My three questions (No.73 to No. 75 on the 25th day in the current series) to Transport Minister Datuk Seri Ong Tee Keat on the RM12.5 billion Port Klang Free Zone (PKFZ) scandal today are:
Question No. 1: Port Klang Authority (PKA) Chairman Datuk Lee Hwa Beng made a very revealing and incriminating admission when he came to the defence of the Transport Minister, with reference to a letter by Ong to the Prime Minister dated May 10, 2008 after it surfaced on the Internet.
According to the New Straits Times, Lee clarified that the letter on RM1.2 billion variation order by the PKFZ turnkey developer, Kuala Dimensi Sdn. Bhd (KDSB) was not Ong’s request for more money to be approved but merely a relay of the PKA board’s decision (that they needed more money) to the prime minister.
“The letter from the transport minister dated May 10, 2008 to the then prime minister was to inform the latter that the PKA board had already deliberated and approved in February 2008, the final costs of the main development agreement of the contract with the developer.”
Lee said that the PricewaterhouseCoopers audit report did not mention the May 10, 2008 letter because the issue was not with the letter but rather the PKA board’s way of deliberating on agreements.
Lee distanced himself from the way the PKA Board deliberated the agreements and approved KDSB’s RM1.2 billion variation order by declaring:
“I wish to make it clear that I was not on the PKA board in February 2008 when it wrote to the transport minister asking for the RM1.2 billion”.
Lee is right that he was not the PKA Chairman when the PKA Board approved KDBS’s RM1.2 billion PKFZ variation order in February 2008. Who was the PKA Chairman when the PKA Board approved the RM1.2 billion variation order, which was 21% higher than the original estimate of RM1 billion?
In actual fact, KDSB also claimed professional fees of RM121.592 million calculated as a single 10% of the final amount of RM1.216 billion variation order, although this was not stipulated in the PKFZ development contract, resulting the final development cost to be increased by 33%, from the original estimated sum of RM1 billion to RM1.337 billion.
The PKA Chairman in February 2008 is none other than the present MCA Deputy Finance Minister, Datuk Chor Chee Heung.
My first question is why Ong continue to support Chor to evade and avoid responsibility and accountability with the latter’s stance that he had done nothing wrong or improper and need not resign or be suspended as Deputy Finance Minister?
Question No. 2: In his 40-minute media conference in the Parliament lobby yesterday after his 8-minute Ministerial non-statement, Ong denied that his letter dated May 10, 2008 to the Prime Minister was to ask for approval for KDSB’s RM1.2 billion variation order.
This is what he said, as reported by another New Straits Times report:
“There is no need to approve the RM1.2 billion since it was part of the RM4.3 billion soft loan granted by Finance Ministry to PKFZ and approved in 2007.
“It was a decision made before my tenure as transport minister. The question of my asking for extra funds does not arise.”
My second question is how this claim of his tallies with the last paragraph of his letter to the Prime Minister dated 10th May 2008, which read:
“6. Oleh yang demikian, saya pohon pertimbangan serta kelulusan YAB Datuk Seri ke atas perkara seperti tersebut di perenggan 3(i) dan 4.”
Perenggan 3(i) and (4) referred to KDSB’s RM1.2 billion variation order.
Does Ong agree that he has been caught red-handed telling an untruth on the PKFZ scandal?
Question 3: I said yesterday that I would move a motion to refer Ong to the Committee of Privileges if he does not apologise within 24 hours for violating Standing Order 36(12) in deliberately misleading the House when he said that the Cabinet, on Oct. 2, 2002, made the decision to allow the Port Klang Authority (PKA) to purchase 1,000 acres of land for RM1.08 billion at RM25 psf based on the position of the Selangor state government that the land could not be acquired under Section 3(1)(a) of the Land Acquisition Act 1960 because PKFZ was not a public project.
This was because Ong had not referred to the Cabinet decision three weeks later on Oct. 23, 2002, that the land should be acquired by the Transport Ministry through land acquisition under Section 3(1)(a) of the Land Acqusition Act at the price of RM10.16 psf.
