by Richard Yeoh

This morning, when I parked my car at the KL Sentral aeroport departure kerbside for 3 minutes to drop off someone to take the ERL aerotrain to KLIA, I was confronted by a worker who insisted on clamping my car despite the fact that I was about to move off.

I had to seek the intervention of a supervisor who insisted that ERL SB was entitled to clamp cars stopped at the kerbside. According to him, cars will only be released upon payment of a RM50 fine. In my case, fortunately the supervisor had the sense to use his discretion to release my car, but not without argument. They even had the temertiy to issue me a “summons” which I shall be happy to fax or scan to you.

This action raises various issues:

1. Is ERL authorised by law to take such action? Is the driveway in front of KL Sentral private property under ERL jurisdiction? Is ERL the proprietor of the driveway?

To the best of my knowledge, even the Police, DBKL and MBPJ do not resort to such action unless the vehicle is causing obstruction.

I noticed that even city police usually allow a grace period of 5-10 minutes before cars are summoned for parking offences.

2. How can ERL take such action when there are no clearly-visible warning signs?

3. Is this the way to encourage travellers to use the aero-train to KLIA?

Would appreciate your readers’ views on this.

Transport Minister, Datuk Seri Chan Kong Choy should resign as Transport Minister if he is not prepared to break his four-year silence on the RM4.6 billionh Port Klang Free Zone (PKFZ) scandal or secure Cabinet approval on Wednesday to establish a Royal Commission of Inquiry to bare all the facts about the scandal.

Since becoming Transport Minister 2003, Chan had studiously ignored queries about the multi-billion ringgit malpractices and cost overruns at the Port Klang Free Zone, which had ballooned from a RM1.1 billion “self-financing” project which did not require a single sen of public funds to a RM4.6 billion scandal requiring government bail out using taxpayers’ monies.

As the latest Sun expose on the PKFZ scandal revealed today, “red tape, political meddling, inaccurate minutes and attempted tax evasion real reasons Port Klang Free Zone deal collapsed”.

Sun reporter R. Nadeswaran said in his commentary, “Bring PKFZ culprits to book”:

It was then the biggest financial fiasco in the country’s history — the Bumiputra Malaysia Finance (BMF) scandal of the Eighties which prompted the government to set up a Royal Commission of Inquiry. The amount involved was less than RM2 billion.

Today, we have on our hands a scandal that would put the BMF affair in the shadows. More than RM4.6 billion has been spent on the Port Klang Free Zone (PKFZ), and behind the massive expenditure is an intrigue of family deals, demands, interference by politicians and government officers with vested interests, attempts at tax evasion, gigantic cost over-runs, unauthorized payments, influence peddling, cloak-and-dagger operations, and above all, a total lack of transparency and accountability and care-a-damn attitude by the key personalities involved.

When Datuk Seri Abdullah Ahmad Badawi became Prime Minister, he had promised an end to such scandals of corruption, abuses of power, malpractices and total unaccountability. Read the rest of this entry »

The RM4.6 billion Port Klang Free Zone (PKFZ) scandal will be top agenda in the forthcoming parliamentary meeting — as I have submitted a question asking the Finance Minister to explain in the first week of next Parliament later this month why the multi-billion ringgit malpractices and cost overruns were not checked despite warnings from Attorney-General and Auditor-General.

I also wanted to know whether the Federal Government has now decided to bail out the RM4.6 billion PKFZ project with taxpayers’ money.

It is most regrettable and irresponsible on the part of both the Finance Minister and Transport Minister that they had maintained a deafening silence despite many disturbing reports in the past two months about the RM4.6 billion PKFZ scandal — in particular recent reports in Malaysiakini and Singapore Business Times, viz:

• That the development costs for PKFZ have ballooned to RM4.63 billion from the original estimate of RM1.1 billion;
• That the government has to step in to salvage the 405-hectare PKFZ project with a bail-out package as a result of massive cost overruns;
• The PKFZ had been approved on the assurances that it would both feasible and self-financing. It has proved to be neither.
• The controversy over the purchase of the 1,000 acres of land for the PKFZ, with the Finance Ministry and Attorney-General Chambers proposing forcible land acquisition at official valuations — then RM10 a sq foot — but the port authority got its way to buy it at RM25 per sq foot on a willing-buyer-willing-seller basis and the Transport Ministry’s assurance that the PKFZ would be both feasible and self-financing.
• The multi-billion ringgit cost overruns were unauthorized and therefore illegal as any RM100 million increase in a project’s cost had to be approved first by the Ministry of Finance, which had not been done.
• The Transport Minister had illegally and without sanction from the Finance Ministry issued letters of support to enable Kuala Dimensi, the private company tasked by the Port Klang Authority to develop the site, to issue bonds in excess of RM4 billion to cover its costs — the totality of which have now to be bailed out by the Federal Government. The unauthorized and unlawful letters of support by the Minister of Transport “were instrumental in getting the bonds at the time a triple-A rating” as such letters “are akin to government guarantees”.
• The Cabinet has ordered the Chief Secretary to investigate whether the Transport Ministry had wrongly issued the letters of support which has resulted in the RM4.6 billion PKFZ scandal.

