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Why is Ong Tee Keat afraid of a Selangor Exco member sitting on the PKA Board and insist on having his own appointee representing Selangor State Govt?

My three questions (No.37 to No. 39 on the 13th 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:

1. In his blog from Beijing on 3rd June 2009, Ong wrote:

“At this very moment, professional experts and entrepreneurs have been roped in to provide their views and expertise on how to bring PKFZ back on track for which it was originally conceived.

“ We are not sitting still and playing rhetoric. In the weeks and months ahead, my Ministry and PKA will put in place a series of action plans to lessen the pain on taxpayers.”

PricewaterhouseCoopers (PwC) submitted its “position review” report of the Port Klang Free Zone (PFKZ) on 3rd February 2009, which means Ong had more than four months to digest it.

Can he explain what he had done in these four months apart from “sitting still and playing rhetoric” to “put in place a series of action plans to lessen the pain on taxpayers” with regard to the RM12.5 billion PKFZ scandal and why he needs four months just to announce a blue-ribboned Task Force to make some more studies in the next two months to make recommendations “for follow-up actions” to be taken by the Government? Isn’t this a colossal waste of four months after the PwC report on PKFZ? Continue reading “Why is Ong Tee Keat afraid of a Selangor Exco member sitting on the PKA Board and insist on having his own appointee representing Selangor State Govt?”

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Govt studying DAP proposal to buy back North-South Expressway and end toll collection in six years

The government is studying the DAP proposal that the government buy back the North-South Expressway to end toll collection completely in six years.

In reply to my query during the winding up of the committee stage debate for the RM60 billion mini-budget, the Second Finance Minister, Tan Sri Nor Mohamad Yakcop said the government is studying the DAP proposal to return the expressway to the people.

The proposal, a comprehensive, practicable and creative one formulated by the DAP Ops RESTORE (Restructure Toll Rates & Equity) Team, after consultations with legal experts, investment bankers as well as the general public, has the following features:

1) Impose no further increase in North-South Expressway toll rates.

2) End toll collection after 2015 instead of 2020.

3) Create RM14 billion savings for Malaysians from 2009-2015 – saved either (i) by Malaysians using the highway because of no further toll rate increases or (ii) in terms of compensation which would have to be paid by the Government to PLUS Expressways.

4) Incur no additional cost for the Malaysian Government or Malaysian tax-payers

Continue reading “Govt studying DAP proposal to buy back North-South Expressway and end toll collection in six years”

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Horror flight on board MH161

by Radhika Iyer-O’Sullivan
Jan 20, 09 3:55pm
Malaysiakini

I am a Malaysian currently residing and working in Dubai. On Dec 25, 2008, I flew with Malaysian Airlines flight MH161 to Kuala Lumpur to visit my parents. I was in seat 36H (an aisle seat) and the seat next to me, 36K (window seat) was vacant. The flight stopped over at Karachi for an hour.

In Karachi, more passengers boarded the plane. One male passenger boarded, showed his boarding pass to a stewardess and she pointed to seat beside me (36K). The man looked at me and said, ‘She’s a Hindu, I cannot sit beside her.’ The stewardess responded, ‘So what? What’s wrong with Hindu?’ The man then began to yell and shout that he would not sit next to a Hindu.

The crew insisted that he had to because there were no other seats available because the plane was full. Then this passenger sat down but began to verbally abuse my faith and the crew members. I sat in my seat but was physically cringing away from him. The flight supervisor was summoned and until then the man was still seated next to me. Imagine my shock, horror and fear in being next to a hostile, abusive person.

One steward did stand next to me but did not offer any help and I did not feel safe or reassured. I reached out and told that steward that I did not feel safe anymore. I said this to him softly in English and he told me to sit and wait. He then walked off and a female crew member took his place. All this time I was under the impression that this hostile passenger beside me was a Pakistani.

I then told the stewardess in Malay that this man should not be seated beside me after what he had said about me. There were other Malaysian passengers sitting in the same area and all of them heard me. She smiled and merely nodded. Continue reading “Horror flight on board MH161”

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Whither National Air Transport Policy ?

Letters
by J Chan

The storm that is generated by the government’s decision to give the go-ahead to the Sime Darby-AirAsia consortium to build a brand new airport at Labu continues to blow unabated.

