Major cover up of RM12.5 billion PKFZ scandal at work?

I had posed a question on the “mother-of-all-scandals”, the RM12.5 billion Port Klang Free Zone (PKFZ) scandal to the Prime Minister, Datuk Seri Najib Razak on the first day of the budget meeting of Parliament beginning on Monday, 19th October 2009.

I have just been informed that this question had disappeared altogether from the list of oral questions for Monday’s meeting of Parliament.

Signs of major cover-up of the PKFZ scandal at work?

DAP MP for Segambut, Lim Lip Eng’s question on the PKFZ scandal has also disappeared from the forthcoming parliamentary list of questions.

This is the question on the PKFZ scandal which I had submitted:

“19th Oct 2009 Monday

“To ask the Prime Minister the outcome of 2007 Cabinet decision commissioning the Chief Secretary, Economic Planning Unit, Prime Minister’s Department to look into various aspects of irregularities in the Port Klang Free Zone scandal, including unlawful issue of four Letters of Support.”

  1. #1 by Godfather on Tuesday, 13 October 2009 - 6:27 pm

    Investigations are ongoing, so your question has no relevance. Investigations will take another 10 years, so let’s see where PR will be in 10 years’ time.

    Cover-up ? What cover-up ? We have everybody working on it – MACC, PDRM, Transparency International, PwC, Skrine, and now the head of the civil service. What more do you want ?

  2. #2 by mendela on Tuesday, 13 October 2009 - 6:50 pm

    Kit, a man has got to do what a man got to do!

    Pls go all out to bombard NR and all the scumbags next week in Parliament till they all shit in their underpants!

    The war against PKFZ scandal must be intensified.
    Instead of using a machine gun, you may need to employ neuclear war heads!

  3. #3 by jonathan89 on Tuesday, 13 October 2009 - 6:54 pm


    what does PR got to do with anything? it not a political issue, just a corruption scandal involving politicians. yes everyones working on it or at least trying to by asking the governwent who are trying to ignore the whole issue and hope it will pass by with the help of people like you. no relevance my ass.

  4. #4 by k1980 on Tuesday, 13 October 2009 - 7:17 pm

    It is not so much a cover-up as to find a fall guy to take the blame for the scam

    Why doesn’t this apply to Malaysia?

  5. #5 by storm62 on Tuesday, 13 October 2009 - 7:29 pm

    any oppossition MPs who brings up the PKFZ scandal will be arrested under ISA in Parliament….nice cover up by the umno’s pm.

  6. #6 by Godfather on Tuesday, 13 October 2009 - 8:16 pm

    Jonathan89, you are really wet behind the ears. Read my previous posts on the same subject first before you start throwing molotov cocktails. Did you attend any of the DAP seminars on the subject ?

    I was just echoing what every BN clown would say in response to Kit’s comments above.

  7. #7 by cinaindiamelayubersatu on Tuesday, 13 October 2009 - 8:30 pm

    pkfz didahulukan
    gapaian wang ringgit mesti diutamakan

  8. #8 by OrangRojak on Tuesday, 13 October 2009 - 9:30 pm

    Godfather, go easy – he made me laugh. They don’t say sarcasm is the lowest form of wit for nothing!

  9. #9 by pwcheng on Tuesday, 13 October 2009 - 10:21 pm

    They have done a great job by burying OTK and with that they had also buried the PKFZ issue. That is how much UMNO and Barisan loves Corruption. They will bury anybody and everbody who is fights corruption.

  10. #10 by sheriff singh on Tuesday, 13 October 2009 - 10:57 pm

    “Its specific. Its of public interest. BUT its not urgent. The government has already taken steps to look into it. Call back in 2013”.

    See? Even I can be the Speaker.

  11. #11 by Godfather on Tuesday, 13 October 2009 - 11:03 pm

    Rojakman, don’t laugh too loud. Whilst my comment was tongue-in-cheek, the sad reality is that all BN need to do is parrot my comment and 90 pct of rural folks will accept it as the gospel truth. 90 pct of urban folks like you and I will say it’s hogwash, but in actual numbers, we will be outvoted.

