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Economics/Business Malaysia Malaysia's Port Storm | Malaysia's Port Storm |
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| Written by Our Correspondent | |
| Monday, 24 August 2009 | |
 The Malaysian Anti-Corruption Commission dances gingerly around a huge scandal
Malaysia's Anti-Corruption Commission has been tireless in the pursuit of wrongdoers, particularly those from the opposition Pakatan Rakyat coalition that controls Selangor, Malaysia's richest state. But somehow – perhaps just an oversight – the MACC has been dawdling for five years on a case that appears to be one of the biggest scandals ever to hit a country that has generated some spectacular ones. That is the RM7.45 billion (US$2.12 billion) cost to turn Port Klang, the seaport 70 km. west of the capital of Kuala Lumpur, into a national transshipment hub to rival the Jebel Ali Free Zone in Dubai. Its directors say it is likely to default on billions of ringgit in loans, with the possibility, according to an auditor's report, that accumulated interest could drive the cost to a whopping RM12.45 billion. Conceived in 1999, the Port Klang Free Zone was yet another massive development scheme put forward by former Prime Minister Mahathir Mohamad although he had left office before the real carnival began. The project appears to have ignited a virtual feeding frenzy for politicians from the Barisan Nasional, or ruling national coalition. The port development was awarded as a turnkey project without competitive bid to well-connected political cronies of the United Malays National Organisation and the Malaysian Chinese Association, the two biggest components of the Barisan Nasional. Project outlays, originally projected at RM1.95 billion, ballooned to RM3.52 billion, with interest accounting for another RM3.9 billion by 2012. The parties to the contract have fallen on each other, describing illicit payments and filing lawsuits. The squabble appears set to wreck what is left of the MCA, already in disastrous shape after the electoral drubbing it took in March 2008 elections. The case stands in vivid contrast to the MACC's zeal in prosecuting opposition politicians from the Selangor state government. As many as six or seven have had their office records dealing with constituency expenditures taken away for investigation. The most publicized of those was State Executive Councilor Ean Yong Hian Wah, whose aide, Teoh Beng Kock, died on July 16, either by suicide or other means, after undergoing a marathon questioning session in the MACC offices over RM2,400 worth of flags the lawmaker handed out to his constituents during a Merdeka (Freedom) Day celebration. An anonymous letter written on MACC stationery was released to the press last week, accusing Hishamuddin Hashim, an MACC deputy director for Selangor state, of conspiring with Mohammad Khir Toyo, a leading United Malays National Organization politician and former chief minister in Selangor state, to start corruption probes into opposition politicians. Khir Toyo has denied the charge. Opposition Democratic Action Party officials have been accused of fabricating the letter. Its origin is currently under investigation by police. Certainly, there appears to be plenty about the Port Klang development for the MACC to investigate. The project is mired in controversy and name-calling, with Tiong King Sing, the head of Kuala Dimensi Sdn Bhd, the company given the turnkey contract to build the massive facility, saying he had paid RM10 million in three installments to Ong Tee Keat, the head of the MCA, "for activities related to the MCA. Tiong is a leader of the Sarawak Progressive Democratic Party and head of the influential Backbenchers Club in the Dewan Dakyat, or parliament. Ong, also the transport minister, is offering to sue Tiong for his assertion that he had channeled money to Ong. Other MCA stalwarts are seeking to oust Ong from his leadership position, further fracturing the party. Kuala Dimensi in turn is wholly owned by Wijaya Baru Sdn Bhd, which is the main contractor to Kuala Dimensi. Wijaya Baru is controlled by Wijaya Baru Holdings Sdn. Bhd. Azim Mohd Zabidi, the former UMNO treasurer, is chairman of Wijaya Baru Global Bhd. Chor Chee Heung, former deputy was former deputy home minister under Mahathir, who was home minister and fiance minister at the time. Chor was the Wijaya Baru Global non-executive deputy chairman from April 2004 till July 2007. "This Port Klang FreeTrade zone is a colossal mess, with billions upon billions gone missing. It was earmarked for the MCA and the Chinese community," said a lawyer with links to the United Malays National Organization. "Many MCA/Chinese contractors benefitted from the deal. It has been an issue for the last six years, but only now has it become explosive." Opposition member Ronnie Liu, a DAP official, lodged a police report with the MACC on the scandal as early as 2004. The DAP has lodged a series of other reports in the intervening years, said a spokesman for the Pakatan Rakyat, the opposition coalition headed by Anwar Ibrahim. None of the requests, the spokesman said, elicited any response from the authorities. Recently Ahmad Said Hamdan, the chief commissioner for MACC, declined to answer questions in a parliamentary accounts selective committee hearing into the Port Klang scandal, saying the case is still under investigation. The story was broken wide open, however, with the recent publication of a 51-page confidential report into the port's finances by the international accounting firm PriceWaterhouseCoopers. The report, dated Feb. 3, was "not intended for general circulation or publication. It must not be reproduced, republished, copied, distributed, excerpted, disclosed, quoted, alluded or referred to, whether in whole or in part, to any other party in any way without