On the one side is a government GLC, Malaysia Airports Holdings Berhad (MAHB) which is being accused by AirAsia of not being able to meet AirAsia’s needs of no-frills service, and yet attempting to charge AirAsia “exorbitant” landside charges.

On the other side is MAHB which, through its website, defends its record of meeting clients’ expectations, and asserting that airport charges are being set by the Government, not by the airport operator.

What the public is inclined to accept is that the present LCCT is in a shambles, and is probably on a par with some domestic Indian airports.

MAHB defends this, as they have spent RM 170 million to build a new extension, which is now partially opened, and they say that the upgraded LCCT should be able to cater for up to 10 million passengers per year until 2013. After that, MAHB says that they have plans to build another terminal that is contiguous with the KLIA main terminal, and that this terminal could be ready by 2013.

AirAsia says that this is baloney, for MAHB have never really delivered commitments on time (they point to the current state of affairs at LCCT as an example) and that any delays would negatively impact AirAsia’s business model. Continue reading “Whither National Air Transport Policy ?”

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The new budget air terminal at Labu

Letters
by J.C.

I read with apprehension at the recent announcements by Sime Darby Berhad and Air Asia with respect to their receiving government approval to build a new low-cost terminal at Labu, Negeri Sembilan. The announcements coincided with a statement by Malaysia Airports Berhad (MAHB) that it is ready to construct a new low-cost terminal to replace the existing LCCT at KLIA. The statements, and the subsequent comments by Air Asia spokespersons, gave the impressions that a new low-cost terminal is urgently needed, that MAHB has not been responsive to the needs of Air Asia, that Air Asia could easily save 15 pct of operating costs by moving to the new terminal at Labu and that not a single sen of public money will be utilised.

The following questions need to be answered by the government:

1. Was the approval given to the Sime Darby-Air Asia consortium based on the construction of a totally new airport, complete with runway(s) ? No one has indicated that there will be new runways, but it would be ridiculous to assume that planes could land on the existing KLIA runways and taxi the 7 km to the new Labu terminal. Sime announced that the new terminal would take up approximately 3000 acres of land, and surely a terminal without runways would not require such a sizeable landmass. If there are going to be runways, who would be paying for the Air Traffic Control (ATC) facilities ? Who would be charging passengers for airport taxes ?

2. Was any cost-benefit comparison made with respect to the construction of a new terminal at KLIA as opposed to a new terminal (or should we say airport) at Labu ?

3. When the government agreed with the sponsors of the new Labu airport that the entire project would be privately funded, did it take into consideration issues like the KTM Komuter link from Labu to KL Sentral ? KTM would be expected to build the link, and this is government money. We all know that rail links are only viable with subsidy from the public sector. Look at ERL. After 10 years of operations, their debt is still guaranteed by the government of Malaysia, and they are still being subsidised annually through a minimum ridership clause in their concession agreement. Would the roads leading to Labu be privately funded or would they have to be built by the Works Ministry ? Continue reading “The new budget air terminal at Labu”

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RM4.6 billion PKFZ scandal – no need for MCA to campaign in KT if OTK continues to hide the truth

“Nothing to hide” – this was the front-page headline of Sun yesterday on Transport Minister, Datuk Seri Ong Tee Kiat’s “tell-all” press conference on Sunday on the RM4.6 billion Port Klang Free Zone (PKFZ) scandal – which told absolutely nothing!

Although Ong adopted the stance that he had “nothing to hide”, in actual fact he had hidden the most important fact in his “chronology of events” on the RM4.6 billion PKFZ scandal – the RM4.6 billion retrospective approval given by the Cabinet in June 2007 to bail-out the four unlawful “Letters of Support” which gave implicit government guarantees issued by the two previous MCA Transport Ministers to the money market for the RM4.6 billion bonds for the PKFZ project.

Both the two previous MCA Transport Ministers had acted unlawfully, as they had no powers to issue financial guarantees committing the government, which could only be issued by the Finance Minister and only after Cabinet approval.

However, the Malaysian Government would have created a major crisis of confidence in the international money market if the Cabinet had not bailed out the two MCA Transport Ministers and given retrospective approval to the four Letters of Support which gave implicit government guarantees to the RM4.6 billion bonds issued by Kuala Dimensi Sdn. Bhd (KDSB), the PKFZ turnkey contractor, for the PKFZ project.

