By Shannon Teoh | The Malaysian Insider
PORT KLANG, May 29 — The DAP wants the government to cut its losses in Port Klang Free Zone (PKFZ) that faces at least RM8.6 billion in future losses and have asked it to close shop, even if it means declaring the Port Klang Authority (PKA) bankrupt.
After a team led by its parliamentary leader Lim Kit Siang had spent four hours at the PKA headquarters perusing the full report on the RM7.5 billion already spent, they concluded that the government should “bite the bullet and end the project, even if it means declaring PKA bankrupt.”
Party information chief Tony Pua explained that if the statutory body liquidated its assets, it could reduce losses to around RM3 billion from the RM4.6 billion already sunk in by the Treasury.
According to the report by PricewaterhouseCoopers (PwC), PKA is already servicing a government loan but operating losses will see it unable to meet payments by 2012.
It will only turn around in 2042. By then, it would have racked up a cumulative loss of RM3.6 billion.
PKA will need to refinance the loan and lose RM5 billion in interest payments, resulting in a total RM8.6 billion bailout by the government.
“Even this is a best case scenario because the calculations are based on projections that PKA provided,” Pua said.
He pointed out that according to these same forecasts, PKA had expected 20 per cent occupancy in the light industrial areas today, but it currently stands at 14 per cent.
He also disclosed that the only major shipping line using Port Klang as a regional hub, CMA & CJM, was planning to move to Tanjung Pelepas in Johor, saying “expecting it to be 40 per cent in 2011 and then full occupancy in 2014 is extremely optimistic.”
Lim had earlier expressed disappointment with the report as its scope was restricted and while it named a few “middling characters,” he said “the bigger story is the top VIPs” who are “puppet masters.”
“Transport Minister Datuk Seri Ong Tee Keat had promised to tell all but knowing full well the questions posed before the report was commissioned, this is a grave injustice.
“We know it goes higher than this,” he said, adding that a royal commission of inquiry should look into the roles of those in power when the project was being conceptualised in 1999 onwards.
This includes previous transport ministers Tun Dr Ling Liong Sik and Tan Sri Chan Kong Choy as well as then Prime Minister Tun Dr Mahathir Mohamad.
“It is an astronomical rip-off. The can of worms has turned out to be a pit of crocodiles and alligators,” Lim declared.
He added that immediate action should be taken against those named in the report, including three active Barisan Nasional politicians, its backbenchers chief Datuk Seri Tiong King Sing, Deputy Finance Minister Datuk Chor Chee Heung and Sementa assemblyman Datuk Abdul Rahman Palil, who is a former Selangor state executive councillor.
He said that there was “no point” in filing a report at the Malaysian Anti-Corruption Commission (MACC) as PKA chairman Datuk Lee Hwa Beng had done this morning.
“Our Selangor executive councillor Ronnie Liu has already lodged four police and MACC reports. What have they done? In fact, Liu will later lodge a report on MACC at the MACC,” the Ipoh Timur MP added.
The party’s Selangor vice-chairman Charles Santiago called for those involved to be suspended from their positions and have their bank accounts frozen pending investigations.
The Klang MP expressed shock at the amount of wastage and believes there has been political pressure and collusion to keep the 10-year saga quiet.
“It is a colossal failure of our regulators and governance,” he said.
“Given the global and financial crisis that has hit Malaysia’s shores, RM7.5 billion is more than the government’s first stimulus package and RM12.5 billion is over one-fifth of the second package.”
Much, much, much better for BN to close shop. Then all the scandals will come to an end.
DAP and PKA can lodge as many reports as they wish to MACC. MACC will not take any action. When and where have we seen MACC, Polis and AG take any action on any BN assemblymen currently in office? All BN assemblymen are clean and honest. However, if it is the opposition, any Joe Public who lodge a complaint to MACC and/or Polis, swift action will be taken. Even our judiciary moves super fast if BN asks for it. BN can do another Lingam investigation and claimed that technically all of them are faultless but morally they are wrong or MACC will say that they have investigated and the result is pending with the AG who will sit on it and in the end our Nazi will inform Parliament that not enough evidence and NFA.
After that case is closed before the next GE so that if they lose, the future Govt cannot pursue anymore. Semua-nya ok in the end
The interest costs id running by the seconds, by the minutes, by days and it is going to suck deep into the tax payer pockets.
The only solution is to get enough tenant ? But can this be done? After all this project was not mean for what it mean to be it was an evil conceptualized project for the evil motive to milk and feed the cronies? Close shop and let it go burst is one of the best solutiion at this moment, instead of let the costs running forever and never ending.
At the same time cal in NV to do its feasibility study to convert the project to private cemetery? Put the ghost town ship into the ghost lasting place once and for all.
When Ong Tee Keat, known for his outspokenness and Lone Ranger style prior to assuming top leadership in MCA, renegaded on his pledge that he will make everything and anything public with regards to PKFTZ, I already sense that this goes way way to the very top.
It is curious to see why the ex and current PMs have not spoken frequently about this matter.
The billions wasted could have been used to eradicate poverty in all Malaysia and still have spare changes for other stuff. This is the BN administration whose election rallying call is that only they can bring progress and have experience in administration.