  12. #12 by limkamput on Tuesday, 13 October 2009 - 11:16 pm

    Godfther, it means you have been away or staying low for too long so much so some here do not really know you already.

    Must tell PR to translate how the PKFZ scandal has affected the livelihood of ordinary citizens. May be instead of stating RM12.5 billions all the time, PR must use RM12,500 millions or RM12,500,000,000. Then may be ordinary folks will understand or relate better how this amount is compared to a tin of milo or RM300 they purported received from whoever.

    Bagan Pinang has 12,500 voters. If we divide RM12.5 billion into 12,500 voters, each will get RM1,000,000. Did PR state this during their campaign?

  13. #13 by GilaPolitic on Tuesday, 13 October 2009 - 11:46 pm

    Ong Tee Keat want to become a HERO against PKFZ ! Tainted Chua become a big bully doggy used to destroy Ong political future ! Ong TK is removed from MCA now. PKFZ is bury under 6ft underground.


  14. #14 by monsterball on Wednesday, 14 October 2009 - 12:02 am

    UMNO is going all out to show their power to do as they like.
    And why not.
    If they can support a corrupted man to stand for a by-election…..and won big….they will do as they like.
    They think……Malaysians will support corruptions…..based on the Bagan Pinang 8000 voters supporting UMNO….which got them to say…42% Malaysian Chinese supports UMNO now….and no doubt…more than 80% Muslims too.
    UMNO will treat Parliament…a side show.
    Half truths that signal bad for UMNO…all will be deleted…no more Parliament.

  15. #15 by Jeffrey on Wednesday, 14 October 2009 - 7:34 am

    One of the Questions “disappearing” from “forthcoming parliamentary list of questions”: – ‘To ask the Prime Minister the outcome of 2007 Cabinet decision commissioning the Chief Secretary, Economic Planning Unit, Prime Minister’s Department to look into various aspects of irregularities in the Port Klang Free Zone scandal, including unlawful issue of four Letters of Support.’ – YB Kit.

    It disappeared because to answer in parliament this ‘trick’ question of what the outcome of 2007 Cabinet decision – when we all already in hindsight know from events the outcome – the government will be forced to indirectly admit to its laches/ misfeasance in committing more and more public finances into a PKFZ project (after the 2007 Cabinet decision) without justification or reasonable cause for such commitment (even in 2007), and hence will provide detractors the bullets and ammunitions to question its motives, if not impute bad motives in parliament debate to support this dying project.

    In short, in answering the question, the govt would be indirectly confirming what RPK alleged – that it knew everything all along!

  16. #16 by Bigjoe on Wednesday, 14 October 2009 - 7:36 am

    When Najib first took office, I remember him saying he said he advice those involved to reveal the truth and based on that stuff started showing up.. BUT as things heated up for OTK, the one thing you notice is Najib stayed more and more silent about it.

    This is Najib at his best. When he does not have to carry the crap, have little to benefit from it and yet may be liable if dragged into it, he is pretty good at shooting off his mouth. When things get hot e.g. Altantuya and Scorpene, he stays quiet and run away.

    So what is so surprising he is running away from it now?? A wimp always a wimp..

  17. #17 by Jeffrey on Wednesday, 14 October 2009 - 7:37 am

    For what was apparent and known to the government even in 2007 was that:-

    1. Chief Secretary, Economic Planning Unit, Prime Minister’s Department directed by cabinet to look into PKFZ must have enquired and known that PKFZ was financially unsustainable and, as a commercial proposition not viable; that occupancy was 14% or less with revenue generated in miniscule proportion to on-going high burnt rate/cost overruns (underwritten by public finances); that PKFZ Sdn. Bhd. shareholders funds already dismally negative…

    2. Yet in spite of conditions stated in 1., cabinet after 2007 cabinet gave soft loan of RM4.632 billion (revised to RM4.382) billion at a rate of 4% per annum and re-affirmed that whatever status of the letters of support issued by the 2 ex MCA Transport ministers, government would honour their expectations and assume liability drawing from public coffers rather than repudiate support for PKFZ. It is interest from this MOF soft loan (plus other interest chargeable by KDSB that will increase the PKFZ Project outlay to RM12.5 billion!

