Ong’s last chance to “tell all” about the causes and culprits of the RM12.5 billion PKFZ scandal to salvage his reputation even at the price of losing his Ministership

My three questions (No.67 to No. 69 on the 23rd 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:

Question No. 1: Finally, the Transport Minister, Datuk Seri Ong Tee Keat is appearing in Parliament tomorrow to give an accounting on the RM12.5 billion PKFZ scandal, after absconding overseas to the Paris Air Show when he should have stayed behind to appear before Parliament when it started its meeting last Monday. It is a great embarrassment and shame that the MCA President has to be forced to appear before Parliament to give a ministerial statement on the PKFZ scandal on the directive of the Prime Minister, Datuk Seri Najib Razak.

My first question today to Ong is whether his Ministerial statement would contain answers to the Five Questions on the PKFZ which I had posed to him on 9th April last year, viz:

  1. Was it true that when the Port Klang Authority and the Transport Ministry insisted on buying the 1,000 acres of Pulau Indah land for PKFZ at RM25 psf on a “willing buyer, willing seller” basis, in the face of strong objection by the Attorney-General’s Chambers and the Treasury which had recommended that the land be acquired at RM10 psf, the Cabinet had given its approval subject to two conditions: (i) categorical assurance by the Transport Minister that the PKFZ proposal was feasible and self-financing and would not require any public funding; and (ii) that every RM100 million variation in the development costs of PKFZ would require prior Cabinet approval.
  2. In the event, the first condition was breached when the PKFZ project ballooned from RM1.1 billion to RM4.6 billion requiring government intervention and bailout while the second condition was breached with the original PKFZ development costs of RM400 million ballooning to RM2.8 billion without any prior Cabinet approval ever sought for every RM100 million increase in development costs.
  3. The Transport Minister had unlawfully issued four Letters of Support to Kuala Dimensi Sdn. Bhd (KDSB), the PKFZ turnkey contractor — to raise RM4 billion bonds, which were regarded as government guarantees by the market. The Transport Minister had no such powers to issue financial guarantees committing the government, as it could only be issued by the Finance Minister and only after Cabinet approval. The first Letter of Support was issued by the former Transport Minister, Tun Dr. Ling Liong Sik on May 28, 2003, which was Liong Sik’s last day as Transport Minister while the other three were issued by Kong Choy.
  4. Whether it wasn’t true that in recognition that the four unlawful “Letters of Support” of the Transport Minister had nonetheless given implicit government guarantee to the market that the Cabinet in mid-2007 gave retrospective approval for the unlawful and unauthorized four Letters of Support by the Transport Ministers in the previous four years creating RM4.6 billion liability for the government in the bailout of PKFZ.
  5. Why no action had been taken against the two previous Transport Ministers, both Liong Sik and Kong Choy, as well as the government officials responsible for the unlawful issue of the four “Letters of Support” – getting the government embroiled in the RM4.6 billion PKFZ scandal?

If Ong’s Ministerial Statement tomorrow does not give clear and unequivocal answers to these Five Questions, which I had posed in Parliament as far back as November 2007, then Ong’s Ministerial statement would have failed the test of fulfilling the most basic standards of ministerial responsibility and accountability.

Question No. 2:

On 3rd June, 2009 in Question No. 16, I had pointed out that the MCA leadership, through three Transport Ministers since 2002, viz Datuk Seri (now Tun) Dr. Ling Liong Sik, Datuk Seri Chan Kong Choy and Ong, four MCA Port Klang Authority (PKA) Chairmen, viz: Tan Sri Dr. Ting Chew Peh, Datuk Yap Pian Hon, Datuk Chor Chee Heung and Datuk Lee Hwa Beng must bear responsibility for the national shame and colossal losses represented by the PKFZ scandal and asked, in particular why Chor has not stepped down or suspended from his present post of Deputy Finance Minister, as he had been named by the PricewaterhouseCoopers (PwC) report as one of those involved in potential conflicts of interest.

I now ask whether Ong agrees that the former MCA President Datuk Seri (now Tan Sri) Ong Ka Ting, should also join the seven MCA leaders named above to give an accounting of the role they played in the RM12.5 billion PKFZ scandal, as Ka Ting was Acting Transport Minister for a month from 29th May to 30th June 2003.

Will these eight MCA leaders who had variously occupied important positions as Transport Minister or PKA Chairman in the history of the PKFZ scandal come out with a Joint Memorandum on the role played by everyone of them in the “mother of all scandals”?

