PKFZ Rip-off – first 3 questions to OTK

The Prime Minister, Datuk Seri Najib Razak has directed Transport Minister, Datuk Seri Ong Tee Keat to respond to queries involving the audit report on the Port Klang Free Zone (PKFZ).

He said Ong would provide the necessary information on the report by PricewaterhouseCoopers (PwC) released on Thursday, adding:

“I have asked Datuk Seri Ong Tee Keat to provide answers on every question raised by any party on the audit report.”

Speaking to reporters after the Umno supreme council meeting in Kuala Lumpur yesterday, Najib said Ong will provide the explanation to all questions about the PwC report on the PKFZ.

Acting on Najib’s invitation, I am asking my first three questions about Malaysia’s latest “Scandal of Scandals” – the RM12.5 billion Port Klang Free Zone (PKFZ) rip-off.

1. Why did Ong break his public pledge made in his first month as Transport Minister on 7th April 2008 that he would “tell all” about the PKFZ scandal, as “the rakyat has a right to know the truth” by restricting the terms of reference of the PricewaterhouseCooper audit inquiry to “a position review” instead of the wide-ranging and all-out investigation into PKFZ scandal?

PwC report had specifically drawn attention to its very narrow and restricted term of reference, when it stated:

“The report is limited in scope. It is restricted to a position review of Port Klang Free Zone and Port Klang Free Zone Sdn. Bhd as set out in our Letter of Engagement dated 8th October 2008. We were not asked to and we have not advised on any strategy, valuation, legal implications, tax, operational effectiveness, staff competencies or process improvement. No investigation to detect any wrongdoing or audit to form an opinion on any financial information, including any forecasts and projections, has been undertaken.” (p.1)

Can Ong explain why he had decided on such a limited and restricted term of reference of the PwC study, deliberately excluding from inquiry the conduct or misconduct of previous Transport Ministers, Tun Dr. Ling Liong Sik and Datuk Seri Chan Kong Choy in the PKFZ scandal, as well as not asking PwC to detect any wrong doing or render advice on “any strategy, valuation, legal implications, tax, operational effectiveness, staff competencies or process improvement”?

2. Does Ong agree that the PwC report has exposed the PKFZ scandal as not just a “can of worms” but a “swamp of crocodiles” snowballing from a RM1.8 billion scandal in 2002 under Datuk Seri Dr. Ling Liong Sik as Transport Minister, more than doubling to RM4.6 billion under Datuk Seri Chan Kong Choy as Transport Minister and now mushrooming into the astronomical figure of a RM12.5 billion scandal under Ong’s watch as Transport Minister? When I went through the report and the three-and-half-inch high 20 appendices, my most vivid image was of “RIP-OFF” and I felt violated as a Malaysian citizen and Parliamentarian. Does Ong have such a feeling?

3. Does Ong agree that the RM12.5 billion PKFZ rip-off is a heinous crime and it must not be allowed to be another but bigger version of the RM2.5 billion Bumiputra Malaysia Finance scandal which the Prime Minister, Datuk Seri Dr. Mahathir Mohamad said 25 years ago as a “heinous crime but without criminals”?

RM12.5 billion is not chicken-feed. It is equivalent to five RM2.5 billion BMF scandals. RM12.5 billion can be used to build four Penang bridges, 25 universities at RM500 million each; 125 hospitals at RM100 million each; 1,250 schools at RM10 million each; 312,500 low-cost houses at RM40,000 each; declare amnesty from collecting assessment for 13 years for Selangor state or 45 years for Penang state; or give everyone of the 27 million Malaysians regardless of age a payout of RM338!

In fact it is like striking a RM1 Million price lottery each and every month non stop for the next 1,041 years!

What is Ong doing to bring to book all those responsible for the RM12.5 billion PKFZ rip-off, whether politicians named like MCA Deputy Finance Minister, Chor Chee Heung and Semanta state assemblyperson Abdul Rahman Palil or those unnamed like Liong Sik, Kong Choy or BBC Chairman Tiong King Sing..

Najib has kicked the ball to Ong. I hope Ong will not kick to ball to somebody else and make the Prime Minister look foolish by not answering all queries about the PwC report on the PKFZ scandal.

(Media Conference in Penang on Saturday, 30th May 2009)

  1. #1 by lee wee tak_ on Saturday, 30 May 2009 - 1:09 pm

    Najib passes the Perak issue to Zambry & the Sultan

    Najib passes the PKFTZ issue to Ong TK

    One of the greatest passer in history, move over Iniesta, Alonso and David Beckham!