    3. 2. above in turn raises the next question of why this extent of govt’s commitment to pump in more and more public money when no serious effort was being made then in 2007 to verify or dispute the amount of claims by KDSB especially when PKA was not receiving value for money that it paid KDSB. (In context of a corporation, these are the very same questions shareholders will rile the board of directors if they keep pumping money into a high cost project of dubious feasibility and viability. It relates to same questions of accountability and fiduciary duties on the part of those who manage others’ monies).

    4. There is then only one excuse that may be proferred – that PKFZ project is of national interests ire to make Port Klang competitive and successful.

    5. 4. leads then to next question – if PKFZ were a project of national importance/public interest why did the govt’s (way back in 2003) allow PKA to buy from KDSB 999.5-acre project land at RM 25 per square foot on “willing seller and buyer” basis when AG then recommended market value at most RM10 per square foot, and government could have compulsorily acquire this land via the Land Acquisition Act (designed to cover public interest project of such nature)?

    And then to award Turnkey job to precisely the same party from whom one bought the land at high price? This poses precisely the moral hazard issues.

    It also poses the question of consistency – one cannot in 2003 treat it as not a public interest project (hence no need for compulsory acquisition at RM10 per sq ft) and yet in 2007 onwards treat it as one by committing further funding via soft loan and ratification of letters of support when time has run and it is shown this is not a viable project.

    This selective treatment based on situational expedience gives the public whose finances are used to finance it to question and impute improper motives.

  18. #18 by PureMalaysian on Wednesday, 14 October 2009 - 8:40 am

    If u were Najib, won’t u do the same thing? ;)

  19. #19 by taiking on Wednesday, 14 October 2009 - 8:40 am

    Oi Godfather,

    Cant you see it. They may brand LKS a real Knuckle-head McSpazatron for raising such query.

    The people of Bagan Pinang approved of umno’s corrupt ways by landing umno with a thumping victory. And that victory means everything to umno. Cow head okayed. PKFZ okayed. Benghocking macc witness okayed. Seefouring apparent stalker okayed. All okayed. The victory emboldened them as well.

    Mysterious disappearance? No No No my friends. It is Official deletion under direction.

  20. #20 by carboncopy on Wednesday, 14 October 2009 - 8:48 am

    PureMalaysian :
    If u were Najib, won’t u do the same thing? ;)

    We are not Najib, neither are we Umno.

  21. #21 by Hugos on Wednesday, 14 October 2009 - 8:51 am

    “Bagan Pinang has 12,500 voters. If we divide RM12.5 billion into 12,500 voters, each will get RM1,000,000. Did PR state this during their campaign? >>>>limkamput

    Wow …! That’s brilliant. PR leaders should have consulted limkamput whose ideas were stolen by LKS and claimed as his from time to time.

    They never thought of it that way. With the RM 1,000,000 per head, imagine how many shots of antipsychotic medications could be given to limkamput.

    Now we get the picture. Why didn’t we think of it that way?

