PAC must act fast – prevent another multibillion-ringgit Matrade 2 scandal after the 10-year RM287 million Matrade 1 scandal

The Public Accounts Committee (PAC) must act fast – prevent another multibillion-ringgit Matrade 2 scandal after the 10-year RM287 million Matrade 1 scandal.

The PAC had previously held several meetings on the Matrade 1 scandal, but they were of no practical relevance or consequence as what the PAC did was to lock the stable door after the horses had bolted.

As far as I know, not a single sen had been recovered by the government despite solemn assurances in Parliament by the Ministers concerned to pursue legal actions and penalties against the defaulting parties – with the Umno cronies laughing all the way to the bank with their ill-gotten multi-million ringgit NEP gains.

In the first Matrade scandal, the 24-storey Matrade building took some 10 years to be completed at a RM120 million cost overrun resulting in a final cost of RM287 million, i.e. at over 70 per cent of the original estimates of RM167 million. For years, the cracked façade of the incomplete Matrade Building stood as shameful symbol of Third World Mentality in a land of First World Infrastructures in the very heart of the federal capital.

Now, a multi-billion ringgit Matrade 2 scandal is in the making.

The shocking claim by the Minister for International Trade and Industry Datuk Mustapha Mohamad in Parliament yesterday that the government was getting a RM628 million Matrade expo centre for free from Naza TTDI in a building-for-land deal, exchanging the centre for 62.5 acres of prime land in Kuala Lumpur for a project with a gross development value of RM15 billion.

Mustapha more than raised eye-brows when he said that the 62.5 acres of land were valued in 2007 at RM197 million or some RM72 per sq ft, when unconverted land for Hartamas/Duta areas in Kuala Lumpur is already over RM100 per sq ft.

The Cabinet must stop the whole Matrade-TTDI Naza project until it gets full clearance by the PAC as complying with the Prime Minister’s commitment to transparency, accountability, integrity and good governance – in particular with regard to open tenders for mega government projects.

  1. #1 by Winston on Thursday, 26 November 2009 - 4:50 pm

    They won’t act at all.
    They are out to make hay while the sun shines!

  2. #2 by k1980 on Thursday, 26 November 2009 - 4:51 pm

    PR stands an excellent change of winning the 13 GE by advocating the abolishment of GST the moment it forms the federal govt

  3. #3 by yhsiew on Thursday, 26 November 2009 - 5:05 pm

    Should Matrade 2 scandal become reality, It is only logical for people on the street to conclude that all parties that push for the Matrade 2 project are guilty of conspiring to get the project take off in order to fill up their pockets!

  4. #4 by Godfather on Thursday, 26 November 2009 - 5:33 pm

    Open tender does not apply to UMNO. It is enshrined in the constitution. Just ask our resident village idiot Kasim Amat, who has been rather quiet of late. He and his buddies are preparing to charge all of us with sedition for questioning their rights to sweetheart deals.

  5. #5 by Bobster on Thursday, 26 November 2009 - 5:41 pm

    Scandals upon scandals and the daylight robbers and continue to rob the nation. When can fellow Malaysians see the light at the end of tunnel?

  6. #6 by boh-liao on Thursday, 26 November 2009 - 6:27 pm

    Y PAC must act fast, nothing wrong lah
    Business as usual as per KPI n SOP of Umno n BN
    Just like MY die die must defend the Biro Tata Negara (BTN) courses as bagus
    They r a form of nationalism in line with the 1 Malaysia concept
    Mana boleh tak brainwah civil servants n public university undergraduates?
    Hidup ketuanan Melayu, hail ketuanan Melayu

  7. #7 by OrangRojak on Thursday, 26 November 2009 - 6:32 pm

    Bobster, I think the light at the end of the tunnel is extra. I’m sure the original agreement was just for lots of tunnel with no light. You can have a light, but if you have to ask how much, you can’t afford it.

  8. #8 by frankyapp on Thursday, 26 November 2009 - 11:24 pm

    Asking PAC to act and stop this project is like asking NR to admit his involvement in the atan case. You guys can be assured that the term and condition between the two parties is such that when PR becomes the fed.goverment,it would not be able to revoke it.These guys are not only daylight robbers but are master at it too..

  9. #9 by gofortruth on Friday, 27 November 2009 - 1:04 am

    A simple barter system logic. Will you give away your land that worth 15000 ducks in order to exchange for a building that only worth 628 ducks? This is so fishy!!