  2. #2 by Yee Siew Wah on Saturday, 30 May 2009 - 1:39 pm

    Well, this is malaysian football la. It has gone down to so so low….
    I pass to u and u pass to me. It will go on and on in circles. At the end of the day, no answers and explanations to all the scandals in PKFZ from all these clowns.
    Forget about these so called component parties like MCA/MIC/Gerakan etc….They just open their big fat mouth but never match their words with real actions.
    Those “anacondas” who are involved in the PKFZ scandals are now happily enjoying their ill gotten $$$$$$$$$$$$$….. from the poor rakyat. For them, who cares a damn la.
    Uncle Lim, please do all you can to expose all these “anacondas” at all cost. We do not want any fall guys and ikan bilis.

  3. #3 by -ec- on Saturday, 30 May 2009 - 1:41 pm

    i guess i might not see some acts of harakiri, but are we seeing some by-elections coming soon? nobody dies this time.

    shame on those elected representatives who are/were involved in this scandal! we really need to know where all this money has gone to. to whose bank account? masuk whose pocket? who benefited from this scandal?

  4. #4 by k1980 on Saturday, 30 May 2009 - 1:56 pm

    In Sri Lanka, if a Tamil student wanted to go to University for Eng degree he/she have to get 3.8 GPA at the same time a Sinhala student who gets a GPA 2.2 goes to the same University.


    The NEP came here from Sri Lanka or the NEP went to Sri Lanka from here?

  5. #5 by YK Leong on Saturday, 30 May 2009 - 2:00 pm

    LKS: Can you answer my 3 questions as directed by Najib?
    OTK: How to answer your 3 questions lah, brother Kit Siang?
    LKS: Don’t try to kick the ball back to Najib just like on the release of the report.
    OTK: C4 (see see in Hokkien).
    LKS: What?
    OTK: I will better resign and let you answer back your 3 questions.
    The End………………………………………..

  6. #6 by ALLAN THAM on Saturday, 30 May 2009 - 2:16 pm

    Hi Kit, PWC is a professional firms earning big profit by providing auditing services and other consultancy services. These are their rice bowl. On the other hand PWC will not be so stupid to be drawn into an assignment to investigate the wrong doing in this mother of scandal no even with fee up to millions. As auditors they will sure restricted to limited term of references in this audit.

    You should ask for a royal commission to look into this matter. OTK is smart enough because he has LEE HWA BENG WHO IS A TRAINED auditors himself to engage PWC to do a mere lip service audit to please you and all others.

    PWC report is of limited use as they will never dare to touch on those sensitive issues.

    After saying that, MACC should be the best authority to do the investigation, but unfortunately MACC is just another running kou of BN. So we can not really do anything about it. Unless and until you can request for a royal commission to check on it, which again is almost impossible.

    What ever it is, PKFZ is the price that the people have to pay for their own stupidity of keep voting in these bunch of crocodiles.

    My guess is OTK will not surrender himself as what he has say what he sis next will be for the people? I doubt it. If he is sincere he should press for full disclosure and if he can not success by mere resigning will good enough to undone the damage done by this mother of the scandal.

    It was my conviction that what ever the outcome it too be. This evil project is from the day one conceptualized with the upmost eveil intention to milk what they can out of the tax payer moneys.

    BN are make out of many component parties and each party need money to keep them loyal, and this PKFZ was meant for MCA, and of course a long the line they can’t go al to MCA, SO SOME GUYS FROM OTHER components parties come along to take a bite on the cherry.

    Malaysian people have to learn and have to awaken early before your bones disappear from being swallow by all these crooks.

  7. #7 by ktteokt on Saturday, 30 May 2009 - 2:24 pm

    Passing the ball? Why NAJIS looks more like a FOOTBALL PLAYER than the PM! Better ask him to join FAM and elect him President there!!!!!!

  8. #8 by tsn on Saturday, 30 May 2009 - 2:30 pm

    Allan Tham,

    Please make sure the Royal Commission, the Royalty is not from Perak, otherwise big mess is on the Kuala Kangsar highway.

  9. #9 by tsn on Saturday, 30 May 2009 - 2:31 pm

    Hi ! …..Again !

  10. #10 by gofortruth on Saturday, 30 May 2009 - 2:33 pm

    BN must understand that when they stand as a government, they are stewards to all resources of our nation and as such must be deligent at all time.
    In view of the magnitude of the amount involved in this PKFZ fiasco and in the presence of much suspected in manupulation & cheatings, any reasonable thinking man would expect a thorough audit to be conducted.The limited scope with restricted terms of this audit by PwC & the ‘delay’ to make it public speaks volume of their ill intention to hide “things” under the carpet.
    Najib is conviniently using OTK as a shield instead of behaving & acting like the leader of the stewards.Sigh!
    All said, this audit report has unearthed “weaknesses”, and therefore a FULL AUDIT must follow suit to dig to the bottom, to leave no stone unturned. A royal commission should be set up immediatedly to follow through the case instead of using public perceived UMNO’s agent – MACC.