Can Ong explain why he had deliberately omitted this important fact in his “chronology of events”, which need not have to depend on the outcome of the Pricewaterhouse Cooper audit report? Or is he denying that Cabinet had given such retrospective approval? Continue reading “RM4.6 billion PKFZ scandal – no need for MCA to campaign in KT if OTK continues to hide the truth”

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Road carnage – disappeared from Abdullah’s radar screen in his last 100 days as PM

The Prime Minister, Datuk Seri Abdullah Ahmad Badawi is in his last 100 days as the fifth Prime Minister of Malaysia.

His silence and indifference to the latest road carnage in the express bus North-South Expressway (NSE) crash in Tangkak which killed 10 and injured 14 on Sunday, taking place in his last 100 days as PM, is in sharp and sad contrast to his anger and outrage at the Jalan Kuala Lipis-Marapoh three-vehicle accident which killed 14 on 30th November 2003 during his first hundred days as PM.

This also signifies another major failure of Abdullah with regard to his First-Hundred-Days-as-PM pledges– to end the road carnage on Malaysian roads.

I can still remember Abdullah’s furious and emotional outbursts five Novembers ago, when he expressed his frustration and upset at the number of road fatalities recorded under Ops Sikap V, with 25 road deaths on the first day of Hari Raya and the death toll which rose to 104 in the first six days of Ops Sikap V. Continue reading “Road carnage – disappeared from Abdullah’s radar screen in his last 100 days as PM”

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Another White Elephant for Putrajaya?

Letters
by Moaz Yusuf Ahmad
Subang Jaya,
Selangor

RE: Putrajaya monorail report and Putrajaya Corp. bus purchases

When it was announced in early 2008 that the government was taking another look at the Putrajaya monorail, it could hardly have come at a better time. This was in late April/early May, and I had just finished participating in the Majlis Bajet Consultation 2009. My experience trying to get from Persiaran Putrajaya (the site of the Finance Ministry) to Putrajaya Sentral was ironic. Though the bus fleet had improved (in terms of size) information about bus services and bus shelters was still non-existent on the main island.

My comments about the poor infrastructure for the bus services and the lack of demand to justify a monorail would strike a chord with many people. They agreed with me about the irony of investing millions of RM to build a monorail instead of investing a few thousand RM to build bus shelters that could be enjoyed by many.

Now that the report on the monorail has been completed it would be very interesting to hear what it has to say. Sadly, the government is keeping quiet about the report. Continue reading “Another White Elephant for Putrajaya?”

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RM4.6 billion PKFZ scandal – Chan Kong Choy still Minister-on-the-run

MCA Deputy President and Transport Minister, Datuk Chan Kong Choy has confirmed that he is a Minister-on-the-run from his sheer inability to answer five simplified questions on the RM4.6 billion Port Klang Free Zone scandal in Parliament yesterday.

When moving a RM10 salary-cut motion for the Transport Minister yesterday, I tried to make things easy for Chan by reducing the public furore over the RM4.6 billion PKFZ scandal into five simplified questions, 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 been 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 had in mid-year to give retrospective approval for the unlawful and unauthorized four Letters of Support by the Transport Ministers in the past four years creating RM4.6 billion liability for the government in the bailout of PKFZ.

5. Why no action had been taken against the Transport Minister, both Liong Sik and Kong Choy, as well as the government officials responsible for the unlawful issue of the four “Letters of Support”. Kong Choy had said that he did not know that he had no power as Transport Minister to issue such Letters of Support. Was this acceptable explanation for getting the government embroiled in the RM4.6 billion PKFZ scandal?

After each question, I specifically asked Chan to give a “yes or not” answer — to deny if the facts I had mentioned were untrue, and to explain and justify what he and the government had done if what I had said was undisputed and true.

In his reply, Chan completely ignored the five simplified questions on the core issues of the RM4.6 billion PKFZ scandal, as well as other questions which I had posed, including: Continue reading “RM4.6 billion PKFZ scandal – Chan Kong Choy still Minister-on-the-run”

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RM4.6 billion PKFZ scandal questions – why Kong Choy cannot give “yes or no” answers?

