Archive for category Transport
Road carnage – disappeared from Abdullah’s radar screen in his last 100 days as PM
Posted by Kit in Abdullah Ahmad Badawi, Najib Razak, Transport on Tuesday, 9 December 2008
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. Read the rest of this entry »
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. Read the rest of this entry »
RM4.6 billion PKFZ scandal – Chan Kong Choy still Minister-on-the-run
Posted by Kit in Good Governance, Parliament, PKFZ, Transport on Wednesday, 28 November 2007
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: Read the rest of this entry »
RM4.6 billion PKFZ scandal questions – why Kong Choy cannot give “yes or no” answers?
Posted by Kit in Parliament, PKFZ, Transport on Tuesday, 27 November 2007
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. Read the rest of this entry »
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: Read the rest of this entry »
RM4.6 billion Port Klang Free Zone scandal — why is the government on-the-run?
Posted by Kit in Good Governance, Transport on Monday, 12 November 2007
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. Read the rest of this entry »
ECM-Libra/Avenue merger and approval of Air Asia Singapore route
Posted by Kit in Good Governance, Letters, Transport on Wednesday, 7 November 2007
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? Read the rest of this entry »
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. Read the rest of this entry »
E-government to e-scam – Kong Choy should publicly justify e-Kesihatan
Posted by Kit in Good Governance, Health, Transport on Saturday, 22 September 2007
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. Read the rest of this entry »
Towards a More Equitable Highway Toll System
Posted by Kit in Parliament, Transport on Thursday, 13 September 2007
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. Read the rest of this entry »
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?
Posted by Kit in Good Governance, Parliament, Transport on Tuesday, 11 September 2007
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. Read the rest of this entry »
RM4.6 billion PKFZ bailout scandal – most improper for Nazri to tell PAC Chairman Shahrir to “shut up”
Posted by Kit in Good Governance, Parliament, Transport on Saturday, 8 September 2007
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. Read the rest of this entry »
RM4.6 billion PKFZ bailout scandal – let Abdullah justify it in the 2008 Budget tomorrow
Posted by Kit in Good Governance, Parliament, Transport on Thursday, 6 September 2007
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. Read the rest of this entry »
RM4.6 billion PKFZ scandal – Hansard account
Posted by Kit in Good Governance, Transport on Wednesday, 5 September 2007
(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 … Read the rest of this entry »
RM4.6 bil PKFZ bailout scandal – nobody accountable for two weeks when Kong Choy on medical leave?
Posted by Kit in Good Governance, Transport on Thursday, 30 August 2007
When Malaysians heard or read the news about the RM4.1 billion investment from the Gulf Co-operation Council (GCC) countries for the Iskandar Development Region (IDR) in Johore, their first thought would be that Malaysians themselves have this amount of money to spare if they do not have to be squandered in a bailout of the RM4.6 billion Port Klang Free Zone (PFZ) scandal.
Up to now, there has been no proper and full accountability as to how the PKFZ, touted as a feasible and self-financing project which would not require a single ringgit of public funds, has ended up as a RM4.6 billion burden of the taxpayers.
This is why the report today that the Transport Minister, Datuk Seri Chan Kong Choy has gone on medical leave for health reasons attracted more than its usual share of attention.
His press secretary said Chan has to go abroad for a medical check-up and consultation.
I wish Chan speedy recovery, although two questions jostle for answer:
Firstly, is Chan another example of the present crop of Cabinet Ministers who have no confidence in Malaysian specialists and medical expertise that one after another has to go overseas for medical treatment and consultation. This question is particularly poignant when the Health Minister is another MCA leader, Datuk Dr. Chua Soi Lek.
Secondly, does this mean that for a fortnight, no one from the Transport Ministry need to be responsible to give full accountability for the RM4.6 billion Port Klang Free Zone (PKFZ) bailout scandal.
Knowing that he had to go on medical leave for two weeks, Chan was being most irresponsible in failing to give a full and proper accounting of the RM4.6 billion PKFZ bailout scandal in his written answer to my question in Parliament on Tuesday.
In his answer, apart from making a bald claim that there was no fraud, irregularity or malpractice, Chan failed to address the specific issues which I had highlighted in my urgent motion on the PKFZ bailout scandal on Monday but which was rejected by the Speaker, Tan Sri Ramli Ngah as not complying withy the three prequisite requirements of being urgent, definite public importance. Read the rest of this entry »
RM4.6 billion PKFZ scandal – Liong Sik telling the truth or a pack of lies?
Posted by Kit in Good Governance, Parliament, Transport on Monday, 27 August 2007
I am very disappointed that my motion for an urgent debate of the RM4.6 billion Port Klang Free Zone (PKFZ) scandal and a government bailout has been denied, casting not only a dark shadow on the 50th Merdeka Anniversary celebrations on Friday by raising grave questions about good governance, an accountable and honest Cabinet and an effective “First-World Parliament”.