prior written consent of PricewaterhouseCoopers Advisory Services Sdn Bhd (PwCAS)." However, selected parts were indeed excerpted, disclosed, quoted, alluded or referred to by the opposition, and since been given wide distribution. Among other things, according to the report, which was obtained by Asia Sentinel, "…significant project costs, weak governance and weak project management have severely undermined the viability of the project. It is imperative that (the Port Klang authority) take immediate actions to restructure the (ministry of finance) soft loan of RM4.632 billion to avoid a potential default in 2012. The Government of Malaysia would need to make a concerted effort to turn the Port Klang Free Zone into a viable venture." The report names a veritable rogue's gallery of MCA and other officials involved in the development of the project including two former transport ministers, Ling Liong Sik, the former MCA head, and Chan Kong Choy; three former Port Authority chairmen, the former UMNO treasurer Azim Mohd Zabidi, the first woman general manager of the authority, O.C.Phang and the project executor, Tiong King Sing. In addition to awarding the contract to Kuala Dimensi without competitive bid, the land purchase was never vetted by the Malaysian cabinet, although it cost RM1.088 billion against a market value of the land of only RM442 million. Kuala Dimensi "may have overcharged PKA for interest by between RM51 million and RM309 million in connection with the purchase of the land," the report said. According to another report, The 1,000 acres for the port were purchased by the government from Kuala Dimensi at RM 25 per square foot, or RM 1.8 billion inclusive of interest, giving Kuala Dimensi a capital gain of RM 993 million because it in turn had purchased the land from the Pulau Lumut Development Cooperative for only RM 95 million -- RM 3 per square foot. An UMNO assemblyman, Abdul Rahman Palil, was both the Pulau Lumut Development Co-operative chairman and a port director in 2002 when the land for the free zone was sold to the port authority. The then-transport minister rejected an assertion by the Malaysian Attorney General that the land could be acquired for "public purpose" under the Land Acquisition Act at RM 10 per square foot. As a result, the report said, interest on a soft loan from the Ministry of Finance "will increase the project outlay from RM4.947 billion to RM7.453 billion. Unless the MOF soft loan is restructured, total outlay for the project will increase to RM12.453 billion. And, five years into the project, it remains only 14 percent occupied and "revenue generated is inadequate to cover its operating expenses." The zone is expected to be in cash deficit from 2012. The MACC said recently that it had formed a 30- member panel to investigate further.
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(8)
It was Once my beloved nation
written by BunTang , September 02, 2009
It is very very sad indeed. Malaysia could have been a rich and developed nation with natural resources, hardworking and educated citizens. There is a saying, "when the top is deviated, so will the rest at the bottom". How can we have good governance when the elected leaders are all occupied with both economic and political manouvering to stay in power and to enrich their coffers.This takes probably 90percent of their working time and effort. How much time is left to think about real issues of the people and country. No wonder the law and order (police and macc)are in a mess and ineffective. It's like running a family, if the parents are in a mess, so will be the family. There are true leaders out there who wants good for Malaysia and have spoken out at times but there are too few of them. I hope more will join in to voice for a change - need more truly dedicated leaders for the people.
Votes: +0
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selective persecution & annihilation
written by M'sia's Anti- Corruption Citizens, real-MACC , September 01, 2009
Different sets of laws for different folks.
Votes: +0
Come to think of it, Full Sets of Laws for ordinary folks; Adjustabled Sets of Laws for Oppositions. But Those Power-Of-The-Day are "above the law"...palatial palaces, murders in-custody, missing immigration records, C4ed murder, missing funds, cover-ups, threathened of bloodshed on others religions, soaking of certain race's blood on their ever symbolic dagger....i'm so sick of all these nonsense powerplay. Don't tell me you're not. Vote 'em OUT to smithereen. report abuse
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No Democracy in Malaysia
written by Anti-Korrupt , August 31, 2009
The Corruption is a Top Bottom problem in Malaysia.It starts with the purchase of submarines and end with an institution run by the government which protects the crooket! It is as simple as that.If there was an independent inquiry-most of Najib's cabinet will be in jail.All Malaysian see this and see the mockery of a government in power without a mandate strangaling Malaysians of every race , religion and denomination.From the "trumpped" charges against Anwar Ibrahim and the relentless pursuit to gag him to the death by torture of the young chinese gentelman, this is by no means an evil that will leave peacefully without raising religion as an issue to cloud the real issues-corruption!
Votes: +1
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AG of Malaysia should be Independent
written by Dangerman , August 31, 2009
I was reading about how the Attorney General in the United States is looking into crimes "alleged" crimes committed by the former Vice President of the USA. I asked myself why is the AG in Malaysia-not independent but working for Najib and his cabinet! ( Does that make sense to Malaysians???) Why is the AG an employee of the government-I thought he worked for the people?