On the very first day of the current 45-day budget parliamentary session from August 27 to December 19, 2007, I had highlighted the scandal of the RM4.6 billion Port Klang Free Zone bailout in an emergency motion to adjourn the House under Standing Order 18(1) for a debate on an issue of urgent, definite public importance as there had been no proper accountability to Parliament whether by the Transport Minister or Finance Minister despite the various exposes in the public domain, such as

  • Hanky-panky in the purchase of the 1,000 acres for the PKFZ, despite objections by the Finance Ministry and the Attorney-General’s Chambers.
  • Mismanagement resulting in the pull-out of Jebel Ali Free Trade Zone (Jafza) from the project, which could become a “white elephant”.
  • Questionable cost-overruns of the PKFZ, ballooning to RM4.63 billion from the original estimate of RM1.1 billion.
  • The unlawful and unauthorized Transport Ministry issue of four “letters of support” which were used by the turnkey contractor – Kuala Dimensi Sdn Bhd (KDSB) – to raise RM4.6 billion bonds and get an AAA rating from the Malaysia Rating Corporation Bhd. for the PKFZ project.
  • Why the government and the 26 million Malaysians must now bear responsibility for a RM4.6 billion PKFZ bailout despite earlier assurances that the PKFZ project would be feasible, self-financing and would not involve a single ringgit of public funds.
  • Why the Prime Minister is breaching his undertaking of no bailout of mega-billion-ringgit “white elephant” projects — with the PKFZ bailout set to be the biggest financial scandal at the beginning of any Prime Minister.

However, my emergency motion on the first day of the current meeting of Parliament was rejected by the Speaker, Tan Sri Ramli Ngah as not urgent.

Since then, for the past three months, I had repeatedly sought to demand government accountability for the RM4.6 billion PKFZ bailout scandal but to no avail, as I came up against the wall of prevarication and evasion, with the ball kicked from one Ministry to another, namely the Transport Ministry, the Finance Ministry and the Prime Minister’s Department. Nobody wanted wanting to give a proper answer or accept accountability, with everyone either falsely claiming that it had already been answered or would be answered by another Ministry. Continue reading “RM4.6 billion PKFZ scandal questions – why Kong Choy cannot give “yes or no” answers?”

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RM4.6 billion PKFZ scandal – Chan Kong Choy on-the-run to London to escape further parliamentary scrutiny

I was surprised to read a Bernama report last night that the Transport Minister, Datuk Seri Chan Kong Choy has left for London to attend the 25th International Maritime Organisation (IMO) Assembly and will not be back until later next week.

My immediate reaction is that the Transport Minister is on-the-run from Parliament to escape accountability for the RM4.6 billion Port Klang Free Zone (PKFZ) bailout scandal, as the committee stage debate on the Transport Ministry for the 2008 Budget is scheduled for this Thursday or latest by Monday — when Chan will still be in London.

This is most irresponsible, as Chan knows that the PKFZ scandal will feature prominently in the debate on the Transport Ministry as for the past three months of the parliamentary meeting, no satisfactory answer had been given to the many issues and questions which I had raised repeatedly about the PKFZ scandal.

In fact, last Monday in Parliament during the committee stage debate on the Finance Ministry, I had posed the specific question as to why the government was “on-the-run” on the RM4.6 billion PKFZ scandal.

I had protested that government ministers were kicking the issue of the RM4.6 billion PKFZ scandal from one Ministry to another, evading accountability by refusing to give a direct answer to many pertinent questions which I had posed — with the ball being kicked among the Prime Minister’s Department, the Ministry of Finance and the Ministry of Transport with no one wanting to give a proper answer.

I had even simplified the questions on the PKFZ scandal which cry out for answer, viz: Continue reading “RM4.6 billion PKFZ scandal – Chan Kong Choy on-the-run to London to escape further parliamentary scrutiny”

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RM4.6 billion Port Klang Free Zone scandal — why is the government on-the-run?

This is the question I posed in Parliament today — “Why is the government-on-the-run on the RM4.6 billion Port Klang Free Zone (PKFZ) scandal?”

During the 2008 Budget committee stage debate on the Finance Ministry, I started my speech protesting against government ministers kicking the issue of the RM4.6 billion PKFZ scandal from one Ministry to another, evading accountability by refusing to give a direct answer to many pertinent questions which I had posed — with the ball being kicked among the Prime Minister’s Department, the Ministry of Finance and the Ministry of Transport with no one wanting to give a proper answer.