To be fair to Ong, I am extending the 24-hour notice to 48 hours before filing a motion to refer him to the Committee of Privileges. Is he prepared to come clean and admit that he had misled the House and had not given a full, proper and accurate account of the Cabinet decisions over the years on the PKFZ project?
#1 by k1980 on Tuesday, 23 June 2009 - 10:45 am
For telling untruths, Ong will get 100/100 in his KPI evaluation report. Whereas for seeking the truth, YB LKS will get a 0/100 for his KPI. This is how 1Malaysia works.
#2 by cintanegara on Tuesday, 23 June 2009 - 10:49 am
I can’t count the number of times I’ve read about this…same story (probably no other story to tell)…different flavor….blended so well as if it looks truly authentic…..Perhaps, CM Mentor must put the Chapter to make it more interesting and thrilling…..
#3 by tsn on Tuesday, 23 June 2009 - 11:15 am
OKT, only resignation letter can spare you from public humiliation & sleepless nights. Tomorrow, sharp at 8.30am, walk in Rosmah office and plonk your weightless letter. The way you handle this scandal is evapoarating the little pride remaining in MCA.
#4 by tsn on Tuesday, 23 June 2009 - 11:28 am
cintanegara,
What talking you? How could we forget this story before problems are solved, culprits are exposed and faced the music, financial bleeding halts. You call yourself a patriot, better call yourself cintan mee, at least it offers some utility.
#5 by the reds on Tuesday, 23 June 2009 - 11:56 am
OTK knows it would be a disaster for MCA, if he admit he had misled the House. I am sure OTK will twist and turn the fact and further mislead the whole Malaysia! MCA works in this way!
It is so embarassing that Alor Setar has such MP like Chor! Suspend him until he is clear from the scandals! We will reject Chor next GE if he dare to contest in Alor Setar!
#6 by Onlooker Politics on Tuesday, 23 June 2009 - 12:19 pm
“There is no need to approve the RM1.2 billion since it was part of the RM4.3 billion soft loan granted by Finance Ministry to PKFZ and approved in 2007.
“It was a decision made before my tenure as transport minister. The question of my asking for extra funds does not arise.” (Ong Tee Keat)
The above comments made by Ong Tee Keat only indicated that Ong was trying to explain himself off from the requirement as a Transport Minister to bear the responsibility of overseeing and checking on how PKA squandered its money on a financially infeasible PKFZ project.
If Ong Tee Keat knew that RM4.3 billion soft loan had already been approved by MOF to PKFZ project in 2007, then why did he still need to bound himself so low in order to write to the Prime Minister for begging the release of money? Is Ong Tee Keat serving the Malaysian people or is he just serving the interest of Kuala Dimensi Sdn Bhd which is 70% owned by the chairman of Barisan Nasional Parliamentary Backbenchers’ Club.
Furthermore, if a soft loan had already been approved by MOF, then why did Ong Tee Keat need to spend time in his capacity as the Transport Minister to write a demand latter to the Prime Minister on behalf of PKA for release of the soft loan? Is the MOF really having imminent cash flow liquidity problem to the extent that an approved soft loan grant has to be delayed for payment even after falling due simply because it has insufficient fund in its bank account?
Is Barisan Nasional Minister of Finance hiding some very fishy things from being made known to the public?
#7 by rabbit on Tuesday, 23 June 2009 - 12:25 pm
hmmm what will happen next? OTK sure got backup… PM will voice up soon. let see how. Bro LKS make sure your cage is big enough to catch this old fox. All Dap members please help….
#8 by thinkfirst on Tuesday, 23 June 2009 - 12:36 pm
For question 2, isn’t it clear as daylight that OTK was relaying the board’s decision that the numbers are to be the the final figure for the agreement? The approval sought was on the final figure. Not asking for 1.2 billion more, which is what you are trying to mislead your readers. Learn to read la old man.
For question 3, obviously you knew the former deputy finance minister had told you in parliament that a cabinet decision in nov. 2002 had overturned the decision on oct. 23. So what’s your excuse? Senility or habitual compulsive lying?
No wonder people don’t want to answer your stupid questions!
