKFZ scandal unfolding, expect our FDI continues to drop. You also can be sure Abdullah’s corridors will never take off, plus many more scandals coming our way, guaranteed. I agree with Jefrrey, we don’t have to wait long. The market forces will crash Malaysia soon.

  15. Digard:

    I stand corrected. Thank you.

    AAB’s next reply to questions will be “I have asked and am waiting for an explanation. Be patient.” Next reply will be “It is a project of national importance.” The final reply will be “Saya tak tahu. Pergilah tanya Menteri Pengangkutan”

  16. Uncle LIm,
    May i suggest that each YB be given a yearly honorium of RM50mm each, this will be cheaper than bailing out failed projects and enough incentives to thwart corruptions. Much much cheaper alternative.

  17. beware, small fries, blame will be on you, this is the master that you seek to protect and serve, rather than the king and rakyat, you’ve your 40% pay rise from them and now you can take their blame.

    beware, small fries, this administration cares not for you, vote oppositions.

    be wise, be warn. that goes for you cyber-scum too.

  18. Seems like the politicians and the government is thumping their noses at us, people!

    May i suggest a non-violent protest to show our disgust.

    Let’s all gather together (with our Form B) and burn it all in public as a sign of protest. After all, I don’t see no reason why we should be paying taxes to support such bail-outs.

    Think it work? Feedback please…..

  19. Had the past administration of 22 years done a good job in ensuring all sound fundamentals in administration are in place with proper check and balance, like S’pore or any advanced countries, we would not have so many problems.

    Decades of bad leadership and governance of the country are starting to affect the country and her ordinary people.

  20. Transport Minister must also explain why the driver who caused the nasty accident is allowed to drive despite so many summonses. Who is the company who hired him anyway? Did they pay off someone from the ministry to close one eye? Corruption is not only destroying our beloved country but also killing innocent men, women and children. Don’t the Minister have any conscience left or has it been obscured by money.

    PKFZ is the worst case of plundering in Malaysia. The project has only a few buildings and to my knowledge only one foreign investor has built a factory over there. How on earth can this project costs RM4 billion?!!! Would the other recently announced corridors follow suit. If that is the case, at least 30% of the country’s GDP would have gone down the drain. This will cause a domino effect on our country’s reserves as these monies will not remain in Malaysia. Like in most cases, it would be siphoned off somewhere else.

    Marcos and Thaksin are angels by comparison?!!!

  21. http://malaysia-today.net/blog2006/corridors.php?itemid=7239
    …the Rulers have summoned the Prime Minister like a school headmaster summoning a naughty schoolboy for breaching some school rule or another. But will the ‘headmaster’ merely scold his student who goes by the name of Abdullah Ahmad Badawi? Or will the student be told to write 1,000 lines “I will not do this again”? Or will the student face caning instead? Of course, if the crime committed is serious enough, the headmaster can always sack the student. And yes, the Federal Constitution of Malaysia does have provisions for someone who has misbehaved to face sacking.

  22. Besides sending all these corrupted criminals to the firing squads there is one more thing we can learn from China. Subcontract major national project to Singapore to implement and then profit share. If Malaysia Garment feels more greedy let the Singapore garment take majority stake first then about to finish make things difficult just like the CLOB share debacle the last time. They sure give in one because ‘take it or leave it tactic’ (ablastine tactic) is very powerful and effective.Suzhou also like that what. So after a few round of golf in KL our leaders can take back majority share but still let them run the place lah. Never never let Malaysian politician touch the place because of corruption, corruption and corruption or it will end up like all previous Malaysia National Project – fail big time. Ai yah you think who Singapore will send to do the project. Malaysian or former Malaysian also mah. Where got rugi one we all. What the usual shit about sellling sovereignty to Singapore. Singapore Orchard Road selling a square feet of space in the sky for more than $5000 to foreigners of unknown origin also never complain, we want to complain about share share make money deal involving jungle land. Furthermore they use their money to build on Malaysia land and leave things to our mercy after that. What so dangerous about this. Where got meaning one this complain. Stupid only lah.