I simplified the questions on the PKFZ scandal which cry out for answer, 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. Continue reading “RM4.6 billion Port Klang Free Zone scandal — why is the government on-the-run?”

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ECM-Libra/Avenue merger and approval of Air Asia Singapore route

Letter
by Richard Teo

I wish to refer to the Malaysiakini article ‘Air Asia: Its like going to the Moon.’

Yes, Tony Fernandez and Air Asia has every right to be in a jubilant mood after having obtained the rights to fly the Kuala lumpur to Singapore route. After all its a gold mine route previously the monopoly of our MAS airline.

But why the sudden change of mind to give this lucrative route to Air Asia when the logical decision would be to allow the status quo to remain and let MAS reap the profits while it is on its path to recovery?

The answer can be found by referring to the ECM-Libra and the Avenue merger. Prior to the merger, Kallimullah and Khairy Jamalluddin (son-in Law of P.M) bought a block of shares in ECM-Libra and lo and behold one month later ECM-LIibra sealed the deal with the cash-rich Avenue merger. Of course someone at the Ministry of Finance had to approve the deal and guess
who? Continue reading “ECM-Libra/Avenue merger and approval of Air Asia Singapore route”

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Firefly and Subang

Letter
by Z. Ibrahim

It is said sometimes that there are only two categories of people in this world. Employers and employees, entrepreneurs and wage seekers, risk takers and non-risk takers.

Employees in general are content with salaries and allowances commensurate with their experience, qualifications and working hours.

Entrepreneurs however, take huge risks by actually starting a new entity or business which generally requires workers and capital outlay. Entrepreneurs are greatly respected in open markets such as the United States. Malaysia had a similar tradition which included the late Tan Sri Lim Goh Tong.

The long drawn out silent battle to acquire Subang as an air terminal between Air Asia and MAS was plain to everyone. Which carrier should the government support? Neither. Only the market must be allowed to determine who prevails or survives.

If Subang is to be changed again to an air terminal, every airline including both Air Asia and MAS must be given a go at it. To sneakily allow MAS’s Firefly to operate from Subang on the basis that its turbo-prop planes are environmentally friendly to residents around the airport is to encourage a lop-sided policy of quiet favoritism, possibly because the government has a share in MAS.

This would be sending the wrong signal to venture capitalists, entrepreneurs, investors and FDIs.This inequality may translate into businesses and capital running out of the country. Continue reading “Firefly and Subang”

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E-government to e-scam – Kong Choy should publicly justify e-Kesihatan

Transport Minister, Datuk Seri Chan Kong Choy should fully explain the second scandal since he became Transport Minister — the e-Kesihatan scandal which is also the latest example of e-government in Malaysia degenerating into e-scams.

The first scandal during Chan’s stewardship as Transport Minister is the RM4.6 billion Port Klang Free Zone (PKFZ) bailout scandal, for which a full and proper accounting has still to be furnished by him.

Although the Cabinet on Wednesday decided to postpone the eKesihatan health screening of commercial drivers to enable the Economic Planning Unit (EPU) to co-ordinate the implementation of the programme, what are exactly the implications of the Cabinet decision.

Does it mean that the RM450 million 15-year eKesihatan middleman concession to centralize the health screening of commercial drivers, scheduled to begin on Oct. 1, had been merely postponed with the monopoly position of Supremme Systems Sdn. Bhd. basically unaffected or could the whole concession monopoly be scrapped?

And in the latter, would Supremme Systems be compensated a substantial amount resulting in a “heads I will, tail you lose” situation for the company at the expense of the taxpayers, as had happened in the past like the Johore Baru crooked half-bridge cancellation, where the contractor Gerbang Perdana Sdn. Bhd had been paid compensation of RM257.4 million, although the government had earlier computed a RM100 million compensation!

Chan should make public the full details of the eKesihatan contract which had been signed between the Road Transport Department and Suprmme Systems Sdn. Bhd, whether the Transport Ministry had fully committed the government to compensate Supremme Systems for delays in implementing the eKesihatan scheme, like the postponement decided by the Cabinet on Wednesday.

