Sunday, June 28, 2009

Act fast on PKFZ fiasco


Friday, 08 May 2009 04:39
In reaction to theSun's front-page report on the audit report which is to be made public soon, Transparency International-Malaysia president Datuk Paul Low (pix) called for prompt action with full force of the law against parties involved, adding an annulment was vital and corruption must be promptly and diligently investigated by the Malaysian Anti Corruption Commission (MACC).The report said the audit by PricewaterhouseCoopers (PwC) had detailed a series of conflict of interest situations, among them:>> Sementa Assemblyman Datuk Abdul Rahman Palil was both the Pulau Lumut Development Co-operative (KPPL) chairman and a Port Klang Authority (PKA) director in 2002 when the land for PKFZ was sold by KPPL to PKA;>> Rashid Asari & Co, the legal firm retained by PKA, was also the same firm overseeing the inking of the sale and purchase agreemnet between KPPL and turnkey contractor Kuala Dimensi Sdn Bhd (KDSB). Its senior partner Datuk Abdul Rashid Asari was the deputy chief of Umno's Kapar division, where Tan Sri Onn Ismail is an exco member. Onn was the KPPL chairman and his son-in-law Faizal Abdullah, the then Kapar Umno division youth chief, is also the deputy CEO of Wijaya Baru Global Bhd (WBGB), the firm appointed by KDSB as the main subcontactor;>> Perunding BE Sdn Bhd, appointed by PKA as the independent quantity surveyor for PKFZ, was also a quantity surveyor for KDSB;>> PKA's board of directors were not advised that the chairman of PKA at one time was also the deputy chairman of WGBG;>> KDSB directors Omar Latip and Idris Mat jani are also directors and shareholders of WBGB.Low said the disclosure reveals "blatant abuses in the stewardship of public assets" and deals that reflected a lack of transparency, conflict of interests between the parties involved, involvement of politicians, the inflated prices of the transactions and questionable transactions.He said it indicated a malaise of mixing politics with the proper administration of government assets."It is therefore appropriate for the (Datuk Seri) Najib Abdul Razak administration to review the way transactions are conducted and procurement made in all government agencies so that similar 'leakages' and abuses can be prevented," he said."Malaysia can ill afford mal-administration and fiascos like this when the well-being of the economy is highly dependent on international trade."Other reactions:> Former premier Tun Dr Mahathir Mohamad said he was not aware about the RM1 billion PKFZ land deal although it was reportedly made during his time in 2002.He said he had heard there were some elements of wrongdoings involved, which were not criminal in nature, but he received no official report about it.“I was not aware but what I know (is) there have been instances, which are not criminal but morally wrong, in which state governments, whenever they hear that we want to build a road, they allocate the land to some members of the executive.“Then, we have to buy the land from those people. This has happened. And it is something that is morally wrong,” he said.Asked whether he had offered any advice when he heard of such instances, he said: “People don’t want to make proper report, (they) just tell me this is what happened.”>
Gerak Malaysia, the civil movement against corruption, has urged the MACC to leave no stones unturned in their investigations.Its chairman Mohd Nazree Mohd Yunus said it was important for MACC to speed up its investigation and haul in those responsible for the ballooning of the project cost, as well as other irregularities behind the project."Those who profited from the deal, either politician or businessmen, must be brought to face the law."> Port Klang Authority (PKA) chairman Datuk Lee Hwa Beng said the audit finding will be made public soon but did not give a specific date.In a statement, he said fllowing instructions of Transport Minister Datuk Seri Ong Tee Keat to release the Position review of PKFZ within seven days, he had written to PricewaterhouseCoopers (PwC) on April 30 to seek consent to publicly release the said report.He said on May 4, PwC agreed to give consent, subject to certain terms and conditions.He said he is calling for an emergency board meeting to seek the board members’ approval on the terms and conditions for the release of the report.Lee said he had informed Ong of this matter. "I have also given my assurance that the matter would be sorted out as soon as possible."> Datuk Tiong King Sing, who is majority shareholder of KDSB and a director of WGSB, declined to comment, saying that he had instructed his lawyers to look into the matter.
Last Updated on Tuesday, 12 May 2009 04:40

No comments: