Posts Tagged ‘PKFZ

20
Jan
15

Why is 1MDB following PKFZ’s footsteps?

Why is 1MDB following PKFZ’s footsteps, asks industry observer

Troubled sovereign fund 1Malaysia Development Berhad is in the spotlight again, this time over a RM300 million land acquisition deal on Pulau Indah in Selangor.

An industry observer told The Malaysian Insider that 1MDB, via Ivory Merge Sdn Bhd, was purchasing the land from Tadmax Resources Bhd.

“Why is 1MDB buying the land? What do they intend to use it for?” said the observer when contacted by The Malaysian Insider.

Tadmax, previously known as Wijaya Baru Global Bhd, was formerly controlled by Datuk Seri Tiong King Sing, the Bintulu MP.

“Why is history repeating itself?” the observer asked, pointing out that the 1MDB’s land deal was similar to the Port Klang Authority’s (PKA) land purchase.

In 1991, the government set aside 404ha on Pulau Lumut (now known as Pulau Indah) for Koperasi Pembangunan Pulau Lumut Bhd (KPPLB).

However, KPPLB eventually sold the 404ha to Kuala Dimensi Sdn Bhd (KDSB), of which Tiong was chief executive officer then, for RM96 million.

KDSB, in turn, sold the same land for RM1.09 billion to PKA, with the remaining 125ha on the shore kept for development.

That remaining 125ha is now being sold to 1MDB although the completion of the sale has been extended several times.

This is due to announcements of revised prices of RM294.38 million, with the previous price being RM317.33 million or RM23.50 psf.

“This was originally government land, why is there a need to purchase the same piece of land again, albeit at a much higher price?

“If 1MDB really needs land, it should just purchase it from the Port Klang Free Zone (PKFZ),” the observer said.

The observer claimed that at least 70% to 80% of land which PKFZ owned was underutilised and would cost a lot cheaper than RM300 million.

…more
Why is 1MDB following PKFZ’s footsteps, asks industry observer
11 January 2015 – TMI

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02
Jul
12

PKA wins appeal to reinstate case agains KDSB

The Port Klang Authority (PKA) has won its appeal against the Shah Alam High Court’s decision to strike out its suit against Kuala Dimensi Sdn Bhd (KDSB).

The decision was made at the Court of Appeals today by the three-member bench comprising Justices Low Hop Bing, Balia Yusof Wahi and Mohtarudin Baki.

The PKA’s lawyer Cindy Khaw told Malaysiakini that the case will be reinstated in the High Court, to be heard by a judge other than Justice Zaleha Yusof who had struck out the case.

azlanThe PKA is the statutory body governing Port Klang Free Zone (PKFZ) while KDSB was the turnkey contractor for the PKFZ project – a mega-scandal that saw two former ministers being charged in court and millions of ringgit of public funds allegedly being siphoned off.

PKA had filed the suit on Sept 18, 2009 against KDSB, to claim interest under the sales and purchase (S&P) agreement dated Nov 12, 2002. KDSB applied to strike out the suit on May 3, 2010.

The purchase price for the 999.5 acres (400ha) of land worth RM1.088 billion, was calculated at RM25 per square foot with annual interest of 7.5 percent over 15 years.

The PKA claimed that no interest was chargeable on the balance of the purchase price under the S&P on the basis that the agreement had been drawn up and signed by all parties under a mutual mistake of fact.

It had relied heavily on the letter dated Sept 29, 2000, from the Valuation and Asset Services Department to the Transport Ministry, contending the special value of RM25 psf had taken into account the interest element.

By reason of the alleged mutual mistake of fact, PKA sought a declaration that no interest was chargeable on the balance of the purchase price under the S&P, and sought an order to rectify the agreement to reflect this.

The PKA is also seeking RM324.25 million in repayment from KDSB.

…more
PKA wins appeal to reinstate case agains KDSB
Jun 25, 2012 – Malaysiakini

10
May
12

Silent figures in PKFZ scandal equally at fault, says ex-PKA boss

KUALA LUMPUR, April 14 — The Port Klang Free Zone (PKFZ) project would not have racked up the hefty estimated RM12.5 billion bill if those in the know had broken their silence on the scandal years ago, Datuk Lee Hwa Beng (picture) has said.

The former Port Klang Authority (PKA) chairman said these individuals were just as responsible as those who had committed legal wrong in the project that has seen two former transport ministers put on trial.