  22. #22 by Jeffrey on Wednesday, 14 October 2009 - 9:01 am

    Its human trait to make money, and do so one needs an avenue in which one is in the “driver’s seat” and call the shots in decision making and could leverage on niche to have financial gain to which others don’t have access. If one has business background and entrepreneurship business is normal route. One is careful with expenses if business is one’s own. Again if you’re professional manager – unless you are well paid, the company has inbuilt check and balance against abuses – then some professional manager will also use their position to make side money. What more politicians in power where the finances available are from national coffers. To many (who otherwise are not businessmen) politics is avenue to make big money because power gives one the leverage to decide in the driver’s seat, one is careless because its not one’s money that is risked. So the bigger the project, the greater the percentage cut. It is always done in the name of public interest. That’s a perfect cover. For example in a major rice producing country, the politician there will say that the country’s traditional rice warehouses will cause rice warehoused to deteriorate and will be replaced by 200 temperature-controlled silos and will look for a crony to construct them at inflated costs to provide the margin for kick back. To preempt others within government from opposing they also will be “taken care of”. One of the “legitimate” excuses is to contribute to political party political funds. So the party takes a portion, and you take another portion with all in complicity. If you prosecute and drag one politician down the rest also will also be brought down including the party, which is not acceptable situation because is the Godfather to all, past, present and future officials to make money! Hence no big sharks are ever caught only ikan bilis to advertise to people whose money are robbed that corruption is tackled. Let it be clear that political corruption is not a local phenomenon; nor is it even regional to Asian, its worldwide varying in different disguises degree and form. Why even in good old Britain where the electorate are more matured about such things and less indolent about needs of public accountability, there were politicians recently exposed to abuse perks privileges from public money. (PM Gordon Brown recently apologised for their expenses, which included claims amounting to thousands of pounds spent on gardening, home furnishings, plumbing, security, for dog food and light bulbs). Politicians in UK or France, even if in the beginning they didn’t know how, will no sooner be taught by their Asian counterparts how to “make a deal” on G-G basis. They will promise to build a bridge (for public interest) even if’s there’s no river because the contract may be awarded to crony and inflated out of some others tax payers money, and one gets it back because the other is crony under patron-clientele ‘I scratch yours and you scratch mine’ exchange in corner of the market!

    Life goes on. Its always the same: politicians in power making money, citizenry seeking to stop them because its ‘their’ money, opposition attacking the government on corruption, hoping to convince citizenry to vote them in, in replacement, to do exactly the same thing (maybe in a different not so blatant recognisable way) as their predecessors. Moral of story – you can’t trust anyone taking care of your money for your good. The problem is not solved but mitigated if some how politicians (as in Singapore) exorbitantly paid, or if they like JFK, inherited $100 million and are already rich before he became politician president or there’s strong institutional safeguards against human tendency to be corrupt, such as open tender system and strong anti corruption agency backed by political will or better still, like American lobbying system, legitimizing certain contributions arguably corrupt as legitimate…Why does Ronald Reagan say that politics was 2nd lowest profession bearing resemblance to the first (prostitution)? Its politics gives the power to decide on others’ money, and power as Lord action says corrupt, the more absolute the more corrupt, factoring in human nature

  23. #23 by boh-liao on Wednesday, 14 October 2009 - 9:05 am

    “Only those who can deliver victory to Umno and Barisan Nasional will be chosen as candidates in the next general election.” Said NR
    1Message is loud n clear
    Mega corrupt, small corrupt, big guilty, small guilty, not guilty – semua pun OK
    As long as can deliver victory to Umno B n BN, good candidate
    Who cares abt PKFZ scandal
    What scandal, sandals lah 4 throwing one

  24. #24 by jonathan89 on Wednesday, 14 October 2009 - 10:04 am


    Nah I apologize I haven’t read the comments but will do soon haha I was kinda in a hurry before so just fired a quick comment. It did seem kinda odd that an “anti-PR” reader would comment here but if that was suppozed to be a quote its still the sad reality facing us all.

  25. #25 by jonathan89 on Wednesday, 14 October 2009 - 10:08 am

    oh and no I haven’t attended DAP seminars.

    I’m overseas studying at the moment but it breaks my heart watching what’s going on in Malaysia to all malaysians. To be honest though I don’t think DAP is a good party but right now anythings better than the BN we have.

  26. #26 by undertaker888 on Wednesday, 14 October 2009 - 10:38 am

    …Life goes on. Its always the same: politicians in power making money, citizenry seeking to stop them because its ‘their’ money, opposition attacking the government on corruption, hoping to convince citizenry to vote them in, in replacement, to do exactly the same thing (maybe in a different not so blatant recognisable way) as their predecessors. …jeff

    True, true and true. But if a pencil cost 1RM in the market but inflated to10RM, this is daylight robbery. If they charged RM1.10 or a little bit, i am fine with that as long as we get good schools, no-toll good roads, fair justice..etc. I am not sure with you guys.