It would appear that no Barisan Nasional MP is prepared to take a principled stand demanding full parliamentary accountability of the RM4.6 billion PKFZ scandal and that there should be no government bail-out unless there is prior Parliamentary sanction, especially as the government had earlier been giving an assurance that the PKFZ was feasible and self-financing which would not require a single ringgit of government funding.
Although the rejection by the Speaker, Tan Sri Ramli Ngah of my urgent motion on the PKFZ is a setback in the campaign to hold the government to the National Integrity Plan launched by the Prime Minister, Datuk Seri Abdullah Ahmad Badawi, I will continue to demand full and proper accountability for the RM4.6 billion PKFZ scandal in the current budget meeting of Parliament.
Yesterday, former MCA President and Transport Minister, Tun Dr. Ling Liong Sik broke his silence on the RM4.6 billion Port Klang Free Zone (PKFZ) scandal which was initiated when he helmed the Transport Ministry but what he said raised the question whether Ling was telling the truth or just a pack of lies.
How can Ling hide his head under the sand and claim that the PKFZ plan to “emulate Dubai’s Jebel Ali Free Zone was a good strategic idea” when it has become a national calamity, which is the candidate for a RM4.6 billion bail-out — the biggest financial scandal for the start of any Prime Minister in the nation’s 50-year history?
Ling said yesterday that the intention of PKFZ was to copy Jebel Ali Free Zone, which had 4,500 factories supplying to the whole of the Gulf, by combining port trade with Jebel Ali and bring at least half the factories to PKFZ to supply to Asean.
After spawning the monster of a RM4.6 billion mega-financial scandal, what has PKFZ to show in terms of achieving the target of attracting 2,250 factories from Jebel Ali Free Zone to Port Klang? Has it achieved 10, five or even one per cent of this target so far? Read the rest of this entry »
Tun Razak would have recoiled in horror at RM4.6 billion Port Klang Free Zone scandal and bailout
Posted by Kit in Good Governance, Transport on Sunday, 26 August 2007
A marathon 50-hour forum was told yesterday why Malaysia’s second prime minister, the late Tun Abdul Razak Hussein, had called off a plan to build a swimming pool at his official residence.
Razak had felt that the estimated RM60,000 to be spent on the construction of the swimming pool could be better used in building three rural health clinics.
This episode from the past was related by Datuk Mohd Annuar Zaini, chairman of the Malaysian National News Agency, Bernama, at the Merdeka Forum “Sembang-Sembang Kopi `O’ Nasi Lemak” organised by the Culture, Arts and Heritage Ministry and the Federation of National Writers Associations of Malaysia (Gapena) in kuala Lumpur.
There can be no doubt that Razak who cancelled a plan to build the RM60,000 swimming pool at his official residence, would have recoiled in horror at the RM4.6 billion Port Klang Free Zone (PKFZ) scandal and any government bailout when the money could be better used for the poor of all races.
The second Prime Minister would have been utterly shocked at the mentality of the present batch of Cabinet Ministers in general and the Transport Minister in particular who clearly had no notion whatsoever about responsibility, accountability, transparency, integrity and good governance as there had been no proper explanation whether to the Malaysian public or to Parliament as to how such a RM4.6 billion PKFZ scandal could have been allowed to happen when the government had been assured right from the beginning that the PKFZ was a feasible and self-financing project which would not require a single ringgit of public funding.
I have no doubt that if the RM4.6 billion PKFZ scandal had happened during Razak’s premiership, the then Transport Minister would have no choice but to tender his resignation, especially when it was the Transport Minister’s unlawful “letters of support” which had been used as government guarantees to induce investors to subscribe to the RM4.6 billion bonds for the PKFZ project.
A quarter of a century ago, the premiership of the fourth Prime Minister, Tun Dr. Mahathir Mohamad, was marred by the then biggest financial scandal, the RM2.5 billion Bumiputra Malaysia Finance (BMF) scandal which Mahathir admitted was “a heinous crime without criminals”.
Are Malaysians to celebrate the 50th Merdeka anniversary in an increasingly somber mood with an even bigger “heinous crime without criminals” than the RM2.5 billion BMF scandal 25 years ago – the RM4.6 billion PKFZ scandal?
It was reported by foreign agencies on Friday that at a meeting between the Prime Minister, Datuk Seri Abdullah Ahmad Badawi and the Transport Minister, Datuk Seri Chan Kong Choy late last Thursday, the Prime Minister gave the green-light for a RM4.6 billion soft-loan to bailout the PKFZ. Read the rest of this entry »
RM4.6b PKFZ scandal – Kong Choy should seriously consider resignation
Posted by Kit in Constitution, Good Governance, Transport on Saturday, 25 August 2007
The reasons why Transport Minister, Datuk Seri Chan Kong Choy chickened out from personally appearing at the Transport Ministry press conference on the Port Klang Free Zone (PKFZ) on Thursday seem to have become clearer — that he not only wanted to avoid hard and embarrassing questions about his role and responsibility in the RM4.6 billion PKFZ scandal, but he also wanted to evade questioning on the Transport Ministry’s five-page statement on PKFZ.
