Archive for category Corruption

New mega project: Mega question mark over procurement

by Koon Yew Yin
Centre for Policy Initiatives
Monday, 11 October 2010

I refer to the article ‘Transparency in MRT Planning’ by Risen Jayaseelan which appeared in a major newspaper recently on Oct 5. The purpose of my writing this piece is to forewarn the public and the government that the way this proposed project is being considered by the government is basically wrong and may well end up with taxpayers having to pay a much higher toll rate than justifiable.

This warning is not only for the MRT project but for all 131 projects that are being envisaged under the Economic Transformation Programme (ETP) which is supposed to transform Malaysia into a high-income nation.

Basically I see no change at all in the current procurement procedure which has been used before in large concessions. The results of the evaluation and bidding procedure for mega projects such as the current MRT, the power provided by IPPs, toll roads, and the Selangor water supply have seen the consumers being forced to pay unreasonable rates because the bidding and tender process has been riddled with opportunities for rent-seeking, corruption and wastage.

Besides, cheaper and more efficient alternatives have not been fully considered by the Government. Read the rest of this entry »

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Key political risks to watch in Malaysia

Oct 1, 10
Reuters/Malaysiakini

Malaysia has unveiled ambitious plans to boost its economy by mobilising hundreds of billions of dollars of private investment, although questions remain over whether the money will materialise.

Prime Minister Najib Abdul Razak’s cut in fuel, gas and sugar subsidies in August triggered a political backlash that may see him holding off more reforms ahead of the next general elections due by 2013.

Najib has pledged to reform the country’s subsidy bill to tackle the budget deficit. But he is wary of upsetting the country’s majority ethnic Malays, a critical votebank whose support will be vital as he tries to revive his ruling coalition which was hit by record losses in general elections in 2008.

Following is a summary of key Malaysia risks to watch:

Political conflict

Political tensions spiked after the 2008 general election when unprecedented opposition gains transformed the political landscape. BN coalition’s 52-year grip on the country was dented when it ceded control of five states and lost its two-thirds parliamentary majority to an opposition led by former Deputy Prime Minister Anwar Ibrahim.

The political uncertainty has weighed on foreign investment with net portfolio and direct investment outflows reaching US$61 billion (RM188 million) in 2008 and 2009 according to official data. Money has since flowed into the bond market according to central bank statistics, but little has flowed into equities.

What to watch:

• Opposition leader Anwar Ibrahim’s sodomy trial. Anwar says the case is a political conspiracy, and a contentious verdict would anger his supporters. Any marked increase in political tensions could see more foreign money pulled from stocks, bonds and the ringgit. But with limited foreign portfolio investment still in the country, the impact will be muted.

• Elections in the Borneo state of Sarawak, expected by the end of this year. The state’s chief minister has directed the ruling coalition to ready itself for state-wide polls, and analysts say nationwide elections could follow soon after. BN’s shock defeat in a May by-election in Sarawak raised doubts over its support levels in the state. Read the rest of this entry »

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Democracy only works when people claim it as their own

People first, democracy now!

By P Ramakrishnan

In a democracy worth its name, it’s the people who come first. The government exists for them and not the other way around as is happening now. We are made to believe that the people are there to do the government’s bidding. The government actually tells you that.

You vote for my man on Sunday, you will get a cheque on Monday. That’s what they told the voters in Ulu Selangor. In Sibu they told the voters, “You elect my man, I will pay for the flood mitigation project” – otherwise you can drown in the flood for all I care!

In other words, you will be rewarded if you serve the ruler; otherwise you will be punished. They don’t govern the country any more – they rule over you; they lord over you.

Is this what democracy is all about? Read the rest of this entry »

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Teoh Beng Hock, Did You Commit Suicide?

by Richard Loh

I am truly sorry, Sdr. Teoh Beng Hock, that I have to ask you this question, Did You Commit Suicide? Everyone knows that this is really a stupid question to ask but am I wrong? No, I am not wrong because this is the way how our government, macc, pdrm and the judiciary taught us, to be stupid.

When your family met up with the prime minister, he made a promise that your mysterious death will be fully investigated and ensured that no stone will be left unturned. With this promise, the prime minister should called for a royal commission of inquiry which your family and the public had wanted, instead, he called for an inquest. Why did he reject the RCI, simply because the chances of getting the truth of your mysterious death is very high. For an inquest, they have the upper hand to protect the guilty (if any), manipulate and fabricate, anyway, anyhow they wanted.

On the onset, the government, PDRM, MACC and the judiciary had already made up their mind to see that your mysterious death be concluded as committing suicide, that is, you took your own life. I came to this conclusion by judging the way they presented the case, the investigation by PdRM, the judiciary allowing the DPP to ridicule witness and articulation of imaginary theories. Read the rest of this entry »

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MACC “commits suicide”!

By Martin Jalleh

18 Aug. 2010 – The Malaysia Anti-Corruption Commission (MACC), very tragically, “committed suicide” today. It killed the very little that was left of its own integrity and credibility.

Its public image plunged to the very depths with the help of its advocate Abdul Razak Musa. He had at first advocated self-strangulation. He even demonstrated how it could be done.

When that failed, the very experienced lawyer of 24 years assisted the Commission to take a wild leap out of the window of logic, common sense and civility. Read the rest of this entry »

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How graft, racial-religious politicking killed Malaysia’s economy

By Wong Choon Mei, Malaysia Chronicle

In 2019, Malaysia would be 62 years old. If that is all it takes – just 62 years – for a nation to go bankrupt, then it only shows how grossly mismanaged the country has been.

Of the six prime ministers who have led Malaysia since 1957, the leader who must take the greatest blame for the sorry state the economy is now in is Mahathir Mohamad, whose 22-year rule alone accounts for nearly half of the nation’s post-independence history.

Thanks to his chase for mega projects, political opportunists and cronies were able to benefit from massive overpricing in almost all of the major deals that framed his career. From the North-South Expressway to Perwaja Steel, 1st Silicon to Proton, Bakun Dam to PKFZ, few of his projects have not ended up requiring some form of bailout from taxpayers at one time or another.

Read the rest of this entry »

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Will Mahathir or any of his Ministers in 2002 Cabinet testify in court of being misled by Ling to approve Port Klang Authority’s purchase of PKFZ land with 15-year repayment with compound interest instead of 10 years?

The charge preferred against former MCA President and Transport Minister, Tun Dr. Ling Liong Sik, in connection with the RM12.5 million Port Klang Free Zone (PKFZ) scandal has mystified many.

The charge against Ling reads:

“That you, between Sept 25 and Nov 6, 2002, at Level 4 of the Prime Minister’s Office in Bangunan Perdana Putra, cheated the Govern ment by deceiving the Cabinet into approving a land purchase in Pulau Indah for a Mega Distribution Hub project in Port Klang according to the terms agreed between Kuala Dimensi Sdn Bhd and Port Klang Authority which, among others, are:

  1. the size of the land being 999.5 acres or 43,538,200 sq ft

  2. the purchase price for the land being RM25 per sq ft amounting to a total of RM1,088,456,000

  3. the repayment period being based on a “deferred payment” of 15 years with an interest rate of 7.5% per annum (total RM720,014,600), and thereby dishonestly hiding the fact that the valuation by the Valuation and Property Service Department on the land was RM25 per sq ft for a repayment period of 10 years or RM25.82 per sq ft for a repayment period of 15 years, including coupon/interest that could be charged for the repayment period.

Read the rest of this entry »

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PKFZ scandal: Ex-transport minister Ling charged

Malaysiakini

Former transport minister Ling Liong Sik was today charged at the Kajang Sessions Court over his involvement in the multi-billion ringgit Port Klang Free Zone (PKFZ) scandal.

Ling, 67, who is also former MCA president, is by far the most prominent politician to be nabbed in recent years.

He is charged under Section 418 of the Penal Code with misleading the cabinet between Sept 25 and Nov 6, 2002 into agreeing to purchase 999.5 acres of land on Pulau Indah for a project, that is now known as PKFZ, at a price of RM25psf on a deferred payment method for a 15-year period, at a 7.5 interest rate.