    Running a family of 3 or more is already hard work. Imagine running a whole country with 28++ million people. We understand that. But don’t rob us high and dry, tell us lies, suppress us, murder us plus coverups afterwards like we are a bunch of their slaves and morons. Politicians-well they are humans too, with families and mouth to feed. But dont rob us high and dry like the scums of the earth umno and dacing gang so that they all can live like kings and queens at our expenses.

    If you look at the infrastructures in urban areas in Singapore or even China, ashamed to say we are lagging far far behind. This is chronic corruption in Malaysia. They dont care about the rakyats. All they care is to sapu the rakyat’s coffer to their swiss coffers.

    Well, if we make noise, they would raise the kris, parade a moo-head, pendatang name calling, un-grateful, OSA, ISA, C4, and what have you…

  27. #27 by lkt-56 on Wednesday, 14 October 2009 - 11:08 am

    With such publicity given to the PKFZ issue it will be a formidable task to cover it up. In addition Law suits have been filed… I wonder how can they ever cover it up.

    But if they do… what can we as concerned citizens do to make sure that they cannot get away with it? For a start I would say that Jeffrey has done a marvelous job to explain what’s going in the PKFZ issue.

  28. #28 by lkt-56 on Wednesday, 14 October 2009 - 11:12 am

    Can we take up a class action suit like they do in some countries?

  29. #29 by sheriff singh on Wednesday, 14 October 2009 - 11:22 am

    Sure you can Its called “elections”.

  30. #30 by Jeffrey on Wednesday, 14 October 2009 - 11:24 am

    ///But if a pencil cost 1RM in the market but inflated to10RM, this is daylight robbery/// – Undertaker888.

    We’re in agreement here. Having regard to human nature to be “corrupt”, it is idealistic to hope eliminate it entirely from face of earth (regardless whether present guys in power or replaced by Opposition) but some of these guys are not just making 10 to 30% kickbacks but they sometimes inflate costs by 200 to 300%! Its a state of affairs thats blatant, flagrant and arrogant, and if there’s a word for it, its runaway corruption (like they describe runaway inflation!).

  31. #31 by Winston on Wednesday, 14 October 2009 - 11:42 am

    Well folks, all this going around the mulberry bush by the UMNO/BN government will not lead anywhere.
    Every body knows that!
    It’s just a smoke screen. They are not going to throw the book at those who committed the offenses for the simple reason that they are their own cabinet, party members or underlings.
    And they also know very well that there’s nothing in the world that anyone can do about it.
    Yes, you can get infuriated, so what? That doesn’t stop them from emptying the till, doesn’t it?
    So, there’s only one thing left to do.
    Anwar Ibrahim has already buried the May 13 bogeyman and convinced many Malays that the PR can offer them an equitable way of distributing the wealth of this nation instead of having a few top Umnoputera benefiting from it.
    Perhaps the next step is for the PR to follow this up very vigorously to spread this message among the Malays, especially those in the rural areas.
    This is what I’ll call the last bastion that the PR must penetrate.
    And the earlier they get started, the better.

  32. #32 by Jeffrey on Wednesday, 14 October 2009 - 12:03 pm

    Given, the propensity of politicians to create deals/projects (as an avenue for them to make money) the important control to be exerted to prevent scandals of PKFZ proportion is basically to impose requirements (by institutionalised procedures and regulations) to ensure (1) project viability and (2) competent people to implement the job. This means (1) may tolerate some 30% inflation of costs but certainly not 100% or more….and regards (2) open tender, but if thats not practical, if they still want to award to a crony for obvious reason then that crony should have a track record, capital and experience.

    The above (1) and (2) is obvious, considering that although Finance Procedurre Act in place where govt cannot liberally give guarantees, fact is project undertaken by govt agencies depending on govt revenue stream (which is often securitised as in PKFZ case) will have to be credible to the market or else no one wants to deal with the government. So it is a sham for the govt to say (hey the contractor gets his own financing when the fact is the contractor will raise finance from markets securitised against govt revenue ultimately and financiers and investors will always ask for letters of support or awareness or its variants which though not tantamount in law to stature of guarantee, however morally comit the govt to fork out the money at the end.

  33. #33 by boh-liao on Wednesday, 14 October 2009 - 12:05 pm

    These few days, the mega corrupts are paraded n toasted as saviours of the nation
    And protectors of all peoples in this nation
    Will there b another round of keris waving
    Mouth frothing bloodthirsty war cries
    They will continue to do so bcos voters gave them overwhelming support

  34. #34 by jbozz on Wednesday, 14 October 2009 - 12:08 pm

    Najis is an actor.

    1) Neutralize all threats and pull all threats to become part of its coalition. (Makkal Sakthi party) – Job DONE

    2) Write & Published books to state UMNO weakness – Job DONE

    3) Tell the world that UMNO care for everyone – Job DONE

    This has become a drama for CANCER victim to self cure itself from MONEY POLITICS or CORRUPTION

  35. #35 by taiking on Wednesday, 14 October 2009 - 12:16 pm

    Yeah. And the cancer cells inside umno will soon declare the patient (i.e. umno) cured. How mysteriously wonderful that would be.

  36. #36 by OrangRojak on Wednesday, 14 October 2009 - 12:17 pm

    spread this message
    Ahhh, dissemination – ‘spreading the seed in all directions’. Ought to be easy! But it isn’t. Perhaps Uncle Lim ought to publish a ‘guide for concerned citizens’. We can’t print a newspaper. Can’t broadcast on radio or TV. Can’t hold a rally. Direct mailing from a political party would probably be ‘publishing’. Direct mailing from an informal association of concerned citizens would probably be prejudicial to any of the surprisingly long-running legal processes. Anything else? Door to door visits would probably land the visitor in Kamunting for ‘apostasy’ – at least for a few weeks until they ‘realised’ their mistake and released you with a smile, handshake and ‘could happen to anybody!’.

    Does that about cover it? That leaves us with monsterball in the kopitiam, our only hope.

    There’s always balloons from Singapore a la the South Koreans. Maybe that’s a metaphor for RPK’s web – that’s in Singapore, isn’t it? Perhaps that’s why the temperature has been rising recently under the ‘take back Singapore’ pot. How about driving a sharpened bamboo stick through a pile of leaflets, and throwing it from Indonesia? I think it’s too far.

    I imagine PAS might have direct access to some traditional UMNO supporters – but I think I also read recently something about divisions between PAS mosques and UMNO mosques. I think broadcasting partisan political messages from the pulpit can be counter-productive for religion.

    Maybe DAP should make its own-brand cereal. Reading the box is a breakfast tradition where I grew up. Oh, you don’t eat cereal for breakfast, I forgot.

    That’s it, I need coffee, brain too tired already. Any other ideas?

  37. #37 by Godfather on Wednesday, 14 October 2009 - 12:30 pm


    According to folklore, the mooncake festival had its origins when the message for an uprising against the barbaric mongols was embedded in mooncakes and distributed far and wide.

  38. #38 by Godfather on Wednesday, 14 October 2009 - 12:34 pm

    Since we are on the subject of corruption and PKFZ, you folks should see how Isa Samad was feted at the UMNO General Assembly yesterday. He was treated as a hero by all and sundry. There is no chance that anyone in BN would be found guilty under the PKFZ fiasco – the highest ranking scapegoat will probably be OC Phang, and even then the court case against her would take another 10 years or longer – and then our infamous prosecution would contrive to lose to the defence team.

  39. #39 by OrangRojak on Wednesday, 14 October 2009 - 1:27 pm

    I hadn’t heard that story before Godfather – Wikipedia has an extension to it that explains the 4 characters as an encrypted message, readable by cutting 4 mooncakes into quarters and reassembling the parts. Interesting!

    I was wishing recently I could buy a heat-sensitive black mug. Pouring hot beverage into the mug would cause the image of a beautiful ghost to appear. I think it would be a popular gift – with givers, at least!