By contrast, given the limited resources controlled by Pakatan Rakyat states, we have seen so many people friendly programmes and projects such as Tawas, tuition class, Mesra Usia Emas, land title, kampung tersusun Melayu etc. Simple, relevant and effective
I wonder what great things would have been done if PR assumed federalship.
Better fence it up and place all the mca members inside, in the same way the Sri Lankan army has done to the Tamils who fled from the offensive against the LTTE.
Few years ago :
AGUSTA for sale….for EURO1
Any taker? …….. SOLD!
(All malpractices by the management (UMNO-related off course!… are burried -file closed)
Few years later…..
Now
PKFZ for sale………. for EURO1
Any taker?
Wow what happened to MCA’s proclaimation on the need to “harden up” (or was it “toughen up”)? Oh wtf. They must be stiff and really hard now. Relak bro. No worries. Sini bukan korea. The media is on your side. They will not drive you orang to bunuh diri. Stand close to najib. That is what you patut buat. Dia pasti akan kasi protection. You pokok besar. Najib pokok besar. You kasi dia shade. Dia kasi you shade. Itu dia cara yang betul. Cara umno. Of course, for wayang he has to get rid of you. But you know lah. After that you get appointment as chairman of something.
RIP.NAJIB.UMNO
Viva Malaysia.
PKFZ to close shop
Mana boleh?
Big fat hope
Why would the gomen kill the golden geese
that lay them golden egg after golden egg?
How to be instant multi-millionaires or billionaires?
Cannot, cannot, cannot
Must keep pumping in more $$$ RM $$$
Gasak fast and furious b4 the next teardrop falls (GE13)
Make hay while the sun shines
Some highlight from PWC Reports:_
KPA proposed to buy the land instead of compulsory acquisition (which is better for KPA), from KDSB for RM1.088 bil. Cabinent approved the proposal to buy the land instead of compulsory acquisition on condition that PKA was able to finance the purchase from its own funds.
(The condition was just a justification to legalized the evil plan, otherwise where to start the milling process. This also will clear the Grand Old Man any wrong doing. “ You see the approval was on condition this and that. Now they can not met the condition, do blame the Cabinet blame PKA. I HAVE SAY IT VEY BEGINNING THIS PROJECT WAS WITH ONE AND ONLY ONE CLEAR INTENTION TO MILK THE THE TAX PAYERS MONEYS. The following disclosure and comments from PWC vouched for my believe. With the good starting point of 1.088 bill, this was how the devil start. This was just the beginning of the milking process and more to come.)
Other comments by PWC:-
A development agreement was entered into on an estimated sum of RM1 billion without any detailed plans. ( well this was common practice just do it put in the figure justify later , plan can come later to fixed in the sum as agreed. It will only higher and never lower)
Development contracts totaling RM1.8 bil were all awarded to KDSB without competitive bids. ( very normal indeed. In fact this sucker has long been identified to carry out the milking evil plan)
PKA did not adhered to theJafzi/Tsg MASTER PLAN and its recommendation for phases development and instead developed the project in one go basis. ( that mean that want to milk the cow as fast as possible. Scare the cow will died before all the milk could be milked out?)
The interest rate in the first development agreement increase from 7.0% to 7.5%.
Interest rate of 5% in the first additional developments works increased to 7.5% in the second additional developments works. This was higher than the rates of 5.25% to 6.15% in the bonds issued by KDSB. ( That means KDSB is going to make a profit just out of interest rate differentiate. How smart ?)
with all those lope side term and conditions. This will bring you back to PLUS highway contracts.
It is better to make a kill once and for one rather than let the leaches suck on you for many years to come.
After 10 years, PKA starts to act to recoup losses. It is better to close shop now to minimize the losses and damages.
As facts and figures are out, who will be held accountable for the PKFZ scandal. Najib, do you know that the report implicates many highly influential people.
Najib must act on the findings of the report (PERFORMANCE NOW) to ensure that the people’s interests (PEOPLE FIRST) are fully taken care of and protected.
Please do not tell us that the report will suffer the same fate as the IPCMC as well as the correct, correct, correct RCI.
You think this is bad enough, not yet! Wait till you hear how they defend corruption.
Close this shop and open a new shop?????????????????
The NST Online headline screams: “Port Klang Free Zone Scandal: Tee Keat puts job on the line.”
And yes, he is right. It is dangerous to expose corruption in Malaysia, what with a crooked government running the country. Datuk Syed Ahmad Idid should know well. Who was the crooked Prime Minister who left us this legacy?
Best thing is to close the UMNO and BN government. Period!
Everyone knows that nothing will come out of this PKFZ investigation or whatever you call it. The guilty will continue to run scott free and still cheat the rakyat of their money
I hereby announce my keen interest to the umno government to take over the PKFZ fully and completely and with the company being in a state which is free of all liabilities and encumbrances.
I hereby offer to shareholders of PKFZ the norminal price of RM1 for the complete take-over.
If the offer is accepted, I shall immediately cause an agreement to be drawn up at PKFZ’s cost (which will be capped at RM10m) for execution.
I make this offer as a concerned and caring citizen of malaysia and in the wider interest of the world and the universe.
CANNOT! CLOSE SHOP MEANS CLOSE WATER TAP! NO MORE WATER!