Third Question.

Yesterday, PKA Chairman Datuk Lee Hwa Beng denied the allegation in the website, http://pkfz.blogspot.com/ that his tenure as PKA Chairman had lapsed on 15th February 2009, and he lashed out at me for taking this blog allegation as “gospel truth” and alleged that I am guided by “half-truths and hearsay” in my statements.

To be frank, I had grave doubts about the allegation of the website http://pkfz.blogspot.com/.

This was because The Edge weekly (April 27 – May 3, 2009) which carried the cover story of “Total PKFZ bill – RM8 billion?” published a letter Lee responding to the Edge expose, saying that he was unable to respond to the report as his term as PKA Chairman “had technically expired on March 31 this year”.

This was why my media statement of April 28, 2009 posed this question to the Transport Minister:

“Can Ong explain his Ministerial inefficiency and incompetence in allowing the post of PKA Chairman to remain vacant from March 31, when he should have known that it is important to either re-appoint Lee or appoint a new Chairman so that no one could make the excuse that no decision could be made during the month of April on the publication of the PwC report on PKFZ scandal as the post of PKA Chairman is vacant!”

There was no answer from Ong but he promptly re-appointed Lee as PKA Chairman on April 29, 2009.

Lee said in his statement yesterday: “It is essential that there is no leadership gap at the PKA Board so that the smooth running of the Authority and the well-being of Port users are ensured.”

But there was a gap in the position of PKA Chairman left vacant for a month in the critical development of the PKFZ. Why was this so?

There was another reason why last Thursday, I had posed Question 59: “No. 2 – This website also made a very serious allegation – that Datuk Lee Hwa Beng’s tenure as Port Klang Authority (PKA) Chairman ended on 15th February 2009 and that until today the Yang di Pertuan Agong had never given consent to extend or renew Lee’s term, and that Ong is asking the Prime Minister, Datuk Seri Najib Razak, to backdate Lee’s appointment. Is this true?”

As this website had achieved the scoop of uploading the exchange of letters to show that on 10th May 2009, Ong had written to the Prime Minister to approve RM1.2 billion payment as variation orders for the PKFZ project to its turnkey developer, Kuala Dimensi Sdn. Bhd, it has won the right for its question about Lee’s re-appointment as PKA Chairman to be properly answered or denied.

The second part of the question – the website’s allegation that Lee’s re-appointment had not been given the Royal consent and Ong is asking the Prime Minister to backdate Lee’s renewal, has not been answered.

I had given Ong a very friendly warning way back in April 2008, warning him not to be the third Transport Minister whose reputation “would be marred and tarred by the RM4.6 billion PKFZ scandal if he reneges on his pledge to ‘tell all’ soon”.

Ong would not be in the sorry plight he is in today if he had heeded my friendly advice. Although it is very late, it is not impossible for Ong to salvage his reputation, but his Ministerial statement tomorrow’s would be his last chance to come clean and tell all on the causes and culprits of the RM12.5 billion PKFZ scandal even if it means losing his Ministerial post!

27 Replies to “Ong’s last chance to “tell all” about the causes and culprits of the RM12.5 billion PKFZ scandal to salvage his reputation even at the price of losing his Ministership”

  1. “(i) categorical assurance by the Transport Minister that the PKFZ proposal was feasible and self-financing and would not require any public funding; ”

    This was the root cause of the all problem in this PKFZ.

    Please note that in any profit projection there is always unseen risk and unseen circumstances that no matter how careful and how much effort that have been put to ensure the estimates variances will stick to within the limit.

    This condition was set simply to justify the costs while well knowing that this costs was inflated to milk the tax payer money.

    We have to understand that, in Malaysia, there is always so call Malaysia boleh attitude and many mega projects has simply go burst without properly or just intentionally to get it fail and the money just give away.

    It was such a sick project, the only different was this time all parties really do it the biggest possible and may not be once for all. It the government still can effort there will another biggest big in pipe line.

  2. “Why no action had been taken against the two previous Transport Ministers, both Liong Sik and Kong Choy, as well as the government officials responsible for the unlawful issue of the four “Letters of Support” – getting the government embroiled in the RM4.6 billion PKFZ scandal?”

    YB Kit to be very honest, how on earth there will any action to be taken against these people while all these are all former BN fellow?

    Put it to survey, no single well thinking Malaysian will believe action will be taken BN government against their own people.