Has the Prime Minister, Datuk Seri Abdullah Ahmad Badawi given his approval for the first multi-billion ringgit bail-out operation in his premiership? Read the rest of this entry »

by Damien Thanam

Two weeks ago I heard from TV3 news and read in the papers how close we (Malaysia) are to the China and to prove this diplomatic brotherhood, the People’s Republic of China is ready to allow one of its state run bank to loan a generous RM850 million for the construction of the 2nd Penang Bridge..

It was a proud moment for the Chief Minister of Penang & our top leaders as they are very sure that they have secured that amount from the soon-to-be No. 1 country in the world if China’s economic growth is steady in its current up-trend momentum.

But the people of Malaysia will be in-debt with China for a long period with the announced so-called generous interest rate that is being given for this loan. As a Malaysian, I would like to ask my government in particular its fund managers i.e Prime Minister who is also the Finance Minister, Deputy Prime Minister, the Second Finance Minister, the Governor of Bank Negara and Inspector General of Audit –

*Why did the government waste RM400 million (actual amount unknown) for nothing to pay the developer of Gerbang Perdana after scrapping a project that was nearing completion?

*Is the government going pay an estimated RM500 million to the contractors of the scrapped incinerator plant in Broga too?

The above two settlements alone could avoid the Penang Bridge loan from China & with an additional RM50 million to be used to upgrade environmentally-friendly public transportation in the Northern region.

Wasn’t the cost of building the 2nd Penang Bridge included in 9th Malaysia plan, if yes, then why is the goverment taking a loan to build it? If not, why wasn’t it?

The government has also awarded (as far as I know) a USD7 billion plus, 300 kilometres oil-and-gas pipeline project to a company with a paid up capital of RM100,000.00 and posted a loss of 150% more than what the company was shown to be paid up for!

What will happen if the pipeline project gets scrapped, will Malaysia have to pay USD3.5 billion to this company for a project that it has not even laid a single brick for? Read the rest of this entry »

by Richard Teo

History has an uncanny way of repeating itself. During Mahathir’s tenure as PM the construction of the North-South Expressway in 1984 was awarded to UEM (owned and controlled by UMNO) on the basis of a design-build-finance and operate concept.

Although the lowest tender bid was $3.2 billion, UEM was awarded the contract. Prior to completion,construction costs escalated to a phenomenal $6 billion. The escalated cost which normally would be borne by the turnkey contractor was underwritten by a govt soft loan.

This effectively meant that a competitive bid for a project which would cost $3.2 billion ended costing $6 billion. Presumably,the toll collection period had to be extended from an initial 15 years to 30 years to accomodate the doubling of the project cost.

The burden for the extra cost was shifted to the road users who now have to content and endure the paying of road toll for an extra 15 years (1988-2018). Later, in exchange for changing the increase in toll rate from every year to every three years, the concession period was further extended for another 12 years(2018-2030).

Had the contract awarded to the lowest bid at $3.2 billion was accepted, the govt would have saved $2.8 billion (or a shorter toll collection peiod of 15 years).

However, with its questionable practice of awarding the contract to a dubious company closely associated wih the ruling UMNO party, the ordinary citizen is bogged down with an additional period of 27 years to pay for the usage of the North-South Expressway.

Come 2007 and the cycle is about to repeat itself again with the award for the construction of the Penang second bridge. There was no tender for the project and it was speculated the bridge would cost RM2.3 billion. However, even before it got started, NST June 24th reported that the bridge would now cost RM3 billion. Read the rest of this entry »

In a written answer to the DAP MP for Batu Gajah Fong Po Kuan yesterday, the Foreign Minister Datuk Seri Syed Hamid Albar revealed that in his 3 years 8 months as Prime Minister, Datuk Seri Abdullah Ahmad Badawi had made 83 official visits overseas (including his most recent visits to Russia, Bosnia and Herzegovina and Italy) —

2004 – 22
2005 – 25
2006 – 20
2007 – 16

One message from the answer is that Abdullah has not only three portfolios of Prime Minister, Internal Security Minister and Finance Minister, he has a fourth portfolio as the traveling de facto Foreign Minister.

Malaysians do not begrudge Abdullah making overseas visits but it must not at the expense of neglecting his duties as Prime Minister, Internal Security Minister and Finance Minister and in particular his 2004 general election pledge to head a clean, incorruptible, efficient, just, democratic, people-oriented administration prepared to hear the truth from the rakyat.

Abdullah should revamp his time-management to ensure that his frequent trips abroad does not result in his neglecting his duties as Prime Minister, Internal Security Minister and Finance Minister as there are more and more disturbing evidence of this happening, viz:

• The most important agenda of the Abdullah administration to wipe out corruption fizzling out, highlighted by the ignominous dismissal of the Eric Chia corruption case without defence being called because of the failure of the prosecution to establish a prima facie case but also by the relentless drop of Malaysia’s ranking in the Transparency International Corruption Perception Index from 37th to 44th placing from 2003 to 2006 and which is likely to plunge further this year; Read the rest of this entry »