This is because more and more questions are surfacing over the accuracy and correctness of the statement, which strangely was issued anonymously, without the Transport Minister or anyone of his deputies daring to put their name on it!
Some of these questions include:
Firstly, was the Transport Ministry right in putting the whole blame of the ballooning of the cost of the PKFZ from RM1.1 billion to RM4.6 billion on Jebel Ali Free Zone Authority (Jafza), the former PKFZ operator?
Was Jafza responsible for the scandalous price of RM1.8 billion or RM25 psf paid by Port Klang Authority (PKA) for the 1,000 acres for the PKFZ from Kuala Dimensi Sdn. Bhd which had four years earlier bought it for RM95 million or RM3 psf?
The Transport Ministry has failed to explain why it insisted on paying Kuala Dimensi Sdn. Bhd. RM25 psf in the teeth of opposition of the Finance Ministry and the Attorney-General’s chambers which proposed that the land be acquired compulsorily at the market value of RM10 psf.
The Transport Ministry said the PKA’s purchase price was reached because of work done on the site, including land reclamation, drainage, construction of access roads, installation of street lights, water services and payment to various utility agencies.
If the recommendations of the Finance Ministry and the Attorney-General’s Chambers had been followed, the price of the 1,000 acres for the PKFZ would be RM720 million instead of the exorbitant RM1.8 billion — an astronomical difference of RM1.1 billion.
Is Chan really justifying the RM1.1 billion difference in the land price on the ground of “work done on the site, including land reclamation, drainage, construction of access roads, installation of street lights, water services and payment to various utility agencies”?
Let Chan make public the costs of such “work done”, whether it was more than RM10 million or RM20 million — when the difference is the gargantuan sum of RM1.1 billion. Read the rest of this entry »
Kong Choy should own up – how many of the 4 unlawful “letters of support” for RM4.6 billion PKFZ bonds were signed by him
Posted by Kit in Good Governance, Transport on Friday, 24 August 2007
Transport Minister, Datuk Seri Chan Kong Choy chickened out of the special press conference yesterday on the RM4.6 billion Port Klang Free Zone (PKFZ) scandal, which was only attended by his press secretary.
Is this because Chan is aware that he would have to face many difficult and embarrassing questions about the RM4.6 billion PKFZ scandal which he would not be able to answer satisfactorily and he decided that the better of valour was to avoid the media altogether on the issue?
Chan must own up – how many of the four “Letters of Support” for Kuala Dimensi Sdn. Bhd.’s RM4.6 billion bonds for PKFZ project was signed by him as Transport Minister and why he should not be censured in Parliament for the RM4.6 billion PKFZ scandal in giving such unlawful government guarantees without authority from the Finance Ministry resulting in the AAA rating from the Malaysian Rating Corporation Bhd — and now given as the main reason why the government has to undertake the bailout of the RM4.6 billion PKFZ.
Kuala Dimensi is not only the company which sold the 1,000 acres of land for the PKFZ to Port Klang Authority (PKA) at RM25 per sq ft or some 20 times the cost of its acquisition of the land four years earlier in 1999 at RM3 per sq ft but also the turnkey contractor for RM1.85 billion development of the PKFZ.
The press conference by the PKFZ business development general manager Chia Kon Leong had failed to answer the many pertinent questions concerning accountability, transparency and integrity of the RM4.6 billion PKFZ as well as its feasibility and viability.
Chia said that PKFZ aims to be self-sustaining in 2012 when it is targeted to have an 80 per cent occupancy rate, equivalent to housing between 650 to 700 companies, when it would generate RM80 million annually.
The PKFZ project was sold by Kuala Dimensi to the government on the understanding and undertaking that it would be feasible, self-financing and would not need a single ringgit of public funding from the very beginning.
At the rate of generating RM80 million revenue annually from 2012, it would take PKFZ 57.5 years to recover the RM4.6 billion investments or to be more correct “mis-investments” — i.e. till 2070! Read the rest of this entry »
Urgent Monday motion – no RM4.6 bil PKFZ bailout without full parliamentary accountability and prior sanction
Posted by Kit in Good Governance, Parliament, Transport on Thursday, 23 August 2007
I have given notice to the Speaker of Parliament, Tan Sri Ramli Ngah to move an urgent motion when the Dewan Rakyat reconvenes on Monday — that there should be no bail-out of the RM4.6 billion Port Klang Free Zone (PKFZ) scandal unless there is full parliamentary accountability and prior Parliamentary sanction.
In my notice, I pointed out that there have so far been no proper accountability to Parliament whether by the Transport Minister or the Finance Minister about the RM4.6 billion PKFZ scandal despite the exposes in the public domain, such as:
- (i) 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;
(ii) mismanagement resulting in the pull-out of Jebel Ali Free Trade Zone (Jafza) from the project, which could become a “white elephant”; and
(iii) 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 if there is 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 — set to be the biggest financial scandal at the beginning of any Prime Minister.
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