    I’m not sure how we could work a PKFZ message into a mug. Perhaps a trick mug with no bottom? Perhaps DAP could send out festival ang pows with a single RM12.5bn note inside? Since the issue has been delayed until December, DAP could pre-order some “Season’s Promises from BN” xmas wrapping paper and give out empty boxes. I’m fairly sure ‘turkey’ will be on this year’s menu.

  40. #40 by Winston on Wednesday, 14 October 2009 - 1:34 pm

    Ref: Jeff’s posting #32

    Do remember that UMNO/BN is NOT going to let any laws, whether constitutional or otherwise to hinder their money making efforts. Also remember that the amounts involved are not chicken feed.
    Not only that, this party has fifty over years of bending the laws in their favour to ensure that they’ll stay in power ad infinitum!

  41. #41 by limkamput on Wednesday, 14 October 2009 - 3:57 pm

    Government guarantee is a form of “off budget” liabilities of the government. Usually all existing projects are funded through current year budget and hence future revenue flows are seldom taken into explicit consideration. For information, government finance is still based on “cash basis”.

    The government providing financial guarantees indiscriminately (whether to privatised concessionaires or contractors of government/agency projects) is dangerous for two reasons: First is the problem moral hazard where (because of the guarantees) the undertakers of projects as well as their bankers would no longer be interested to ensure the viability of the projects. They know should the projects fail or purposely made to fail, it is the government who has to bear the responsibility. We have numerous projects of this nature in the past where the government is saddled with the babies while the concessionaires and their bankers are paid even though the projects have failed.

    Second, with government guarantees, there is a tendency for cost overrun and ridiculous variation orders because cost control, prudent management and ultimately projects viability are no longer important to the promoters and bankers. It is a business where they could make all the profits while the risks are ultimately the responsibility of the government.

    To protect the interest of tax payers, it is good to insist that the government cannot simply guarantee debts issued by the project promoters. If such guarantees are to be given, it has to come only from the Finance Ministry and perhaps after due considerations by the cabinet. Other government ministries/agencies, no matter how justified and no matter how those letters are worded (be they letters of support, comfort or awareness) cannot and should not constitute letters of guarantee as per Financial Procedure Act. We must compel the government to disseminate this message unequivocally to all parties – the promoters, the bankers, the bonds arrangers and investors and the sooner we do this the better.

    There is a reason why many government projects (whether implemented directly by the government or through privatisation or through private finance initiatives) are white elephants or have always resulted in cost overrun. In addition to incompetence and corruption, the mother of all reason is moral hazard.

    More problems are likely to emerge because the Finance Ministry has lost its pivotal role as the financial controller of the government. This problem has its origin when PM (during Mahathir era) also appointed himself as Finance Minister. Since then successive PMs have continued with this bad habit for reason best known to themselves.

  42. #42 by undertaker888 on Wednesday, 14 October 2009 - 4:57 pm

    …That’s it, I need coffee, brain too tired already. Any other ideas?… rojak

    How about the old fashion way? The chain-reaction effect. Tell your friends in your neighbourhood and co-workers on where to find MT, LKS blog..etc. They will in turn tell their friends, friends.1-2-4-8-16-32-64….
    Just convinced 2 staunch BN supporters who only read The Star as a source of information to access MT, LKS blog,,,etc. And they do not even know MT, LKS blog..etc existed.

    But I wish MT and LKS blog has more Malay, Indian language as well. More so, so that more appealling to those who can’t understand english well.

    Well, PR you have 2 years to work on it.

  43. #43 by Hugos on Wednesday, 14 October 2009 - 11:01 pm

    “Other government ministries/agencies, no matter how justified and no matter how those letters are worded (be they letters of support, comfort or awareness) cannot and should not constitute letters of guarantee as per Financial Procedure Act.” >>> limkamput

    Consider how stupid this statement is.

    A guarantee is a guarantee because it is labeled such. A letter of support is not a guarantee because it is labeled ‘support’? A letter of guarantee is not in fact a letter of indemnity because it is not labeled ‘indemnity’? A contract is a contract because it is labeled such?? How stupid is that!!!! If that is the case commerce would not be burdened with the cost of litigation.