  3. Agree with Kit on his friendly warning not to just joint in another black Transport Minister. He should do the right things at the right time and just like ever body knowingly and assisting to conceiving this dirties project in Malaysia history. OTK for as far as I know is a decent guy but the most testing time is when you have climb up to the top that will test one fellow will still follow his concient. I doubt he will go all out to do the right thing as this definitely cause him his ministership.

  4. in the Uk’s parliamentary expenses scandal, involving some gbp500,000 (based on agreed paid back amount by the mps), already cost the job of the speaker, the minister for justice, the home secretary, communities secretary, the minister for employment, the secretary of state for transport, and the exchequer secretary to the treasury and many conservative and labour mps to retire from next election.

    (1) let’s do some maths:

    gbp500,000 = myr2,920,000
    myr12,500,000,000/myr2,920,000 = 4280 times of the UK scandal.

    and nobody is apologizing? and nobody is resigning? and no legal action to be taken? and otk is still sitting on his ministerial post? and the speaker is still there turning down emergency motion?

    THICK SKIN. this could only happen in malaysia!

    (2) if the similar freedom of information act to be enacted in malaysia, i just wonder how many of cabinet ministers and mps will have to go.

  5. Ask Ong Ta Kut why he has been so selective in answering the rakyat’s questions posed on the PKA website. I have asked PKA to suspend the next payment due to KDSB on June 30 as there is prima facie evidence of wrongdoing under the development agreement, but my question or request was not published or commented upon.

    Be a man, Ong Ta Kut. Answer the question. Also be brave enough to post the terms of reference for the Task Force which was announced a fortnight ago. We will find you wherever you go to hide.

  6. Had the UK’s parliamentary expenses scandal occurred in Malaysia, the umno-owned mass media, police and judiciary would make sure that the whistleblowers be incarcerated in Kamunting so that nothing is leaked out to the public.

  7. OKT will not tell.
    He wants to sue LKS……to avoid telling.
    Let Malaysians judge..is LKS not asking good questions on behalf of Malaysians?……….doing the job we exactly elected him to do?
    What is this smart idea to sue…avoiding answering?
    Does OKT think we are stupid?
    Ah…but if Najib sue everyone to go to court on the Mongolian murder case…instead of swearing by the Koran…he does not know her…indirectly hiding under Islamic religion..and let Allah judge him……not Malaysians to judge him…….lawfully.
    That’s is trully thinking Malaysians are really stupid.
    OKT brain cannot match his master…..and his master is already half past six…..so what is OKT?….HALF NUT??
    Read and go to puke..if you must…..no need to tell.

  8. Do I need to tell readers I am busy busy…no time to check grammar and spelling mistakes?
    I just try to make sure ….my messages are understood…which sometimes I do pray…they should not be misunderstood….by young voters..hahahahahahahaha
    Do I need to tell…..I am not feeling well…yet find time to part my comments?
    Do I need to tell readers how many times I shitted after taking medicine?
    So go puke and don’t tell la.
    Where is ekin??

  9. Do I need to tell readers I am busy busy…no time to check grammar and spelling mistakes?
    I just try to make sure ….my messages are understood…which sometimes I do pray…they should not be misunderstood….by young voters..hahahahahahahaha
    Do I need to tell…..I am not feeling well…yet find time to part my comments?
    Do I need to tell readers how many times I went to toilet after taking medicine?
    So go puke and don’t tell la.
    Where is ekin??

  10. This OTK is shit scared to face the opposition on the PKFZ issues.
    Brother Lim should bring some daipers along just in case if he piss during question time come Monday.
    Those two previous Transport guys are now enjoying the $$$$$$$$$$$$$$$$$ robbed from the poor rakyat.
    I bet 110% none of these 2 guys will be pull out for questioning from their cozy comfort homes now. They will not even be penalised. This is Bolehland.

  11. you are doing just fine, monsterball. keep up the good work since you’re to busy to ask your six year old for help. connecting the dots is important and so is crossing the t’s and dotting the i’s. your dots are memory spaces in your memory. early signs of alzheimer. we need your sidekick back to help you out.

  12. limkamput,

    the dumb in question is not only shameless to tell people he is puking, but also shitting…anyway he can’t tell the difference between his mouth and arse…ha ha ha…

  13. Just ask Ong Tee Keat to reveal how the business plan financial model is suppose to work to turn it around i.e., the spreadsheet they are going to use. The fundamental drivers must be verified i.e., rent/lease per sq m assumption, occupancy rates, management cost assumption including interest paid and how its going to be financed….