#9 by -ec- on Tuesday, 23 June 2009 - 12:40 pm
i wonder if there is any legal procedure to bring all those involved in the scandal to the court? they have to the exposed and face the music.
whether they are present or previous cabinet ministers or mps shall not shield them from corruption and mismanaging the taxpayer money and resources.
this is a clear breach of fiduciary duties that the people once elected and trusted them.
#10 by donplaypuks on Tuesday, 23 June 2009 - 12:50 pm
“There is no need to approve the RM1.2 billion since it was part of the RM4.3 billion soft loan granted by Finance Ministry to PKFZ and approved in 2007.
“It was a decision made before my tenure as transport minister. The question of my asking for extra funds does not arise.”
This is nonsensical, and shows how ignorant some doctors and politicians are of the real commercial world.
The fact that a budget or loan is approved does not give anyone a licence to issue payments.
In any contract of works, payment should only be made if the work done is certified by a competent independent authority, such as an architect, engineering cosultant, professional project managers and the like, officially appointed for that purpose.
Other controls should also be in place as is the norm in large corporation and public companies, such as:-
1. The person certifying payment should not also be the person appproving payment person or be a cheque signatory.
2. Payment should be passed for issuing of cheques etc by a qualified Accountant.
3. Certifying and payment approving persons should not be cheque signatories, or if this cannot be avoided, then he/she should not be the sole signatory. A joint signatory such as the MD or independent executive Director should be mandatory. Depending upon the quantum of payment, a third signatory may be mandatory as well.
One needs to ask and get answers whether the internal control system in PKFZ was adequate for a project of the magnitude of RM 4.5 billion? Or was it the usual ‘belakang kira’ as happens when politicians get involved in dodgy land and con-struction projects?
#11 by ENDANGERED HORNBILL on Tuesday, 23 June 2009 - 12:55 pm
OTK must surely want to know the difference between statesmen and estate boys.
Statesmen are long remembered for their selfless services to their nations long after their bones return to the dust. “Estate boys” – well, we have some living examples around. “Estate boys” are remembered for a season but soon become consigned to the heaps of ‘long-forgotten-history”, in many cases, even ere their bones are incarcerated. MCA has many ‘estate boys’. OTK must beware the fates of such ilk like Ong Ka Ting, Ling Liong Sik and so on.
#12 by taiking on Tuesday, 23 June 2009 - 1:06 pm
Variation in construction works are very usual. Project owners often change their minds in the middle of construction and make changes to the original design prepared by their consultants (i.e. architects). Having said so developers hardly change their original design for it means additional costs which they cannot pass on to purchasers. Changes are usually more in the way of (1) fine-tuning their original idea or (2) accommodating some unforeseen situations that came to light during construction (which includes budget constraints resulting in down-sizing of the original project) or even (3) which is very usual, to overcome some technical / engineering problems (e.g. very soft ground encountered resulting in original foundation design not workable or inadequate).
And as the word ‘variation’ suggest, it should not be too extensive or so extensive as to result in a complete or even substantial change of the original idea. If that is so then something was seriously wrong with the original plan – assuming that the variation is justified. That is also to say, if there was nothing wrong with the original plan then is the variation which is substantial justifiable?
PKFZ’s variation costs was as large as the original project costs. What can we say? Something stinks to high heavan. Doesnt it?
#13 by Ken G on Tuesday, 23 June 2009 - 1:15 pm
Will any heads roll for PKFZ?
Of course no heads will roll as there is no political will in Ong or Najib to get to the bottom of this plunder. All that Ong is trying to do is to whitewash the affair by setting up “professional teams” to manage PKFZ in the hope that the public will overlook this enormous robbery.
Bringing the culprits to book is not about the politics of vengence. If nobody goes punished there will be more PKFZ’s in future.
For your children’s future, VOTE OUT BN!
