Four BN politicians + Bintulu MP in RM7.5 bil scandal

Discussions General
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Aiyoo Bintulu MP Datuk Seri Tiong King Sing is said to be at the center of the controversial RM7.5 Port Klang Free Trade Zone. The project initially estimated to cost RM1.9 billion ballooned to RM7.5 once Tiong’s company Kuala Dimensi Sdn Bhd completed the project over a year ago.

The four were Deputy Finance Minister Datuk Chor Chee Heung, Sementa assemblyman Datuk Abdul Rahman Palil, Backbenchers Club president also Bintulu Member of Parliament Datuk Seri Tiong King Sing and Federal Territory Umno treasurer Datuk Seri Azim Zabidi.

Datuk Chor Chee Heung was the Port Klang Authority (PKA) chairman from April 2007 to March 2008 while Abdul Rahman was a board member of the authority from 1997 to 2003.

The Star said, report by PricewaterhouseCoopers (PWC) raised the question whether there was a possibility of a conflict of interests because Chor had also served as Wijaya Baru Global Berhad (WBGB) non-executive deputy chairman from April 2004 till July 2007.

WBGB is the parent company of Wijaya Baru Sdn Bhd (WBSB), the main contractor for PKFZ turnkey developer Kuala Dimensi Sdn Bhd.

Minutes of the (PKA) board did not indicate that Chor either declared his previous involvement in WBGB to the (PKA) board nor withdrew himself from deliberations, the PWC report said.

As for Tiong, the PWC report named him as a 32% shareholder of WBGB, which in turn has a 45% stake in WBSB, the main contractor to the turnkey developer, Kuala Dimensi.

Tiong is also 70% shareholder of Wijaya Baru Holdings Sdn Bhd, which is the sole proprietor of Kuala Dimensi…

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Good news!!!

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[size=150]PricewaterhouseCoopers reveals wide-ranging critique of how the PKFZ project was mismanaged[/size]

Rising costs, checks lacking

The cost of the Port Klang Free Zone (PKFZ) escalated from RM1.9bil to RM3.5bil, and including interest costs, total project outlay would total RM7.5bil, according to a study by PricewaterhouseCoopers Advisory Services Sdn Bhd (PwC).

The interest costs include interest on deferred payments to Kuala Dimensi Sdn Bhd (KDSB), the turnkey developer for PKFZ, and interest on a 20-year soft loan from the Ministry of Finance (MOF).

Cashflow projections prepared by the Port Klang Authority (PKA) showed it would be in a cash deficit position from 2012.

If repayments to the MOF are rescheduled to match PKAs projected cashflow, the latter would incur additional interest costs of about RM5bil. That would further increase the project outlay to RM12.5bil, PwC said.

PwC was engaged to provide a position review of PKFZ and Port Klang Free Zone Sdn Bhd, with its scope of work limited to a review of authority to enter into agreements pertaining to the PKFZ project, the financial implications and PKAs ability to pay KDSB and the MOF.

Its terms of reference do not include advising on strategy or valuation, and it did not investigate to detect any wrongdoing.

The report is a wide-ranging critique of a project that was implemented with disregard to governmental procedure, excessive costs, lack of masterplanning, governance and open tenders.

PwC observed PKAs approach to the project was that being a turnkey development, the onus was on KDSB to deliver the completed works to PKA, with minimal supervision.

Port Klang Free Zone (PKFZ)
The proposal to purchase the land was approved by the Cabinet. However, subsequent development proposals were not tabled to the Cabinet for approval even though the total development costs of RM1.8bil, excluding interest, exceeded the cost of the land of RM1.088bil, excluding interest.

That, together with variation orders, additional development works and professional fees, added up to a total project outlay of RM3.5bil, excluding interest.

PwC noted that a development agreement was entered into on an estimated sum of RM1bil without any detailed plans. Further development contracts totalling RM1.8bil were all awarded to KDSB without competitive bids, it said.

Tracing the course of events, PwC said that in 2002, following the endorsement by the PKA board to buy the land from KDSB for RM1.088bil, the proposal was tabled to the Cabinet by the Transport Minister.

The Cabinet approved the proposal on condition that PKA was able to finance the purchase from its own funds, PwC said.

PKA subsequently entered into several agreements with KDSB for the latter to develop 1,000 acres for RM1bil (2004), additional development works for RM510mil (2005) and new additional development works for RM335mil.

PwC noted the auditor-general pointed out in its 2003 audit report that PKA did not have sufficient funds to finance the project.

PKA should have alerted the Cabinet of this. Instead, PKA entered into other very significant development agreements after that.

The masterplan prepared by Jebel Ali Free Zone International (Jafzi) and The Services Group Inc (TSG) recommended multiple phases over eight years for light industrial units.

However, PKA entered into a single phase RM1bil development contract with KDSB in March 2004, nine months before the Jafzi/TSG masterplan was finalised.

The entire project was completed within 24 months, resulting in an excess capacity of light industrial units.

The occupancy rate of the light industrial units was only 15% at the end of last year.