  10. #10 by albert308 on Friday, 27 November 2009 - 1:23 am

    A study should be conducted to look into Naza group business activity and profitability. Naza started as a major player in automotive/car industry under our country protectionism policy. The late chairman also a well known APs king during Rafidah days as Minister for trade and industry. Ever since AP king issue blown up, the Naza car seem not doing well ever since AP issuance under scrutiny. One must remember that Naza group has big automotive plant in northern region, this must incur huge cost for operation.

    Why recent years Naza group enter property development? Naza has a big plant in Kedah! Should a successful car maker go big into property sector or glut in Malaysian car market affected Naza present in car market badly? If Naza failed in car industry due to government’s liberalisation policy, should Trade and Industry Minister find ways to save and bail out crony company at the cost of country assets?
    Umno BN is still very much the same old ways of cronyism and bumiputraism in decision making.

  11. #11 by limkamput on Friday, 27 November 2009 - 10:30 am

    I am not too sure, can PAC act pre-emptively? If PAC fails to act, what is PR’s alternative if they really want to stop this project?

  12. #12 by House Victim on Friday, 27 November 2009 - 7:20 pm

    1. Can such a Federal Project be approved outside the Parliament. just by the Cabinet or even only the ITI minister?

    2. Can Matrade be owner of the piece of land? Or, how can it become a piece of land under Matrade?

    From the case of Wangsa Baiduri, a taxi driver with the “Luck” of hooking-up with PKNS had turned a few acres of land into billionaire and get listed on Board. The mother of Developer scandal in Malaysia since 1984/6.

    The magic stated from
    1) The State Authority illegally alienated part of the Water Retention Poind of Subang Jaya to PKNS – a stealing of Public reserved land which should be restricted from residential developrment. The Rest of this water retention pond is in a Private Title issued to Sime UEP!!

    2) PKNS then joint-ventured with Emko to come up with a so called Condo Project. Before, sub-dividing the land to the Townhouse in the project, the Land of the Club house was transferred to the sister company of the Developer in 1987. With the help of MPPJ, it combined with half piece of land “misappropriated” from one of the neighbouring condo lots and turn it into an Hotel with book value at around 262million.

    2) Around 10 acres of land was said to transfer to Emko at around 7-8 million in 1989. An re-evaluation afterwards had turned into at least 15folds and thus enabling the “parent” company got listed in the KLSE board and be able to get continuous “mortgage” from the banks. A piece of 36,000 sq m of land (9acres) book valued in around 2000 is already 50million.

    3) Without facilities, they continue to charge the Townhouse Maintenance Charge and the building “Condo” service charge. They had sold membership on the club to outsiders for million.

    The Consequences:
    1. Stolen land, restricted for Residential had established a Listed Company of billions, getting money from Bank and the Public. Selling so called Condo but in reality – Apartment. Even strata Title were issued as such!!

    2. A bubble of Billions via the hands of the Government, into the mainstream of Malaysian Economic!!

    This does not only Risk the Law, the Economic, the Risk of Buyers and Residents.

    Malaysia Boleh!!

    LOL if this Matrade Scandal II cannot be stopped even with the Cries of a few MP. But, to be the Bullied by the Top Officers/Ministers under the Payroll of the Tax-payer Money, including GST to come!!

    Manipulation, outlawing have become part of the Government Culture carried by corruptions and…..

    Who dare to take Malaysian Government bond or to invest in Malaysia.

  13. #13 by monsterball on Saturday, 28 November 2009 - 4:30 am

    hahahahaha…You know they work fast is actually to get themselves faster to jail.
    Making sure voters do nit suspect.they work to show they care…just like all corrupted much so call work…no conclusions… saying no enough evidences.
    Live with that…till 13th GE.

  14. #14 by boh-liao on Saturday, 28 November 2009 - 9:46 am

    Don’t worry, things will go on same same, Umno way
    Eventually, very soon, 1M’sia will be like Dubai World having great impact on de world
    We just need one special straw that will eventually break the camel’s back
    Then de domino effect will ripple through de financial world
    Get ready your children 2 work as maids, nurses, drug mules, dvd resellers, gigolos, social escorts, GROs, Ah Long runners
    Already M’sia is at de crossroads of becoming a major market for amphetamine-type stimulants, M’sia truly boleh

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