  11. #11 by ALLAN THAM on Saturday, 30 May 2009 - 2:50 pm

    In the statutory auditing it was a golden rule that say that auditor is not blood hood and their findings are not targeting at finding the wrongs doings as the duties of proper management was purely on the BOD. So thing with PWC term of references. Before they take up this assignment they have to agreed upon the exact term of reference and scope of works, and their and responsibilities. So their report while may have many interesting facts but they cannot comments whether what have been done was right or wrong. Take for eg, in PWC report they comment that KDSB “may” have overcharged PKA interest, and at the same time they also advise PKA to seek legal advise on what they have just say. Now you see, PWC as auditors they will comments but they NEVER commit what they say is YES/ OR NO. You can not blame them as they are professional earning money by giving comments and advise after which you still need further advise from expert from the specific filed.
    That what I say, OTK is a smart fellow to engage a commercial investigator who has no tooth to bit but have the mouth to kiss and take their fat fee from you. This service was merely to please you opposition and try to quiet you people for a while, and hopefully with the short memory of Malaysian, not long into the future every thing will be gone with the wind.
    Put it in another way, look at LEE HWA BENG and the MACC officer handling over of PWC ceremony? This donkey Lee purpose look into the camera and give his broad smile a seem the world did not know that he has hand over the PWC report to MACC for further action and investigations?
    Now, if you folks read the SUN paper, I am sure you must read about PKFZ by no other than Mr. NADES. Nades has written with not less detail as compare with PWC report, except certain figures in details. If BN has the sincerity to books the crooks MACC has long ago go into action, just like AMINAH case in the Penanti or the Selangor MB car and cow issues.
    We have to be very realistic with current political scenario. BN never has the will to admit and take action by admitting the mistaken they have done, simply by doing so that is alike after digging the grave and jump themselves into the grave yard. Do you think they will so stupid ? Looking at what has happened in Perak, and other happenings now? Do you think they will admit that easily? Knowing that all others included Police, Judges and MACC are solidly behind them. Even the so call government servant who suppose to serve the master of the day, that they should follow procedures but no the comment of the politic also behind them?

  12. #12 by sightseeing on Saturday, 30 May 2009 - 4:19 pm

    I see so many of you requesting for a royal commission of inquiry. What happen to the Royal Commission report on VK Lingam? It is useless and it only benefits those appointed commissioners who are being paid fatly. This BN government has been rotting since day one beginning 52 years ago and the rot is accelerating at an alarming rate. The rot has spread to all government institutions including the judiciary, AG, PDRM, MACC and even the royal family is not immune. UMNO is digging it own grave everyday with the help all these rotting government institutions. I am not a fan of modern day prophecy but I hope for once the prophecy RAHMAN will be fulfilled. Najib is the last UMNO PM.

  13. #13 by taiking on Saturday, 30 May 2009 - 5:45 pm

    And how on earth can they claim that they care for the country? You dont make claims like that and at the same time pump the country dry and cause the rest of us to fight and quarrel with each other for crumbs and leftover. So get out. I say. I dont need such government.

  14. #14 by taiking on Saturday, 30 May 2009 - 6:05 pm

    Terms of reference expressly exclude “detection of wrongdoing”? WTF man. Why bother to investigate.

  15. #15 by Ipoh Cake House on Saturday, 30 May 2009 - 7:02 pm

    hi pals..
    somehow after reading thru alots of news regarding PKFZ and the report..i’m still curious on few points..
    i strongly believe that OTK is very ‘vokal and brave’ leader!!KONONNYA..
    i do believe my pal ALLAN THAM is more suitable to take his place..
    ALLAN even suitable to be YB and can take over our respected YB Lim..-: Allan can be listed to be one of the royal commision..i hope YB Lim might help in this as ALLAN is really good player in this game..
    anyway friends do u guys study clearly about PKFZ and the report.?there r several loopholes..
    i wish to ask OTK about the report..
    1) what is the purpose to release the report.??
    to let rakyat see what was happening..??kononnya..
    2) the report seems like to insult the interest of other party??
    prejudice among the leaders??
    3) released the report to show that he is brave enuf and good leader??if he dare to release the report, why must released under few conditions.??what r u worry OTK to release the report openly if the truth is really the truth..