After the shocking disclosures of pervasive mismanagement of public funds in the 2006 Auditor-General’s Report and the RM4.6 billion PKFZ bailout scandal caused by the Transport Minister unlawfully committing the government to stand guarantee for RM4 billion bonds issued by a private company developing the PKFZ, Malaysians are entitled to demand higher standards of accountability to avoid repetition of the same mistakes in the Transport Ministry and the continued mismanagement of public funds. Continue reading “E-government to e-scam – Kong Choy should publicly justify e-Kesihatan”

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Towards a More Equitable Highway Toll System

In January this year, the Government raised the toll fare for 5 privatised highways in the Klang Valley. The Bentong and Gombak toll on the Karak Highway was raised by 20% and 25% respectively. The 3 KESAS Highway toll was raised by 47%, while the Batu 9 and Batu 11 toll along the Grand Saga Highway was raised by 43% and 50% respectively. The highest increment however, was at the tolls along the Lebuhraya Damansara-Puchong (LDP), by 60%.

These 5 highways were constructed at a cost of RM4.13 billion. The toll rates have been raised excessively despite the fact that the Government has paid RM2.28 billion in compensation to date, as well as an additional RM2.59 billion over the next 5 years, or a combined total of RM4.86 billion. The compensation promised to date has already exceeded the construction cost of the highways by 18% or RM734 million.

As a further example, the total capital cost of construction of the LDP is estimated at RM1.327 billion inclusive of capitalised interest of RM142.3 million. However, the projected profit after tax (PAT) over 30 year concession period has been estimated at RM18.865 billion based on the agreement with the Barisan Nasional-led Government. The projected profit represents a 1,400% return on capital, which is excessive by any reasonable standards.

With the impending increase in toll rates for the North-South Highway, and in the light of the clear cut inequity in the concessionaire agreements, as well as in the overwhelming interest of the Malaysian public, the DAP proposes the renegotiation of all toll concessionaire contracts for Malaysian highways. Continue reading “Towards a More Equitable Highway Toll System”

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Liong Sik’s last act as Transport Minister on May 28, 2003 – unlawfully signing first of four “Letters of Support” for KDSB bonds resulting in RM4.6b PKFZ bailout scandal?

The Prime Minister-cum-Finance Minister, Datuk Seri Abdullah Ahmad Badawi began his 2008 budget speech reminding Malaysians of its significance and historic circumstances — on the occasion of the nation’s 50th Merdeka anniversary celebrations and the first Budget as the nation enters the second 50-year phase as an independent state.

To me, the 2008 budget was even more significant — as it was an acid test as to whether the Prime Minister was finally going to “walk the talk” of his National Integrity Plan and keep his pledge to Malaysians that he would lead a clean, incorruptible, accountable, transparent, trustworthy and responsible administration and that he would not countenance the culture of impunity among his Ministers and public officials — or whether he would break his final pledge that he would not approve mega-billion-ringgit bailout of “white-elephant” projects (as all his other pledges of good governance have already been broken).

I was very disappointed by Abdullah’s 2008 Budget, for he had failed this acid test.

There was not a word about the RM4.6 billion Port Klang Free Zone (PKFZ) bailout scandal — the largest financial scandal at the start of any Prime Minister in Malaysia, even bigger than the RM2.5 billion Bumiputra Malaysia Finance (BMF) scandal which led off the Mahathir premiership more than two decades ago.

Tun Dr. Mahathir had said at the time that the RM2.5 billion BMF scandal was a “heinous crime without criminals”. Are we having another bigger “heinous crime without criminals” in the form of the RM4.6 billion PKFZ scandal under the Abdullah administration?

Abdullah had failed as both Prime Minister and Finance Minister in not giving a full and satisfactory accounting of the government bailout of the RM4.6 billion Port Klang Free Zone (PKFZ) scandal to set an example of government accountability and financial integrity to all Ministers, Deputy Ministers and Parliamentary Secretaries.

This is because in the past two weeks, the Transport Minister, Datuk Chan Kong Choy (before he suddenly went on medical leave, sparking political speculation whether he is resigning from the Cabinet), the Deputy Finance Minister, Datuk Dr. Awang Adek bin Husin and the Parliamentary Secretary to the Finance Ministry, Datuk Seri Dr. Helmi bin Yahaya had been misleading Parliament and the nation about the true nature and character of the RM4.6 billion PKFZ bailout scandal. Continue reading “Liong Sik’s last act as Transport Minister on May 28, 2003 – unlawfully signing first of four “Letters of Support” for KDSB bonds resulting in RM4.6b PKFZ bailout scandal?”