#14 by Onlooker Politics on Tuesday, 23 June 2009 - 1:29 pm
“PKFZ’s variation costs was as large as the original project costs. What can we say? Something stinks to high heavan. Doesnt it?” (taiking)
Who is the Professional Consultant Engineer who has the power to approve variation engineering design of PKFZ project? And who is the Quantity Surveyor who has the power to certify the claim of the Main Contractor based on provisional quantities that had been properly and honestly surveyed by the Clerk-of-Work? (Anyway, is there really an honest Clerk-of-Work around for PKFZ project?)
Does PKA’s chairman know about the meaning of the engineering terminology called “scoring”? If Ong Tee Keat and PKA chairman both don’t know about the possibility of happening of “scoring” in a construction project, then both of them will not be qualified to manage a huge infrastructure development project such as that of PKFZ! It is time for Ong Tee Keat and PKA chairman to learn from a reliable Consultant Engineer and not to become a buddy of Dato Tiong of Kuala Dimensi Sdn Bhd in order to avoid some conflicts of interest in project management! Or else, Ong Tee Keat and the PKA chairman should choose to resign in order to give up their respective official seat to other more capable people in Malaysia!
#15 by k1980 on Tuesday, 23 June 2009 - 1:30 pm
PR needs to concentrate on Sabah and Sarawak to topple BN
In the last general election on 8 March 2008, the opposition — meaning DAP here — won just one parliament seat in Sabah and another in Sarawak. Barisan Nasional retained 54 seats in both states.
Nationwide, Barisan Nasional won 140 seats in total while the opposition won 82. But if we minus the 54 seats from East Malaysia, Barisan Nasional won only 86 seats against the opposition’s 80 (also if we minus the two DAP seats in Sabah and Sarawak). Now, however, since the Kuala Terengganu by-election, it is 85 Barisan Nasional versus 81 Pakatan Rakyat.
Can you see how crucial Sabah and Sarawak are to Barisan Nasional? In the next general election Barisan Nasional may win less seats than Pakatan Rakyat in Peninsular Malaysia. I would even dare bet that Pakatan Rakyat has a good chance of winning 95 seats against Barisan Nasional’s 71. This means Barisan Nasional needs to win at least 50 seats from Sabah and Sarawak to form the federal government with a minimum of 121 seats. That would give Barisan Nasional a nine-seat margin over the 112 required to form the federal government.
Nine seats is not a very large margin. But if Pakatan Rakyat increases its seats in Peninsular Malaysia from 81 to 95, then Barisan Nasional will need Sabah and Sarawak even more than before. However, Barisan Nasional will need to win at least 50 of the 56 seats in East Malaysia. If it wins only 40 seats instead of 50, then Barisan Nasional and Pakatan Rakyat would be locked in an ‘hung parliament’ with 111 seats each.
Source: RPK’s blog
#16 by Brats195 on Tuesday, 23 June 2009 - 1:41 pm
This report is very and lacking in focus;
1) There is no APPENDIX 1,2,3 in the report. How do you expect us to comprehend the report without supporting document?
2) The scope is well defined but there is neither summary nor details pertaining to the “authority to enter into contract”, “authority to revise the budget” and “process to award the contract.
I wonder why are we spending more RAKYAT’s report when there is NO substance in the report?
#17 by Godfather on Tuesday, 23 June 2009 - 1:45 pm
Ong Ta Kut says “Bukan gua bikin.”
Lee Ah Beng says “Bukan gua bikin.”
Then who bikin ? Never mind who bikin, let’s look forward and try to rescue the PKFZ project, say the BN thieves. Task Force, consultants, all hired to look forward. Don’t bother with looking back to see who’s responsible for the mess. We may not like what we see if we dig, so let’s not dig. This is the BN way.
#18 by Onlooker Politics on Tuesday, 23 June 2009 - 1:59 pm
“We may not like what we see if we dig, so let’s not dig. This is the BN way.” (Godfather)
Godfather finally says something which makes sense!
If we really have to dig, perhaps we just need to demolish a warehouse that had been built on PKFZ project and then to dig out all the piles which had been hammered underground. Perhaps we will see that the combined pile length of a single pile point underneath one pile cap may be only 150 feet long but the record sheet prepared by the Clerk-of-Work shows 450 feet long. No wonder the actual construction cost in Malaysia’s government projects has always outrun the projected cost being prudently estimated by a professional Consultant Engineer or a professional Architect!