    regarding the 15 years interest..why cant the government pay the lumpsum of payment to the said developer or owner..the cost may not exceed drag it to 15 years..PKA get something??kuih manis..LHB and OTK get something like sweet too..
    i’m curious..
    somehow i really tired of seeing such thing happened..
    i wish YB Lim and pals may try not to do such criticizing we really let the foreign investors loss confidence to our country..
    why not try to develope the project once we be the government one day..we will be one day if the rakyat have the faith on us..
    why r we destroying our future..we can perform thru professionalism and accountability not thru the criticising..we might criticise in order to bring them to the right pace but not the way always lead the rakyat to negative aspect just to gain vote..hopefully YB Lim might think smth on my opinion..i hope my pals like ALLAN, k1980, YK L & etc might take initiative to show our professionalism to rakyat..
    if we can perform rakyat will surely give us chance..-:

  16. #16 by Joshua on Saturday, 30 May 2009 - 7:47 pm

    Don’t you know whenever an iguana eats a LIVE chicken, a ‘v’ shape would be carved on its tail.
    I think we all know the nation has many such scandals in 52/46 years of RM30 trillions and the tail of BN =Be eNd is very long like a ‘dragon’ and this PKFZ would just make another ‘v’ and it goes on unless the people puts a stop to the rotten system like the snake is caught and slaughtered for special soup… end of cerita.

    who want this bn soup?

  17. #17 by oct on Saturday, 30 May 2009 - 9:49 pm

    All audit reports have drafts. These drafts are discussed with senior management before the final audit report is prepared. The management may ask the auditors to rephrase them if it doesn’t sound right. So what we see here is an audit report that has been agreed upon by the management of PKA and PWC else this audit report will not appear at all. So it is a bit of sandiwara here.

    Bet you in the end no one is implicated. Everyone claims it is done outside their appointment and/or claim ignorance. You may have a RC but what good does it when MACC and/or Polis doesn’t want to take action. Just follow the Lingam case and you will know what I mean. Those implicated by the RC are found not guilty and merely informed through Parliament. This case will take the same path. This will be done before the next GE so that if BN lose, none of them will be prosecuted as you can’t be prosecuted for the same offence.

    BN will dare not charge any of these three as if they are found guilty, there will be by-election. BN can’t afford to have by-election knowing that they will lose. Look at Zakaria and Toyol. No action even there are enough evidence for all Joe Public to see. Zakaria was a good man as said by our sleepy Pee M. So no need to take action.

    All we can hope is that by the next GE, these PKA cases are not stamped NFA so that when PR takes over, they can pursue it to the end.

  18. #18 by Godfather on Saturday, 30 May 2009 - 9:54 pm

    It would have been easy to get someone like PwC or Knoll Associates to go after the money trail – who gets what, when and why. Instead we are looking at a “position review” which is like looking at a half dead patient and telling us what it will take to revive the patient – when it should be an analysis of why the patient was half dead and who caused the patient to be half dead.

    The future generations of Malaysians will be looking at an autopsy of a dead patient, and those criminally liable would have disappeared into thin air.

  19. #19 by Mist on Sunday, 31 May 2009 - 12:53 am

    I deal with shit everyday as I am a worm farmer. The shit is great for growing vegetables, plant, fruits etc and the best part about it is that it doesn’t stink. It is actually very healthy material with a lot of benefitial microbes.

    LKS, I really have sympathy for you. You have to deal with shit everyday that stinks to high heavens. OTK is now claiming that he did not set up the term of reference. We may not be able to see the bullshit but it certainly smells.

    Take care of yourself, your panda eyes are getting larger by the day. Do see a chinese physician to help you with your liver (panda eyes is a result of bad liver function).

  20. #20 by Jason Ng on Sunday, 31 May 2009 - 4:05 am

    sorry, guys. looks like our hard-earned tax money will be ‘swallowed’ by some people. only this time the figure is gigantic. anybody knows when we will have the next general election? do something, guys. it’s pretty obvious that the project was some kinda project for certain people to get darn rich in the shortest time, ‘project cepat kaya’.

  21. #21 by johnnypok on Sunday, 31 May 2009 - 5:36 am

    Passing the ball, finger-pointing, exposing more scandals, police continue to arrest people for wearing black, for lighting candles and for calling Altantuya, more by-elections, limit maximum number of subjects for SPM, all these shits will soon bury the new PM and send him to hell.

  22. #22 by TomThumb on Monday, 1 June 2009 - 4:38 am

    hello ipoh cake house. i thinik you got the wrong blog.

  23. #23 by blablowbla on Monday, 1 June 2009 - 8:36 am

    again,we hear a very familiar tune n tone here:we will engage foreign financial institutions or turn-key experts to assist ……..

    it happenned to MAS,PROTON,TNB n many gomen GLCs before,the bottom line is,isnt it an adding salt onto wounds kind of thing n perhaps,still offer a chance for them to pay bigger bills to these foreign expertise n scandal it for a last time?

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