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RM4.6 billion PKFZ bailout scandal – most improper for Nazri to tell PAC Chairman Shahrir to “shut up”

It was most improper and unwarranted for the Minister in the Prime Minister’s Department, Datuk Seri Nazri Aziz to tell Datuk Shahrir Abdul Samad to “shut up” about the Public Accounts Committee (PAC) investigation into the RM4.6 billion Port Klang Free Zone (PKFZ) bailout scandal especially when Nazri is an interested party, being a member of the Cabinet which decided on the bailout.

On Thursday, the PAC had a two-hour meeting on the PKFZ bailout scandal, with a briefing by the Port Klang Authority (PKA) general manager Datin Paduka O.C. Phang, who was accompanied by an accountant and administrative staff and Transport Ministry officials, including its secretary-general Datuk Zakaria Bahari and representatives from the finance, planning and port divisions.

After the two-hour meeting, Shahrir as PAC Chairman told the press that the PAC was “unsatisfied” with how the meeting went.

Shahrir said: “The problem with the Port Klang Free Zone is far bigger than what the papers have reported. Far too many questions were left unanswered.”

It was over Shahrir’s comments that Nazri blew his top yesterday, telling Sin Chew Daily that Shahrir should “shut up” on the ground that it was wrong to talk to the press before the end of the PAC investigation.

This was not the first time that Shahrir as PAC Chairman had made comments about ongoing PAC investigations in the past three years but Nazri had never voiced any objections in the past.

Why is Nazri so sensitive and high-strung now over the PAC investigation into the RM4.6 billion bailout scandal? Is it because Nazri has a vested interest, being an interested party as a Minister of the Cabinet which had approved the RM4.6 billion PKFZ bailout?

It is Nazri who should “shut up” about PAC investigation into the PKFZ scandal and not interfere with the independence of the PAC to carry out its tasks mandated by Parliament as the PAC is answerable to Parliament and not to Nazri, though he is Minister in charge of parliamentary affairs for the Cabinet. Continue reading “RM4.6 billion PKFZ bailout scandal – most improper for Nazri to tell PAC Chairman Shahrir to “shut up””

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RM4.6 billion PKFZ bailout scandal – let Abdullah justify it in the 2008 Budget tomorrow

When presenting the 2008 budget tomorrow, the Prime Minister-cum-Finance Minister, Datuk Seri Abdullah Ahmad Badawi should explain the full case for the government bailout of the RM4.6 billion Port Klang Free Zone (PKFZ) scandal to set an example of government accountability and financial integrity to all Ministers, Deputy Ministers and Parliamentary Secretaries.

This is because for the past two days, both the Deputy Finance Minister, Datuk Dr. Awang Adek bin Husin and the Parliamentary Secretary to the Finance Ministry, Datuk Seri Dr. Helmi bin Yahaya had been misleading Parliament and the nation about the true nature and character of the RM4.6 billion PKFZ bailout scandal.

In the 2007 supplementary estimates, the Finance Ministry asked for RM260 million for Port Klang Authority without giving any explanation as to its true purpose.

It was from my exchange with Helmi during the winding-up of the debate at the committee stage yesterday that it emerged that the RM260 million sum was the first amount of the RM4.6 billion government bailout for PKFZ, as beginning this year, the first annual payment of RM520 million for the RM4.6 billion bailout for the bonds raised by Kuala Dimensi Sdn Bhd — the PKFZ turkey contractor – has to be made.