#19 by monsterball on Tuesday, 23 June 2009 - 2:10 pm
Bringing Malaysians backward ..and on corruption…forget about it…lets move forward…..what logic is that?
Crab walking …talking and behaving….such is our crab government men at work.
#20 by monsterball on Tuesday, 23 June 2009 - 2:17 pm
“Bukan gua bikin”….siapa bikin?
Useless irresponsible balless creatures.
Only know how to talk stupid ad protect each other.
#21 by boh-liao on Tuesday, 23 June 2009 - 3:00 pm
Whatever crap coming our from OTK’s orifice
MCA members will cheer Yeah, Yeah
And the party claimed to act for the benefits of
Malaysian Chinese (can’t even differentiate between this n
Chinese Malaysians
#22 by i_love_malaysia on Tuesday, 23 June 2009 - 4:07 pm
BN always says opposition only know how to criticise and condemn the govt but never give solution to the problem.
For PKFZ, as a good citizen of our beloved country and to stop the rot of the PKFZ’s burden on the Rakyat, I would like to propose to ask UMNO, MCA, Gerakan, MIC and all the other ruling BN parties’ owned companies to buy up PKFZ for a fair value since BN govt thought that it is viable and going to make tons of profits in the very near future. If BN parties felt that it is too risky for them to do so, they might just list it in BURSA and see how many people are going for its shares. Who knows, may be PSA of Singapore might want to buy all the shares and BN parties will really make tons of money out of this scandal!!! Who knows may be the whole scandal was orchestrated by those interested parties in order to buy cheap and sell high!!! We have seen so many of these before, now and future (before GE13) under BN govt!!!
#23 by i_love_malaysia on Tuesday, 23 June 2009 - 4:16 pm
As a Chinese Gentlement, OTK should just resign from the Transport Minister post and concentrate on party matters!!! There are lots of party matters waiting for him to settle!!!
As the Chinese saying goes, “Dont bend your back for the sack of 5 buckets of rice” !!! There are lots of capable people in MCA e.g. CSL and sons of LLS etc etc!!!
#24 by limkamput on Tuesday, 23 June 2009 - 5:04 pm
Only government projects have the most number and biggest amount of variation orders or costs. Before I forget, this is another manifestation of corruption in case the dumb and the one who writes eloquently think these are mere incompetence or negligence.
Hello, wannabe, Limkamput needs no redemption from anybody.
#25 by rabbit on Tuesday, 23 June 2009 - 5:08 pm
we really need to throw away the bad apple, if not the hold basket of apple will damage, don’t forget, we r tax payer!!! dig them out and plant new apple tree in. the result will see it on GE13.
#26 by House Victim on Tuesday, 23 June 2009 - 7:29 pm
The Key points remain:
1. PKA is bounded by PAA – Port Authority Act.
2. Any project arisen have to follow the procedures set down by PAA, Obviously, it was not done and not details and variation been approved.
3. Letters of Guarantee have to be issued by MOF, provided the Project was approved with all the details and subsequent variations.
4. The project as such do not have other evidence, until now, but only showing it was manipulated with Letter of Guarantee from MOT and the “ding-dong” between MOF and MOT on the Soft-loans and so called Rescue Plan where the Government had not liability to handle.
5. Only those Ministers starting and running the Project to such a mess should be answerable to any Debtors of PKA.
6. The Parliament should turn their focus to demand explanation and responsibility on the granting of Soft-loan to PKA.
It is a case of Fraudulents!
The Privilege Committee (if it is functioning) should be called to handle those Ministers concerned. Police and AG should take other responsible to the Court.
BUT, IS PRIVILEGE COMMITTEE AN INDEPENDENT AND COMPETENT BODY?
POLICE AND AG HAD LONG OUT OF THEIR OBLIGED PERFORMANCE!!
PM GIVE THE RIGHT PENALTY TO THOSE MINISTERS AND OFFICERS INVOLVED AND RESIGN IF HE WISH TO KEEP HIS DIGNITY.