The cumulative interest paid would total at RM720 million at the end of the repayment period.

He was also ffered an alternative charge under Section 417 of the Penal Code for the same offence.
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Call for reports of the PKFZ scandal “super taskforce” to be made public to account for actions taken by Najib administration in past year

The decision by the Transport Minister, Datuk Seri Kong Cho Ha to override the decision of the Port Klang Authority (PKA) and direct it to pay its Port Klang Free Zone (PKFZ) bond obligation of RM222.58 million to Freezone Capital Bhd (FZCB) is another proof that his topmost concern and those of the Najib Cabinet is to bail out the PKFZ turnkey contractor Kuala Dimensi Sdn. Bhd (KDSB) rather than to do justice to the 27 million Malaysian people in the RM12.5 billion PKFZ scandal.

The PKA Board had acted properly in expressing reservations on the payment of RM222.58 million to KDSB’s special purpose vehicle, FZCB, because of an RM1.4 billion ongoing suit and considering withholding payment because of its worry that it may not be able to recover funds from KDSB.

Kong’s decision is all the more deplorable as it has now been revealed that KDSB had given undertakings that it will cover any shortfall in bond repayments should PKA fail to do so, making it KDSB’s problem and not that of Malaysian taxpayers.
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Can Najib guarantee safety of ex-RMAF sergeant Thamendran while awaiting trial of theft of two jet-fighter engines?

It is another international infamy for Malaysia that former RMAF sergeant N. Tharmendran, 42, feels comparatively safer in Sungai Buloh prison while he awaits trial for the theft of two jet-fighter engines than to be out of jail.

It was only 11 days ago he was freed when he and his family successfully waged a six-month battle to reduce his RM150,000 bail to RM50,000.

It is a terrible indictment on the system of governance in Malaysia that a person should feel safer in prison custody than to be out as a free man, for fear of being abducted and tortured again by military intelligence officers, as Tharmendran had alleged that he had been previously detained and tortured by military intelligence for three weeks and the “favourite torture” was to make him wear a crash helmet where he was repeatedly hit as hard as possible.

Thamendran’s personal safety and welfare while he awaits trial for theft of two jet-fighter engines has again put national and international focus on “institutional degradation” which the New Economic Model had identified as one of the causes of Malaysia’s economic stagnation and “declining growth trajectory”.
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Where is the report of the Special Parliamentary Committee on Corruption on the first year of operation of MACC which is to be tabled and debated in present meeting of Parliament?

More than a month ago and before the start of the present meeting of Parliament, the Chairman of the Special Parliamentary Committee on Corruption Datuk Seri Mohd Radzi Sheikh Ahmad called for a parliamentary debate on its report on the first year of operation of the Malaysian Anti-Corruption Commission (MACC).

Radzi said allowing a parliamentary debate on the MACC would be a healthy development in improving the performance of MACC.

Under the MACC Act, the Special Committee on Corruption comprising MPs is to submit an annual report to the Prime Minister, who will then table it in Parliament.

The Special Committee on Corruption had completed its report. However, it is now at the end of the present meeting of Parliament which will end next week and there is no sign of the report of the Special Committee on Corruption being tabled in Parliament to enable a special parliamentary debate to be held in the current session.

This is most troubling and goes against all the talk of achieving the NKRA targets which includes eradication of corruption especially “grand corruption”, which means action against the “big fishes”.
Read the rest of this entry »

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Turning MACC into a law unto itself

By Tunku Abdul Aziz

A certain member of Parliament heading an MACC committee has suggested that MACC should not only be given more money, as if the tens of millions of ringgit of government funds already dished out are still insufficient, but also the power to prosecute cases investigated by that organisation itself. A monstrous idea even if the MACC had a reputation for the highest professional integrity which, of course, it hasn’t. The fact of the matter is that this much touted independent corruption fighting outfit modelled on the Hong Kong ICAC continues to be regarded with a degree of disdain.