Votes: +1
Why were the Hindus arrested for a peaceful protest , chargedand jailed and the Mulsims who took a dead carcass around Shah Alam dumping it in government premises free-Is this government going to allow Islamic fundementalism to rule a multiracial country-I am really worried-next they may produce Terrorists! report abuse
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Every Malaysian’s Dilemma-Can Evil be allowed to Prevail
written by Honest Thought , August 29, 2009
Malaysian are very a very frightened people - Malaysians have been murdered, killed, tortured in Malaysia-Malaysians!! This does not apply ONLY to Non-Malays. Malays too! Most Malays are afraid to speak up either suffering the consequences of being arrested or that they may inflame the Muslim Fundamentalist supporters (when convenient-the government will support i.e. latter). We saw so many Malays being arrested, beaten and humiliated by a Police Force run and controlled by UMNO.When is a fact-the Alta ego of the Malaysian government is UMNO. The Chinese and Indians are just passengers with no say. The Chinese MCA-even sold out the Chinese when there was a decision to set up Merdeka University, who will educate all those who wanted a higher education. This was due to UMNO's policy of allowing Malays/ Muslims to have an education higher than the non-Malays-The idea was to undevelop non-Malays. But it failed-many Non-Malays went overseas while the Malays had a very bad, bad education at the University of Malaya (I used to teach there-I know) -a 3rd Class University! UMNO destroyed generations of Malays who would have fought Corruption if they had a good university, learned about Human Rights-(that you don’t jail people without a trial-only uncivilized societies do) in Malaysia or went overseas like all the UMNO elite Politicians and their children! The Malay elite cheated the Malays-they Malay population know that. They know that! How could Toyo, MB of Selangor own a 12 million Dollar home at his salary? This is only one-There are many rich Malays-what happens to NEP??? Gamuda?
Votes: +3
The second reason is that UMNO uses religion-which Malay politician is religious? Tell, me and I will say that Badawi with his salary became a millionaire with his family because of hard work! All are crooks-how does Najib say that everyone must follow the law-when he has not?? When he has allowed Mahathir Mohamed, an anti-Semitic, liar and thief -who can dictate that he, be appointed as PM. This is to repay the favor that Razak allowed Mahathir to return to UMNO. When the No1 in Malaysia is suspect-he does not want a clean, efficient-Police, Judiciary, Anti-Corruption because he may as his friends find himself in Jail! Like every bad government and ruling party-you don’t want an honest man to be Attorney general because he may come after you-So Malaysians can be confident that every institution in Malaysia that deals with democratic principles in corrupted to keep in place a bad government who will make its policy to break up the multi-racial population and create a racial problem-or riots as in 1969, to be rid of the strong opposition! What is the answer-deflect the problem-start using fundamentalism as a ploy to frighten the Churches, Temples, use everything to suggest fundamentalism is a danger and then start an EMERGENCY ...............like his father and take over the country-so that all the crooks can escape-Think not of May 13th 1969-Think of after May 13th 1969-How UMNO killed all Malaysians to keep the Royalty and Elite in power to the detriment of the poor, honest and Patriotic Malays, Chinese and Indians-UMNO is killing Malaysia! I want a strong Malay government-why not??? But honest one-not relatives of relatives raping Malaysia and nepotism-I need change-do you? In Malaysia-Muslims/Hindus/Christians/Buddhist always respectedeach other-DONT LET THE GOVERNMENT BREAK US!! report abuse
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written by Soothu , August 24, 2009
Dennis,
Votes: -1
If we decide that , that is the norm-then so be it! Who decides the norm-I am a Muslim. I never got anything from the NEP as a dentist. Infact, borrowibg this computer I am so worried as a Maly I will be arrested by a family and familes who run this coubntrty! Amazing you mustbask as a Bumi-but look at theBloggs-Non-Malays are talikning lessthan right thinking Malaysia.We are also victims-Ask Bakri Musa and Harun Hashim if he was alive-Judge!! Bad Government- How toi change, if the No 1 Judge and No 1 Jude in Siongapore are raletde-Yong Pang How's Brother and our Lpord Presdient are Brorhetr in law by Marriage! But hopefully, knowing our LP-he will advocate that a Minsiters decision to arrest can be challended! That is all. Its time that Sri Ram, the other idiot on the Bench , the cHinaman-corrupted -Low Hop Bing-must be retired or REMOVED! I would like to see a Judge whne appointed with nothing less than a PHD.LLD in Malaysia report abuse
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The Rule Of Law-WAKE UP MUSLIMS BEING USED
written by Kumba Kinta , August 24, 2009
is the concept/idelogy etc which has been tested-if the PM and Deputy are above it-then why bother-let bad governance, lack of transparency, CENSORHIP as here prevail) Let us pretend in Malaysia that we are a democracy-Denial because Muslims dont lie-if a Terrorist Kills and Israli, its Jihad-its Gods work-that is what Malaysia has become-Mulsims fails to see Malaysian Muslim Politicians are Killing Muslim like 9/11!
Votes: -3
The DPM amd PM using Muslims! I may be wrong-sibnce they work for us can we know how much are in their accounts? Maybe we should ask OSCE countries??? report abuse
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