    I still think OTK don’t know that it can be be turned around. I don’t think he understand how the key drivers work and how tight assumptions are…

  14. Malaysian do not want a lousy Transport Minister like OTK. What’s the point of social-networking in Paris, when internal PFKZ scandal remains unsolved?

    OTK always claims to serve peope first. But, where are you when problems come? Paris?

    Rakyat knows why OTK is keen to be a minister. Free trip to overseas, isn’t it?

  15. This on the PKA website:

    Q: Could the successive PKA chairmen have detected the wrongdoings and how are they responsible for the scandal?

    A: The PwCAS report identified apparent weaknesses in governance surrounding the project….

    What sort of answer is this ? A typical Barisan Nasional answer….avoid, evade, duck, wink wink…..

  16. Another question that I posted on the website and not answered:

    “Suggest that PKA suspends all future payments due to KDSB as there is prima facie evidence of wrongdoing. Start with the suspension of the next payment due on June 30th.”

    Ong Ta Kut is obviously hell-bent on making these payments, and I wonder why.

  17. YB, to help OTK and other with less Proficient in English on the matter, may be you should ask Simple & Direct questions to OTK instead of hose lengthy ones you had put forwards. The Questions so forwarded are to seek explanation, testification from MOT overseeing the PKFZ project. OTK and his Deputy or responsible suibbordinates are obliged to answer. Example,

    With Reference to PWC report,
    1. Is PKFZ under PAA?
    2. What should be done by PKA to get the approvals and amendments from the Parliament and the Ministries (MOT, MOF, etc) concerned?
    3. What were being approved or amended with a list of Sequence of Event?
    etc etc..
    4. Their official comments to PWC reports.

    If AG (Attorney General, Auditor General) should monitor or advise on Point 2, please also cc them!

    Meanwhile, DAP should also compile their findings to see what should be clarified? From MOT, MOF or/and others! Or, at least a chart to so what should be the Proper Procedures for such a Project.

    The main purpose are
    1. What are the legal ground for PKFZ to start and run.
    2. Has PKFZ been properly been approved accordingly?
    3. What kind of defaults are to be classified under the “shortfall” mentioned by PWC report?

  18. Godfather Says:
    Today at 10: 48.04
    ——————————————————————
    The way how LHB worked with his website is to allow post from his buddies and then he answers.

    Do you think the websites will post questions that caught them or questions they are shy to answer?

    And, many of those Q&A does not even scratch the itching!!

  19. Even questions from his buddies must be answered properly and professionally ! Not in the shameful way that is displayed on the website. Treating the rakyat like little kids….

  20. Godfather.

    Will Buddies of LHB ask Concrete Question to LHB to ask him for the Truth?

    Every incoming Question to PKA (LHB) website is subjected to “modification”. ALL Question they do not want to answer will go down the drain!!
    —————————————————————
    In 2003/2004 in LHB’s website, a question was put forwards to ask where is the Club facilities for Wangsa Baiduri Condominium Project which was started in 1986. He cted quickly and confessed that because he was only a Councilor in MPPJ in 1996, he was “forced” to re-approve the Club to become Part of an Hotel. Therefore, the residents lost their Club facilities! After that, the website was redone with old records off. Alll questions are subjected to “moderation” and you can only find people of the so called Resident Association (appointed by MPSJ?doing the questioning and he reply to keep Q&A active.

    Such Q&A were to tell People that he works with Consultation to District Representatives. And, They are appointed by MPSJ. Only People with some understanding of Town & Country Planning Act, (on Housing projects) knows what were going on. A lot of violations were made. But on records, they did consulted with District Repreentative!!

    In one of his Q&A in 2007, he disclosed that he had approved Subang Jaya Medical Center for “temporary” extension of the CAr Park of Subang Medical Center using part of the Subang Ria Park land (A Town Park in Subang Jaya). He said he had consulted those District Representatives (their men/women)!!
    —————————————————————-

    Hope you realize that MCA had really put an “old” hand to hand scandal!! The total size of manipulation under LHB in MPSJ could very much be comparable to PKFZ if people care to put up all that LHB had handled from his days with MPPJ!

    For Subang Jaya alone, there should be some 58ha of Green Land reserved for SJ and some 58ha of land for Water Retention Ponds. The latter went to Sime UEP under the so called Subang Ria Park and Wangsa Baiduri!! They are at a price of a few hundred psf!!

    Don;t forget there are a lot of reserved Green land and Water Retention Ponds under MPSJ (not to mention MPPJ).

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