Did OTK regard the post of Transport Minister as just a postman or delivery boy for PKA without any ministerial responsibility to ensure that the RM1.2 billion variation order demanded by Kuala Dimensi Sdn. Bhd for PKFZ was proper and legitimate?

My three questions (No.61 to No. 63 on the 21st day in the current series) to Transport Minister Datuk Seri Ong Tee Keat on the RM12.5 billion Port Klang Free Zone (PKFZ) scandal today are:

No. 1: Yesterday I had asked Ong to confirm authenticity of the exchange of letters which appeared on the website, http://pkfz.blogspot.com/, showing that on 10th May 2008, he had written to the Prime Minister seeking approval for RM1.2 billion payment as variation order for the PKFZ project to its turnkey developer, Kuala Dimensi Sdn. Bhd (KDSN).

In his response from Paris in his blog, confirming the authenticity of the exchange of letters, Ong said that he was merely relaying the Port Klang Authority (PKA) board’s decision to the then Prime Minister, Datuk Seri (now Tun) Abdullah Ahmad Badawi.

Ong said: “I was then into my ministerial job for less than two months and the PKA board’s decision was made even before my time. Besides, the PricewaterhouseCoopers had not even started their position review work.”

He added that the variation order was approved by the PKA board in 2008 and had written to him asking him to write to Abdullah to apply for the additional funding.

He noted that at that time PKA was also at risk of defaulting payment as the deadline to meet its financial obligations was approaching.

I am stumped by the sheer arrogance and utter sense of irresponsibility of Ong’s reply, adopting a position disclaiming all responsibility for the RM1.2 billion KDSN variation order.

I want to ask Ong whether he regarded the post of Transport Minister as just a postman or delivery boy for PKA without any ministerial responsibility to ensure that the RM1.2 billion variation order demanded by KDSN for PKFZ was proper and legitimate?

Has he forgotten that one month before he endorsed the RM1.2 billion KDSN variation order, he had publicly declared in early April 2008 that he would “tell all” about the PKFZ scandal, how the project had ballooned to RM4.6 billion – yet one month later, Ong was merrily endorsing another RM1.2 billion PKFZ development cost variation order without batting an eyelid?

Wasn’t Ong aware that even if he wanted to endorse KDSN’s RM1.2 billion PKFZ variation order, he had to take it to the Cabinet for approval as this was one of the specific conditions of Cabinet approval for the PKFZ project in 2002 – that every RM100 million variation in the development costs of PKFZ would require prior Cabinet approval?

Here there was a not just a RM100 million variation order but one which exceeded the RM100 million limit by 12 times!

When did the Cabinet alter its 2002 decision that every RM100 million variation in the development costs of PKFZ require prior Cabinet approval (binding the two former Transport Ministers, Datuk Seri (now Tun) Dr. Ling Liong Sik and Datuk Seri Chan Kong Choy) as to exempt the RM1.2 billion variation order during the time Ong as Transport Minister from being endorsed by the Cabinet?

Ong could not claim that he did not know about this specific Cabinet condition for the PKFZ project on the ground that he was not in the Cabinet in 2002, as I had repeatedly mentioned this Cabinet condition in Parliament since 2007!

Ong also could not claim that he did not have the time to submit the RM1.2 billion PKFZ variation order to Cabinet for approval.

Ong was appointed Transport Minister on Tuesday,18th March 2008, and there were eight Wednesdays (when Cabinet met) before Ong sent off his endorsement letter asking for approval for the RM1.2 billion variation order from the Prime Minister.

Why didn’t Ong bring up this RM1.2 billion PKFZ development cost variation order demanded by KDSB at any one of these eight Cabinet meetings before he shot off his letter to the Prime Minister asking for approval to release the RM1.2 billion payments?

If this is not Ministerial dereliction of duty, I do not know what it is!

Question No. 2: I welcome the announcement by the Transparency International Malaysia president Datuk Paul Low’s announcement of his resignation as a life member of MCA, so as not to compromise his appointment as Chairman of PKFZ ad hoc committee on corporate governance and his impartiality in investigating the RM12.5 billion PKFZ scandal.

I had publicly stated that I had not doubted Paul Low’s integrity and was prepared to give him the opportunity to “walk the talk” on making a significant contribution to improving the system of governance and integrity in government agencies.

The only question is whether Paul Low and the PKFZ ad hoc committee on corporate governance will be allowed to fully probe into all the past PFKZ misdeeds,misuse of powers, conflict of interests, corrupt practices or all forms of malpractices which landed the country with a RM12.5 billion PKFZ scandal though it started off as a RM1.1 billion project in 2002 under Transport Minister, Tun Dr. Ling Liong Sik before quadrupling more than four times to RM4.6 billion in 2007 under Datuk Seri Chan Kong Choy as Transport Minister.

This question is pertinent as Ong had declared after the announcement of the PKFZ ad hoc committee on corporate governance that “we have had enough of investigations”, implying that Pau Low and his committee would not be able to probe into any past misdeeds of the PKFZ scandal.

Can Ong answer this question?

No. 3 – The first week of Parliament has ended and MPs are still not given copies of the PwC report on the PKFZ and the appendices, although this was virtually promised by Ong through the PKFZ official website.

Let me ask Ong one specific question: Will the PwC report and appendices be given to MPs before the current meeting ends on June 30th?

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26 Replies to “Did OTK regard the post of Transport Minister as just a postman or delivery boy for PKA without any ministerial responsibility to ensure that the RM1.2 billion variation order demanded by Kuala Dimensi Sdn. Bhd for PKFZ was proper and legitimate?”