Significant financing cost could have been avoided had PKA adhered to the Jafzi/TSG masterplan and its recommendation for phases development, PwC said.

PwC also noted that PKA agreed to accept higher interest rates than those originally contracted.

The interest rate of 7% a year in the first development agreement increased to 7.5%.

Further, the interest rate of 5% in the first additional development works increased to 7.5% in the second additional development works. This was higher than the rates of 5.25% to 6.15% in the bonds issued by KDSB

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tak dapat ape la kalau macam ni

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No wonder all these guys getting richer and richer… they are good at sucking all the money into their own pocket.
These politicians should be relieved of their existing portfolios pending final investigations.

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Here is how BN=Tiong (SPDP) + MCA+UMNO pocketing billions of Malaysian taxpayers money according to Reuters. Tiong is given prominent in the report as he own the majority stake at Kuala Dimensi.

However Tiong is well like by the rural voters in Bintulu and known to be generous. What they didn’t know all along is that while he gave out in thousands of ringgit from his left hand - he took back in millions from his right hand. Shrewd politician :lol: :lol:

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pangkah lagi…pangkah lagi…

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They will ‘pangkah lagi’, u know why?

They will tell public that if you don’t like me, ‘pangkah saja saya’. :mrgreen:

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They will ‘pangkah lagi’, u know why?

They will tell public that if you don’t like me, ‘pangkah saja saya’. :mrgreen:[/quote]

Hahaha… either way, still a winner :mrgreen:
This guy can speak fluent iban and is popular among the iban people.

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PORT KLANG, May 29 The DAP wants the government to cut its losses in Port Klang Free Zone (PKFZ) that faces at least RM8.6 billion in future losses and have asked it to close shop, even if it means declaring the Port Klang Authority (PKA) bankrupt.

After a team led by its parliamentary leader Lim Kit Siang had spent four hours at the PKA headquarters perusing the full report on the RM7.5 billion already spent, they concluded that the government should “bite the bullet and end the project, even if it means declaring PKA bankrupt.”

Party information chief Tony Pua explained that if the statutory body liquidated its assets, it could reduce losses to around RM3 billion from the RM4.6 billion already sunk in by the Treasury.

According to the report by PricewaterhouseCoopers (PwC), PKA is already servicing a government loan but operating losses will see it unable to meet payments by 2012.

It will only turn around in 2042. By then, it would have racked up a cumulative loss of RM3.6 billion.

PKA will need to refinance the loan and lose RM5 billion in interest payments, resulting in a total RM8.6 billion bailout by the government.

“Even this is a best case scenario because the calculations are based on projections that PKA provided,” Pua said.

He pointed out that according to these same forecasts, PKA had expected 20 per cent occupancy in the light industrial areas today, but it currently stands at 14 per cent.

He also disclosed that the only major shipping line using Port Klang as a regional hub, CMA & CJM, was planning to move to Tanjung Pelepas in Johor, saying “expecting it to be 40 per cent in 2011 and then full occupancy in 2014 is extremely optimistic.”

Lim had earlier expressed disappointment with the report as its scope was restricted and while it named a few “middling characters,” he said “the bigger story is the top VIPs” who are “puppet masters.”

"Transport Minister Datuk Seri Ong Tee Keat had promised to tell all but knowing full well the questions posed before the report was commissioned, this is a grave injustice.

“We know it goes higher than this,” he said, adding that a royal commission of inquiry should look into the roles of those in power when the project was being conceptualised in 1999 onwards.

This includes previous transport ministers Tun Dr Ling Liong Sik and Tan Sri Chan Kong Choy as well as then Prime Minister Tun Dr Mahathir Mohamad.

“It is an astronomical rip-off. The can of worms has turned out to be a pit of crocodiles and alligators,” Lim declared.

He added that immediate action should be taken against those named in the report, including three active Barisan Nasional politicians, its backbenchers chief Datuk Seri Tiong King Sing, Deputy Finance Minister Datuk Chor Chee Heung and Sementa assemblyman Datuk Abdul Rahman Palil, who is a former Selangor state executive councillor.

He said that there was “no point” in filing a report at the Malaysian Anti-Corruption Commission (MACC) as PKA chairman Datuk Lee Hwa Beng had done this morning.

“Our Selangor executive councillor Ronnie Liu has already lodged four police and MACC reports. What have they done? In fact, Liu will later lodge a report on MACC at the MACC,” the Ipoh Timur MP added.

The party’s Selangor vice-chairman Charles Santiago called for those involved to be suspended from their positions and have their bank accounts frozen pending investigations.

The Klang MP expressed shock at the amount of wastage and believes there has been political pressure and collusion to keep the 10-year saga quiet.

“It is a colossal failure of our regulators and governance,” he said.

“Given the global and financial crisis that has hit Malaysia’s shores, RM7.5 billion is more than the government’s first stimulus package and RM12.5 billion is over one-fifth of the second package.”

Source

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They will ‘pangkah lagi’, u know why?