It was also only after I had made persistent demand, declaring that this was information that Parliament and Malaysian taxpayers have right to access, that Helmi read out the schedule of repayments in the RM4.6 billion PKFZ bailout, viz:

2007 – RM510 million
2008 – RM660 million
2009 – RM660 million
2010 – RM772 million
2011 – RM487 million
2012 – RM733 million
2013 – RM170 million
2014 – RM170 million
2015 – RM170 million
2016 – RM170 million
2017 – RM179 million
Total – RM4,681 million

However, Helmi like Awang Adek in Parliament on Tuesday suffered from the denial syndrome and denied that this was a RM4.6 billion PKFZ bailout by the government. Both also refused to answer specific questions which I posed to them. Continue reading “RM4.6 billion PKFZ bailout scandal – let Abdullah justify it in the 2008 Budget tomorrow”

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RM4.6 billion PKFZ scandal – Hansard account

(From Hansard 4th September 2007 [unedited] on the RM4.6 billion Port Klang Free Zone scandal during the winding up of the debate on 2007 Supplementary Estimates by Deputy Finance Minister, Datuk Dr. Awang Adek)

Dato’ Dr. Awang Adek bin Hussin: Yang Berhormat, saya ingin meringkaskan cerita dan saya terus kepada perkara-perkara pokok. Yang Berhormat menimbulkan berbagai-bagai isu tetapi kalau diizinkan saya ingin cantumkan isu-isu Port Klang Free Zone ini kepada empat isu. Pertama, mengapakah pembelian tanah ini tidak dibuat melalui pengambilan balik tanah? Kan Yang Berhormat?

Keduanya, apakah status dan mengapakah Menteri mengeluarkan surat, tidak tahulah Yang Berhormat sebut letter of guarantee, tetapi kita sebut letter of support, surat sokongan. Ketiganya ialah mengenai soft loans, pinjaman ringan, pinjaman mudah. Keempatnya, kenapakah projek ini yang dulunya dianggap sebagai self finance dengan izin, tiba-tiba perlukan kepada pinjaman mudah. Boleh Yang Berhormat, empat itu? Ada lagi?

Tuan Lim Kit Siang [Ipoh Timor]: [Bercakap tanpa pembesar suara]

Dato’ Dr. Awang Adek bin Hussin: Macam mana build up pula, saya dah cakap empat tadi, dia setuju-setuju, dia masuk juga …

Timbalan Yang di-Pertua [Datuk Dr. Yusof bin Yacob]: Timbalan Menteri jawab sahajalah, jangan ada tawar-menawar ini, susah.

Dato’ Dr. Awang Adek bin Hussin: Tidak apalah, kita bagi peluang dia, nanti dia tidak puas hati, dia kacau lagi. Kita nak telus, bagi jelas. Kepong ok ya? Jangan kacau Kepong. Jadi pengambilan tanah, mengapa pengambilan tidak dilakukan secara pengambilan balik tanah. Yang Berhormat, mula-mula memang ada usaha untuk diambil tanah melalui pengambilan balik, land acquisition. Land acquisition ini boleh diambil melalui dua cara, satunya berdasarkan kepentingan awam. Biasanya kepentingan awam ini adalah untuk projek-projek sosial, hospital, universiti, ini projek ekonomi. Ekonomi yang besar yang mungkin boleh melibatkan keuntungan.

Keduanya ialah pengambilan balik tanah melalui projek ekonomilah iaitu yang keduaduanya tetapi yang ekonomi ini disyaratkan tidak ada sebelum ini development order, ini ada dalam undang-undang Land Acquisition Act. Sekiranya sudah ada development order maka pengambilan tanah atas dasar ekonomi ini tidak boleh dibuat. Jadi sebab itu timbul masalah sama ada ia boleh dibuat ataupun tidak. Apakah ia boleh dikategorikan sebagai pengambilan untuk kepentingan awam memenuhi projek-projek sosial, projek yang betul-betul perlu rakyat ataupun perlu diambil melalui pelaksanaan projek ekonomi. Malangnya pengambilan melalui projek ekonomi bersyarat dalam akta itu, tidak boleh dibuat sekiranya development order sudah dikeluarkan.

Jadi sebab inilah, maka ia mengambil masa. Pada tahun 2002 Kementerian Pengangkutan telah membawa kertas Kabinet, perbincangan dengan Kabinet. Kabinet bersetuju pada 2 Oktober 2002 supaya pembelian tanah ini dibuat. Ini bermakna ada persetujuan bahawa tanah ini dibeli dengan harga-harga tertentu berdasarkan usaha untuk mengambil balik tanah ini, ada isu-isu berbangkit yang boleh menimbulkan masalah, itu pertama. Keduanya, letter of support, surat. Surat ini sebenarnya bukan … Continue reading “RM4.6 billion PKFZ scandal – Hansard account”