    [deleted]

  23. 5 year old Bobby came into the kitchen where his mother was making dinner. His birthday was coming up and he thought this was a good time to tell his mother what he wanted. “Mom, I want a bike for my birthday.”

    Now, little Bobby was a bit of a troublemaker. He had gotten into trouble at kindergarten and at home. Bobby’s mother asked him if he thought he deserved to get a bike for his birthday. Little Bobby, of course, thought he did. Bobby’s mother, being a Christian woman, wanted Bobby to reflect on his behavior over the last year. “Go to your room, Bobby, and think about how you have behaved this year. Then write a letter to God and tell him why you deserve a bike for your birthday.”

    Little Bobby stomped up the steps to his room and sat down to write God a letter.
    Dear God,
    I have been a very good boy this year and I would like a bike for my birthday. I want a red one.
    Your friend,
    Bobby.

    Bobby knew that this wasn’t true. He had not been a very good boy this year, so he tore up the letter and started over.
    Dear God,
    This is your friend Bobby. I have been a good boy this year and I would like a red bike for my birthday.
    Thank you.
    Your friend,
    Bobby.

    Bobby knew that this wasn’t true either. So, he tore up the letter and started again.
    Dear God,
    I have been an “OK “boy this year. I still would really like a bike for my birthday.
    Your Bobby

    Bobby knew he could not send this letter to God either. So, Bobby wrote a fourth letter.
    Dear God,
    I know I haven’t been a good boy this year. I am very sorry. I will be a good boy if you just send me a bike for my birthday. Please!
    Thank you,
    Bobby

    Bobby knew, even if it was true, this letter was not going to get him a bike. Now, Bobby was very upset. He went downstairs and told his mom that he wanted to go to church. Bobby’s mother thought her plan had worked, as Bobby looked very sad. “Just be home in time for dinner,” she told him.

    Bobby walked down the street to the church on the corner. Little Bobby went into the church and up to the altar. He looked around to see if anyone was there. Bobby bent down and picked up a statue of the Virgin Mary. He slipped the statue under his shirt and ran out of the church, down the street, into the house, and up to his room. He shut the door to his room and sat down with a piece of paper and a pen. Bobby began to write his letter to God.
    God,
    I’VE GOT YOUR MAMA. IF YOU WANT TO SEE HER AGAIN, SEND THE BIKE!
    Signed,
    YOU KNOW WHO.

    Moral of the story: Some people will turn to desperate acts to get what they want

  24. Hear, hear from the world’s greatest economist, the one who caused the country’s biggest forex losses
    http://www.btimes.com.my/Current_News/BT/Wednesday/Frontpage/bailout.xml/Article/index_html
    “But sometimes we put money in to create confidence for the overall economy, and we will do that,” Second Finance Minister Tan Sri Nor Mohamed Yakcop told reporters in an interview yesterday. However, he declined to comment on media reports that the Government had already approved a RM4.6 billion soft loan for the PKA’s Port Klang Free Zone (PKFZ) facility in Pulau Indah.

  25. “Can you find a worse Gomen than this….Gomen on earth?”.Mendela.
    …………………………………………………………….
    Hello,hello, brother it depends who you ask,really.If you that guy RealWorld, he’ll say”This Gomen is cemerlang,gemilang and terbilang, only sometimes it makes some silly mistake what.Isn’t it human,meh?”

  26. The bailout has been decided at a previous cabinet meeting, when Badawi was absent due to his unannounced holiday in Australia. He therefore is entitled to say “saya tak tahu, saya harus tanya Chan Kong Choy”.

    Of course it begs the questions of (a) whether he reads the minutes of cabinet meetings (b) whether he understands the minutes of cabinet meetings and (c) whether he falls asleep while reading the minutes of cabinet meetings.

  27. This will be pushed through despite public objections, just like everything else in Bolehland. TDM has to bear his share of the blame, because this method of political party funding was rampant during his time, and with this new administration, is now out of control. Sadly, where the beneficiaries are UMNO and MCA, the crooks will never get behind bars.

    Undergrad2 is right – God help us all in Bolehland.

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