    “limkamput’ is not Pendek b. Pantat suffering from split personality, who has slogged for his UMNO masters for twenty years because his handle says he is not?? Sheeesh …! Wake up and smell the coffee.

  44. #44 by monsterball on Thursday, 15 October 2009 - 12:43 am

    I will join in ..a cuppa with you…Hugo
    Excellent energy…sharp mind…needed.
    Keep up the good work.

  45. #45 by Hugos on Thursday, 15 October 2009 - 1:09 am

    Yep. You and I are gonna kick Pendek’s rear so hard he’ll be spending his remaining miserable life looking for it.

  46. #46 by monsterball on Thursday, 15 October 2009 - 2:00 am

    He said he is tall and handsome…still single…so many to choose…different flavors of milk…very difficult give up one….proudly proclaiming..he is so intelligent…girls simple cannot leave him alone.
    He loves to insult… get ateention plus luring me to be ban from this blog with him along.
    That will please him most.
    Once awhile…he wants to be my english teacher…whose english are .no better than mine.
    He is not creative…but thinks he is…with all his stupid suggestions.
    He loves teaching PR how to run the country…better than UMNO.
    This NUT is impossible for us to ignore.
    We will have our cuppa and watch out for him.
    You take the lead..I listen…even if he picks me for a battle.
    You can handle him far better than me…..and I am sure few commentators appreciates your good work.
    Keep up the good work…Hugos.

  47. #47 by asmehane on Thursday, 15 October 2009 - 2:49 pm

    Dera Lim,

    Pls forget yr intention to raise up the same issue over and over again…. the matter is under investigation let the proper guys do their jobs with peace in mind with harrassment from u and your cronies. I think u just like to play the same issue in parliament ’cause u don’t have any more new ideas to pur foward in the coming sitting. U TAKUT, if there is no hot news or issue from u during the sitting people will forget u and u will just fade away in time. I had been observing that u and your cronies are fast to just asking for royal commission etc, when the judment or conclusion are in your favour then ” JUSTICE IS SERVED OUR JUDICIARY IS NON PARTISAN AND THERE ARE SEPARATION OF POWER ” but when the end results were against u , ” ######### “. Please clean your own backyard ie Selangor State Government which is under under your cronies jurisdiction, ASK FOR ROYAL COMMISSION so they be able to investigate about THE ABUSE OF FUND / INVOLVEMENT OF TRIAD / DISTRIBUTION HEALTH CENTRE etc etc or REGARDING SD of former Bank Negara Officer regarding RM 3 BILLION OWN BY ONE OF THE LEADER IN PR BACK IN 1999 OR 1998 or U should raise up about the DELAY OF COURT HEARING REGARDING SODOMY CHARGE……. IF U are talking AND BRAGGING about JUSTICE then raise up these issues. The problems is most of your cronies is involved or centred around a particular personality trying to APPLY DELAYING TACTICS to prevent a certain personality from being trial in court by applying ……. GOD’ S KNOW.

    Pls YB Lim, don’t be a sore loser. Tell your cronies A LOST IS A LOST, the problem is not with BN but with PR itself. If u had the time, READ THE COMMENTS POSTED ON YOUR BLOG. It’s distasteful full of hatred, revenge, some were so racist, name calling that can even demoralising people who read the comments. Ideas thrown some were good but mostly full of hatred…… Dear Lim u don’t to brad that your blog been visited many so many people but in actual facts there few. Maybe there 30 – 40 comments being posted regarding a single article BUT IN ACTUAL FACT THERE ARE LESS THAN 10 PEOPLE, these same people just lashed out without thinking as if they were the expert. When in Bagan Pinang PR LOST HEAVILY, comments were thrown to said these voters were immature , corrupted etc BUT IN ACTUAL FACT THIS IS DEMOCRACY, let the voters choose their representative it is their right why must make a fuss. When talking about the fracas during by election, supporters from both sides are hooligans, who are these hooligans… mostly outsiders who being paid and sponsored by theirs parties. WISE UP

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