They will tell public that if you don’t like me, ‘pangkah saja saya’. :mrgreen:[/quote]

Hahaha… either way, still a winner :mrgreen:
This guy can speak fluent iban and is popular among the iban people.[/quote]

true. though this matter/scandal arises, he’s really taking care of the welfare of lots of rumah panjang in bintulu and sebauh area. :slight_smile:

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[quote=“vertigo”][quote=“HandsomeGuy”]
Hahaha… either way, still a winner :mrgreen:
This guy can speak fluent iban and is popular among the iban people.[/quote]

true. though this matter/scandal arises, he’s really taking care of the welfare of lots of rumah panjang in bintulu and sebauh area. :)[/quote]

Anyway, he needs their vote. How much does these rumah panjang really need? RM1K, 2K, 5K or 10K per long house?
The contract amount /money can be used for the development of the whole of Sarawak in general.

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hahaha
tipu makan punya orang

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give u RM1, take RM 100 from you.

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They will ‘pangkah lagi’, u know why?

They will tell public that if you don’t like me, ‘pangkah saja saya’. :mrgreen:[/quote]

Hahaha… either way, still a winner :mrgreen:
This guy can speak fluent iban and is popular among the iban people.[/quote]

coz Iban easy to bride. no matter how they hate the leader, just give 'em RM50…you win.
some as low as RM10.

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Our BN YB also “makan duit le”. Road project 41km range cost rm100 mln for come with nothing only get better “bila pilihanraya” jkr came just “potong rumput” n cms came just " ukur jalan"… hahahha now come with rm1.3 bln budget and our BN YB boleh makan lagi kenyang…

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Everytime see those politicians “donate” money to certain charitable bodies, schools or associations… when they donate, all the newspaper reporters came and the news masuk newspaper… showing that these politicians concern about the people as though they are donating their own money.
Actual fact, its all the tax-payer money they donate in order to get fame and recognition…

Then there are those SUPP’s party dogs working hard for their politicians, and in return, they get what they wanted… contracts, land, projects, etc…

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In a laissez fair term - there’s nothing wrong in the PKFZ scandal. Firm (Tiong’s Kuala Dimensi Sdn Bhd) always want to maximize their profits. For example the land for PKFZ were bought by Port Klang Authority exceeded market value. Of course Tiong and cos would love that. They acquired the land for RM3 psf and sell it to PKA for RM27psf to maximise their profit.

Itu baru - land acquisition. Read the report to know more. There were tons of taxpayers money wasted developing the PKFZ. To give it a perspective - Putrajaya was developed using RM20 billion - PKFZ only a small township nearly half of Putrajaya cost - better still this - Sarawak only allocated RM3-4 billion under the 10 Malaysia Plan whereas Tiong and Co get twice the amount of what Sarawak get from Federal government :smiley:

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I don’t get this. What are you trying to say here?

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The Public Accounts Committee (PAC) will summon the transport minister, his two predecessors and the attorney-general to testify over the PKFZ scandal, in an investigation which could have serious political consequences for MCA and the Barisan Nasional (BN) administration.

The parliamentary panel will also call Kuala Dimensi Sdn Bhd (KDSB) chief executive officer and Barisan Nasional Backbenchers chairman Datuk Seri Tiong King Sing to answer questions on the Port Klang Free Zone fiasco.

All of them will be called in to testify in two weeks time.

The decision was made at todays meeting which was meant to finalise the set of questions to be asked of those who will be summoned in two weeks time.

PAC chairman Datuk Seri Azmi Khalid said although they will be called in to testify, this does not mean that they are guilty.

They are not necessarily guilty, but we are calling them to be assured, Azmi told The Malaysian Insider in Parliament today.

When asked how many individuals had been called to testify, he said he was not sure but quite a number which includes senior civil servants and former ministers.

The PAC is conducting an investigation into how PKFZs initial cost of nearly RM2 billion could rise to RM12.5 billion because of various discrepancies.

The scandal first surfaced in 2007, and disclosures so far show that the fiasco straddles the tenures as transport ministers of Datuk Seri Ong Tee Keat, Datuk Seri Chan Kong Choy and Tun Dr Ling Liong Sik.

It was also decided that the testimony of Datuk Gani Patail, the AG, would be relevant because he was privy to government information on the scandal.

Last week, the Malaysian Anti-Corruption Commission (MACC) head Datuk Seri Ahmad Said Hamdan had testified before the PAC.

But the head of the anti-graft agency refused to answer most questions thrown at him over its ongoing probe.

Ahmad Said stonewalled the bipartisan parliamentary committee by repeatedly citing legal provisions which he said prevented him from giving specific answers to questions from the lawmakers.

The Malaysian Insider understands that PAC members have yet to receive copies and appendices of the PriceWaterhouse Cooper report on PKFZ despite the exertion of pressure on Parliaments secretariat and the transport minister to do so.

The DAPs Lim Kit Siang, who has led a vocal campaign against Ong over the scandal, blasted the transport minister and accused the latter attempting to black out incriminating and significant information from reaching the public.