“When you are given responsibility, even when you are not involved in wrongdoing, you cannot be silent. It is your duty to tell. The whole episode happened because people knew but kept silent. Silence in the face of evil is also evil,” he said in a recent interview with The Malaysian Insider.

“If anyone had squealed in the past 12 years, things would be very different and it would not have snowballed into such an amount.

“If only one person raised the alarm… but nobody did,” he added.

The project, initially estimated at RM1.1 billion after it was mooted by then Transport Minister Tun Ling Liong Sik in 1997, more than quadrupled to RM4.6 billion by 2007.

A position review by top accounting firm PricewaterhouseCoopers (PwC) revealed in 2009 that the total cost including interests from debt repayments could reach RM12.5 billion.

Since December 2009, six individuals have been charged in court including Ling, an ex-MCA president, and his successor as transport minister, former MCA deputy chief Tan Sri Chan Kong Choy, who are accused of lying to the Cabinet.

Lee added that the duty to blow the whistle applied to every GLC and government body as they have public figures sitting on their boards as trustees for stakeholders they represented just as PKA had representatives from the prime minister’s department, finance and transport ministry as well as independent directors.

…more
Silent figures in PKFZ scandal equally at fault, says ex-PKA boss
By Shannon Teoh
April 14, 2012 – TMI

08
May
12

Kong Cho Ha doing all he can to cover up for PKFZ culprits

Today’s headlines on The Sun revealed that Port Klang Authority (PKA) has officially written to the Bar Council less than 2 weeks ago to withdraw the complaint against Rashid Asari & Co in a conflict of interest case when preparing the sale and purchase agreements on behalf of PKA for the PKFZ project.

The breach of professional ethics was first revealed by the special position audit carried out by PriceWaterhouse Coopers, commissioned by the then Transport Minister, Datuk Seri Ong Tee Keat.

The Public Accounts Committee which took some 6 months to complete the follow up investigations endorsed the findings and made recommendations for those found in breach to be appropriately prosecuted.

Datuk Lee Hwa Beng who was the then PKA chairman had duly carried out his duties to file the necessary complaints against Rashid Asari & Co with the Bar Council.

However under the new Minister, Datuk Seri Kong Cho Ha and new PKA chairman, Datuk Teh Kim Poh, they have conspired to reverse the decision as well as many other decisions which were taken previously by PKA.

Kong also withdrew all litigation against Kuala Dimensi

In addition to the above, PKA has also decided to withdraw all civil litigation against Kuala Dimensi Sdn Bhd (KDSB)for failing to carry out as much as RM1.6 billion works – including double billings, ficticious billings for works never carried out and excessive charges to PKA. For example, KDSB was accused of making claims amounting to RM55.8 million and RM83 million for 33kv and civil infrastructure works which have yet to commence. These charges were similarly brought against PKFZ by Lee and Ong.

However at KDSB’s behest, with obvious motives to sweep the entire BN scandal under the carpet, PKA has agreed to proceed to the arbitration instead despite the obvious criminality of the alleged offences. The CEO and shareholder of KDSB was Datuk Seri Tiong King Sing, who is also the Member of Parliament for Bintulu and BN Backbenchers Club.

Datuk Seri Kong has also directed that all payments which are due to KDSB be paid to the latter’s bondholders despite the decision to withold payment by the previous PKA Board. The decision to withold was because of the earlier mentioned legal dispute.

Jeopardising PKA’s own interest

By proceeding to pay KDSB, PKA is basically jeopardising its own interest by making such payments before the Court has decided as to whether such payments are due. The payment amounts to nearly RM700 million annually and has since been paid promptly by the current PKA.

Datuk Seri Kong Cho Ha must answer as to why he has almost single-handedly unravelled all which were in the process of being done to bring to book the guilty parties and to safeguard the interest of Malaysian tax-payers.

As a result of all the past abuse and mismanagement, the Government’s bill for the project will increase to RM12.5 billion. The sheer lack of urgency to resolve the matter by the Minister demonstrates clearly that powerful political interests are being protected at the expense of the Government.

Tony Pua is the DAP MP for PJ Utara

…source
Kong Cho Ha doing all he can to cover up for PKFZ culprits – Tony
Written by Tony Pua
16 April 2012 – Malaysia Chronicle

04
May
12

Only ‘tip of iceberg’ so far, ex-PKA boss says of PKFZ scandal

KUALA LUMPUR, April 13 — Despite five years of exposés on the Port Klang Free Zone (PKFZ) scandal that could cost taxpayers up to RM12.5 billion, the ex-chairman of the Port Klang Authority (PKA) says authorities have only hit the “tip of the iceberg”.