The MAC does not enjoy the cachet and the public trust and confidence of the Malaysian public. Only corrupt politicians and public servants have complete trust in the MACC, but, sadly, for all the wrong reasons. Someone somewhere has to have his head examined for even thinking of making the MACC a law unto itself. Has the YB concerned not heard of the need for a system of checks and balances or the vital necessity of avoiding a conflict of interest situation in the conduct of public affairs as a means of reducing corruption? The whole harebrained suggestion is akin to allowing the Attorney-General to double as a judge in a case he has decided as AG to prosecute! He may well relish the idea, but will justice be served in the process? Or perhaps we don’t care.
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MACC cancels London interview with PI Bala

By Aidila Razak | Malaysiakini

The Malaysian Anti-Corruption Commission (MACC) will not record the statement of private investigator P Balasubramaniam in London after all.

Instead, it will submit questions to his lawyers and request that the witness responds in the form of an affidavit, MACC deputy commissioner Mohd Shukri Abdull told a press conference today.

“We will write to the witness’ lawyers tomorrow to inform them of the decision, and to submit the questions,” he said.

He said that the decision was made upon advice from the attorney-general’s chambers, after considering the Eric Chia case where a witness statement recorded overseas was not allowed to be tendered as evidence in the corruption trial.

According to MACC Legal and Prosecution Director Abdul Razak Musa, the decision not to record Balasubramaniam’s statement was also influenced by decisions on Thai pathologist Pornthip Rojanasunand’s testimony in the Teoh Beng Hock inquest.
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MACC gets a dirty dozen sacked in 2009

The Malaysian Insider

KUALA LUMPUR, June 23 — Only 12 out of the estimated 1.2 million civil servants were sacked rather than disciplined in 2009 in graft-related cases investigated by the Malaysian Anti-Corruption Commission (MACC) in its first year of operations.

According to documents made available to The Malaysian Insider, the MACC had forwarded 235 reports to the heads of government departments and agencies for disciplinary action in 2009.

However the MACC received feedback for only 182 cases, of which 90 or 49 per cent were given administrative warning.

And only 12 or 6.6 per cent of the public officials under probe were dismissed in 2009 although the MACC’s prosecution unit had sought disciplinary action be taken against the perpetrators.

MACC had also recommended that the government take a more proactive approach in its crusade against any breach of conduct in the country’s bloated public service.
Read the rest of this entry »

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Ku Li on corruption and Exocet missiles

Below is an extract of the speech by Umno veteran politician Tengku Razaleigh Hamzah at the launch of ‘The Shafee Yahaya Story – Estate Boy to ACA Chief’, a book written by Shafee’s wife Kalsom Taib.

The word ‘corruption’ comes from a Latin word meaning ‘to break’ or ‘to destroy’. Corruption is a cancer that steals from the poor, eats away at governance and moral fibre, and destroys trust.

Although corruption exists in both the private and public sector, the corruption of the public sector is a more fundamental evil. This is because the public sector is the enforcer and arbiter of the rules that hold us together, the custodians of our common resources.

It is time we recognise corruption as the single biggest threat to our nation. In our economy, corruption is the root of our inability to make the economic leap that we know we are capable of. There is no other reason why a country so blessed with natural resources, a favourable climate and such immense talent should not have done a lot better than we have.
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‘When will PKFZ probe be done – Resurrection Day?’

By S Pathmawathy | Malaysiakini

Though the newly-appointed Transport Minister Kong Cho Ha has said there is no need to look further into the Port Klang Free Zone (PKFZ) fiasco, opposition veteran Lim Kit Siang (DAP-Ipoh Timur) has refused to let the matter go.

The DAP veteran politician during the question-and-answer session in the Dewan Rakyat, demanded to know why then-Transport Minister Chan Kong Choy has not been probed despite being implicated by the Public Accounts Committee (PAC) in the controversy.

The PAC had recommended in its report on the PKFZ controversy last year that Chan be probed for criminal breach of trust (CBT) over his allegedly wrongful issuance of three letters of support.