  1. Talking about variation order (or cost), I believe in Malaysia, variation orders are routinely bigger than the original contracts. Check it out, hundreds if not thousands of them. Malaysia is ingenious in coming with systems that breed corruption and abuse of power.

  2. Ong Ta Kut was a mere messenger boy for Tiong. If KDSB defaulted on their bonds because PKA didn’t pay KDSB, then Tiong would have no choice but to go public on what the money from the scam was used for.

    So now everybody is holding on to everybody’s b@lls. You don’t squeeze, I don’t squeeze. You squeeze, I squeeze harder….

  3. What is Tiong…godfather?
    Anyway…he talked big…”Don’t mess with me”…like big gangster chief?
    What type of a minister will talk like that?
    Lim Kit Siang loves braggarts and hollow warnings.
    He is messing with Ta Kut…day and night…every day.
    Look at the idiot smiling…..no actions.

  4. Oh you mean messenger boy for Naif Ton Raza?
    I think….next few days he will be visiting old folks and .ophanage homes…chinese schools..and temples…..make some donations promises..headline news…nothing given..just like Ling Liong Sik..biggest liar of MCA…biggest jumbo jet carrier to mamak from MCA.
    Ta Kut and OKT are his students.
    How are the performing?

  5. Ong said: “I was then into my ministerial job for less than two months and the PKA board’s decision was made even before my time. Besides, the PricewaterhouseCoopers had not even started their position review work.”

    So my faults is it? WTF!!!

  6. If every minister is using the same arguments as OTK, we the Rakyat will have to pay additional VO cost of RM1.2 Billion X the no. of Ministers in the cabinet, let say 30, it would be cool RM36 Billion!!!
    If the PM resuffle the cabiner once every few years, we the Rakyat is going to pay RM36 X 2 or X 3 or more!!!
    No wonder we dont know where are all the Petronas money gone to!!!
    May be OTK should propose that cabinet minister should work for life, so that there’s no such problem!!!

  7. Brother Kit Siang, Pakatan Raykat needs to be prepared for the eventual take over of this RM12.5 billion PKFZ scandal in about 3 years’ time. It is crystal clear that BeEnd is buying time to expose the “tell all” on the PKFZ scandal. We have doubt that BeEnd can get to the bottom of the PKFZ scandal and no one will ever be brought to account for this mess by GE13. This sh*t will be handled by PR whether PR likes it or not.

  8. YB

    Could you make it it very, very clear for us about the $1.2 billion VO by KDSB:

    1. Was it approved and paid.
    2. Approved but not paid (since PWC report says MOF loan of $4.2 billion has not be drawn upon yet).
    3. Not approved.
    4. Not approved but paid.

    Which is it? Tq.

  9. Bro LKS, 3 fox is running now, you need a bigger cage to hold them in. but of cos you need to watch out the behine too. cos that lion is hunting at you. well, if you cant hold them all, never mind, just catch 1 will do. others 2 sure scared like crabs.

  10. Again, this bunch of politicians in MCA just talk……talk……
    They still could not accept the very fact they are already irrelevant to the rakyat especially the chinese since.
    What A bunch of thick skin and zero integrity bums.
    Unless they stand up against their BN masters, they might as well “dudok diam diam and dapat duit.”

  11. Tiong is but a “SWEET POTATO EXPERT”. After all, he was the one who led the whole gang of BN MPs to Taiwan on an agricultural study trip. To study what? Perhaps the one delicacy and famous food plant from Taiwan – SWEET POTATOES (fan shu)!

  12. Is the PKFZ project really a sunk cost to PKA? How much does PKA still owe Kuala Dimensi Sdn Bhd as at todate? Is it possible for Ong Tee Keat as the Transport Minister to get the High Court to absolve the legal obligations as well as the financial obligations as required to be fulfilled by PKA based on the mutual agreement between Kuala Dimensi Sdn Bhd and PKA?

    All these questions seem to be much more relevant in order to get the PKFZ project rescued from further sinking into the oblivion of financial quagmire. Will YB Kit please raise up these questions in the parliamentary session for Ong Tee Keat to answer?

  13. This is another classical case where the politician twist and turn their tongue in their favour. Yes, OTK is just deliver a message from PKA. Nothing else. He was just conveying a message. If he is smart he should just go to any of the cyber cafe and email the letter over there is no need to to be in MOT letter head.

  14. Onlooker:

    About RM 1.2 billion of the government soft loan has been drawn. The next instalment due from PKA to KDSB is on June 30th. Do you think Ong Ta Kut will have the guts to suspend the payment, pending the ongoing review by Skrine & Co on the legality or appropriateness of the contracts ? I don’t think so. This is a BN project, and Tiong is only the bag carrier.

    If the next instalment on June 30th is paid by PKA on the instructions of Ong Ta Kut, then it is indeed confirmed that the appointments of the task force, including Skrine and PwC, are mere window dressing or sandiwara for the BN thieves.

  15. Congratulation Sdr. Lim, now you got OTK and his advisors scared shit given that OTK just when on new level of personal attacking mode with Sdr. Lim. Frankly, I have no idea what he is talking about in his latest article on his blog. You can tell a scared bully when he starts name calling and flailing in his arguments instead of getting deeper into a real fight. Using underhanded means so adolescent and last century emotionally unintelligent.

    Chua Soi Lek is doing a bit better by trying to lop a bomb in the middle of this by proposing DAP-MCA talks which is of course rediculously a dud but still he gets pointers for trying. So it appears that the sex-tapped CSL is actually more mature and sharper leader than OTK but of course he is not in the middle of the mess.

    Keep it up Sdr. Lim, we know you get paid like a postman but do a great job of delivering the people’s message and more…

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