The Worst of ALL is Logic and Law, Proper Procedures, Obligations and Rights are not working!!
IF THE PARLIAMENT CANNOT DRAW A CONCLUSION THAT THEY SHOULD NOT BE RESPONSIBLE FOR THE PKFZ BUT PRESSING PM TO DO THE NECESSARY. GONE THE DIGNITY OF THE PARLIAMENT, IF MOTION OF CONFIDENCE CANNOT BE CASTED AND VOTED OUT THE EXISTING GOVERNMENT!
ALL OF THESE ARE JUST A JOKE AND SHOW AT THE EXPENSE OF TAXPAYERS TO TAKE IN DOWN THEIR THROAT AND NOT EVEN TO SOB!!
#27 by Jason Ng on Tuesday, 23 June 2009 - 8:32 pm
As expected, nothing new. So typical of BN agencies. These donkeys don’t even care what you think. They act as they wish.
Enough of this BN ‘sandiwara.’ This MACC is like a monkey show now. When it involved Selangor MB, Tan Sri Khalid Ibrahim, those MACC monkeys were so ‘super effective and efficient’ with their investigation that they announced that they had proof. Till now, we haven’t heard that Tan Sri Khalid Ibrahim has been charged in court.
However, when it involves BN cronies, as usual, they take forever till people forget about the scandal. There were already reports made few years ago, but they didn’t find anything wrong. Of course there is nothing wrong for BN cronies, it’s a BN project for BN cronies. ‘Sama-sama makan, sama-sama kaya’ project. What do we get? Nothing, we are still poor as ever. We work and pay tax, and they take away the money and keep it in their bank accounts. We pay RM10, they give us back RM3 and they call that development.
To the people of Sabah and Sarawak, please stop voting for BN. If you want to vote for BN, vote for them to take care of your state government, NOT the federal government. The tax money you pay is going to the pocket of the BN cronies in Peninsular Malaysia. It is not little money. It is RM12.5 billion. What do you get in Sabah and Sarawak? Nothing, no development, no welfare programs. They take your timber and petroleum everyday, but give you nothing back. Think wisely.
#28 by deFurious on Wednesday, 24 June 2009 - 10:25 am
Ong has now accused YB Lim was the one misled the public. Looks who’s talking?
Umno-ized MCA knew how to learn the same dirty tricks from his master, I sympathized those MCA supporters especially my father. He played down after the 308. There was not even single thing he can cheer out loud for MCA.
He used to believe Ong still can be respected – a person with dignity. All down to the drain….
Shame on MCA. Dun ever claim u represent Malaysia Chinese… not me.
#29 by imranj78 on Wednesday, 24 June 2009 - 4:29 pm
LKS,
Care to explain and respond to OTK’s statement below?
“I bring Kit Siang to task for suppressing the truth and to continue misleading the House and the public. He rudely interrupted my ministerial statement by accusing me of not referring to the Cabinet decision on 23rd October 2002 that the land should be acquired at a lower price of RM10.16psf.
What Kit Siang had conveniently omitted to mention was that the decision on the 23rd of October was subsequently superseded by the Cabinet in its meeting on 6th of November 2002.
The DAP leader may not be a cabinet member but the Parliamentary Hansard dated 4th September 2007 clearly recorded that the decision of the cabinet on the 2nd of October 2002 to purchase the land at RM25psf continued to stand for the reasons mentioned in my parliamentary statement.
Kit Siang knew of this. In fact, he was engaged in a debate on this on 4th of September 2007. He even posted excerpts of the Hansard in his blog the very next day. And yet he chose to suppress this important fact from the public for the sake of a political gimmick bent on rescuing his fading political career.
My challenge to Kit Siang is for him to be man enough to admit that he had deliberately misled and confused the public by failing to disclose the full and proper account of Cabinet decisions on the PKFZ project. He should administer the dosage of medicine that he so freely prescribes for others on himself by referring his ownself to the Committee of Privileges.”
#30 by TomThumb on Wednesday, 24 June 2009 - 9:07 pm
what did kit uncle lim know? when did he know? the rest of us would like to know.