Chan was said to have issued the letters of support for a turnkey contractor without the approval of the Finance Ministry to raise funds for the PKFZ project, costs of which may balloon to a whopping RM12.5 billion.
Read the rest of this entry »

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RM12.5 billion PKFZ scandal – More stonewalling

Tweets @limkitsiang:

My Q in Parl – progress in MACC campaign agnst ‘grand corruption’ n Y no big fish in PKFZ scandal nabbed?
Wednesday, June 09, 2010 10:02 AM

But as expected Stonewalling answer saying MACC investigating although I reminded House of AG saying last Dec that more arrests 2come RT @beyondrock Now that is a good Question
Wednesday, June 09, 201010:29 AM

Asked why no action on PAC proposal agnst exTransp Minister ChanKongChoy 4CBT 4issue illegal LettersOfSupport DepMin LiewVuiKeong was silent
Wednesday, June 09, 2010 10:40 AM

AGGani said Dec re PKFZ:”This is just tip of d iceberg..just 1st phase of investigations..certainly not end of matter but just beginning..Other individuals will b charged in stages” Now nothing after >6mths
Wednesday, June 09, 2010 10:50 AM

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With 2 out 5 civil servants deemed corrupt by CUEPACS, the MACC is a big flop as it did not even arrest 0.1 per cent of the corrupt civil servants last year

Cuepacs President Omar Osman said in Temerloh last night that a total of 418,200 or 41 per cent of the 1.2 million civil servants in the country were suspected to be involved in corruption last year.

This is the Bernama report last night:

41 Per Cent Of Civil Servants Suspected Involved In Graft Last Year – Cuepacs

TEMERLOH, June 2 (Bernama) — A total of 418,200 or 41 per cent of the 1.2 million civil servants in the country were suspected to be involved in corruption last year, said Cuepacs president Omar Osman.

He said this was worrying and needed to be tackled urgently.

“To combat the scourge, Cuepacs will work closely with the Malaysian Anti-Corruption Commission so that civil servants involved in corrupt activities can be brought to book,” he told reporters after opening the triennial general meeting of one of the affiliates of the umbrella union, here Wednesday.
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Re: Idris Jala: M’sia must cut subsidies, debt by 2019 or risk bankruptcy

Letters
by Sara Wak

Dear YB Idris Jala and Koh Tsu Koon,

For the last many years, the BN Govt has been handing big ang pows to the rich Malays who are given APs, and it has been said by the BN Govt that this practice will go on until 2013 0r even 2014!

Why can’t the Govt control the issue of APs to people who want to import cars? The govt can collect RM30,000 to RM40,000 on each important cars. Why must the BN Govt decides to pass the right to collect these payments to only a handful of rich Malays?

How many APs are issued to these rich Malays a year ? Like what Rafidah did when she was minister , in giving APs and shares to her relatives?

The Malaysian Economy has deteriorated so much for the last decade because of all these handouts to the UMNO cronies. Malaysia was ahead of Korea, Taiwan and Singapore, and look at it now, it is even behind countries like Thailand, Vietnam and others in Asia !
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Inspector-General of MACC: Have we gone mad?

By Tunku Abdul Aziz

The very idea that the headman of the MACC be accorded a status equivalent to that of the Inspector-General of Police was so hilarious that I, a grown man, was driven to sobbing uncontrollably before I doubled up, laughing my head off. I have, in my lifetime, been through many strange and unusual situations, but I must confess to a sense of incredulity that members of the Anti-Corruption Advisory Board headed by former Chief Justice Tun Abdul Hamid Mohamad were prepared to risk their collective reputation by putting this recommendation forward. It is absurdity personified.

The other recommendations, including the establishment of a statutory commission on appointments, and the need to have interrogation rooms equipped with CCTV cameras, must rank as among the most facile suggestions ever made by a group of people who lay claim to expert knowledge and experience of a level considered sufficient to justify their being appointed to the advisory board.

In the event, by their earth-shattering recommendations, they have confirmed what I have known all along: they know nothing about fighting corruption or, for that matter, the chief commissioner, if he had to be “advised” on what equipment was needed to be put in place to make the interrogation process more open and transparent, then he has no business to be there in the first place. I make no apology for using the word interrogation in relation to the methods adopted by the MACC when dealing with witnesses. The word interview is yet to be part of the MACC’s corruption fighting lexicon.
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