Datuk Lee Hwa Beng also suggested that only political change could result in independent investigations unhindered by vested interests.

The book will be launched on Tuesday and available in bookstores soon after.

He said earlier this week that there were many questions on the project that were still unanswered, during an interview ahead of next Tuesday’s release of his book, “PKFZ: A Nation’s Trust Betrayed”, which chronicles the story of the project first mooted in 1997 and included insights from his three years as PKA boss when the controversy erupted, as well as his role in the investigations.

The book, co-written by Lee with former journalist Lee Siew Lian, is being published by The Malaysian Insider and is expected to be available in major bookshops soon after next Tuesday’s launch.

“Outside of PKA, a lot of things happened. It might come out in the court cases. OC Phang’s trial will probably reveal even more facts,” Lee said of the former PKA general manager who served from 1997 to 2008, when the cost of the project ballooned from RM1.1 billion to RM4.6 billion.

She is currently on trial for three counts of criminal breach of trust involving over RM254 million related to the PKFZ.

“In the transport ministry, there are so many things that happened, which we won’t know about, that might not be revealed in the court cases. Only the police and Malaysian Anti-Corruption Commission (MACC) have the power to dig (these) out.

“The six that are on trial were not charged with corruption. Without that, the money trail won’t come out,” he said, referring to the prosecution of the half dozen individuals including two former transport ministers.

What’s happening right now is not even the curtain raiser. It has not even begun yet!

The former Subang Jaya assemblyman for MCA added that political change was needed so that port officials will not be obstructed by those with vested interests.

“This is not the end of the story, there is more to be unravelled and unearthed. It is just the tip of the iceberg,” he said in a recent interview with The Malaysian Insider.

…more
Only ‘tip of iceberg’ so far, ex-PKA boss says of PKFZ scandal
April 13, 2012 – TMI

19
Apr
10

PKFZ – Ex-PKA directors off the hook

All previous directors of the Port Klang Authority (PKA) under whose watch the nation lost more than RM12 billion in the Port Klang Free Zone (PKFZ) scandal have been let off the hook.

This deals a severe blow to Transport Minister Datuk Seri Ong Tee Keat’s promise to bring to book all those responsible for the scandal and the current Board’s undertaking to leave no stone unturned to hold its predecessors responsible for the massive losses.

At its meeting two weeks ago, the PKA board decided not to take any form of action against members of previous boards which allowed the management of PKFZ to enter into dubious and non-existent deals.

The 11 directors “reached a consensus” that although the previous directors failed in their fiduciary duties; it was not intentional as “they did not personally gain from such breaches”.

However, they remained optimistic that the authorities would initiate prosecution if anyone of them had pecuniary interests or benefited from the decisions made by the board.

Continue reading ‘PKFZ – Ex-PKA directors off the hook’

18
Mar
10

What Happened to the PKFZ Sharks?

What Happened to the PKFZ Sharks?
March 18, 2010 – tonypua.blogspot.com


While the initial actions taken by the government to charge a few individuals were trumpeted as the Government’s strong commitment to fight against institutionalized corruption, their failure to date to take any follow up actions have proven that Datuk Seri Najib’s administration is all-bark and no-bite. It will serve as a major black mark against the “Government Transformation Programme” campaign where “fighting corruption” is the major pillar.

What is worse, the Government is attempting to cover up the non-viability of PKFZ with misleading positive media reports on its performance. Datuk Seri Ong Tee Keat had proudly announced in January this year that PKFZ “had returned” to the black with RM15 million in revenue and RM5.2 million in operational profits. He has however failed to mention the fact that the interest alone for the 4% soft loan worth RM4.632 billion granted by the Government to bail out the project costs PKFZ RM185 million per annum.

This means that PKFZ is far from turning around and its debt is only increasing by hundreds of millions by the year. In fact, the Government might well do better in its fight to contain its budget deficit by disposing of the project than to continue putting good money after bad investments in this case.

…read more (tonypua.blogspot.com)




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All that is necessary
for the triumph of evil
is for good men
to do nothing.

- Edmund Burke
When the people
fears their government,
there is TYRANNY;
when the government
fears the people,
there is LIBERTY.

- Thomas Jefferson
Do you hear the people sing?

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