PKFZ - Some Unanswered Questions

PKFZ - satellite photo from Google Earth

That the Speaker would shoot down Lim Kit Siang’s bid to introduce an emergency motion to debate the PKFZ issue in parliament was a foregone conclusion. There have been a number of statements made by the Ministry of Transport but some questions remain unanswered:

> Lembaga Pelabuhan Klang (LPK) bought the land at RM25 psf when parcels of reclaimed land were going at between RM12 - RM15 psf depending on the size of the parcel. How did LPK arrive at the figure of RM25 psf? Who carried out the valuation of the property? Normally, the Government Valuers would have been called in to value this. Why were they not called? Is it true a Valuer linked to Kuala Dimensi Sdn. Bhd. carried out this valuation?

> LPK paid Kuala Dimensi Sdn. Bhd. RM1.088 billion for 999.5 acres of land at RM25 psf as against the advice of the Attorney-General and the KSU of the Ministry of Finance. Giving the benefit of the doubt, if we add RM3 psf for infrastructure, etc., the cost will be RM18 psf. This would have cost RM784 million minus encumbrances and LPK must have paid RM305 million extra!

> Free zone facilities such as warehouse, office complex and Customs complex - Nobody develops such ready-made facilities in Free Zones. One cannot pre-determine the needs of clients. Why were all these facilities built without knowing the needs of the clients?

> It is understood that the Board decided to develop the first 500 acres and gave the turnkey job to their friends, Kuala Dimensi Sdn. Bhd. for RM400 million. Who was the expert to decide as to what is the type of facilities to be developed i.e. the size of warehouses, business complexes, etc. Was there a survey done from the potential clients as to the needs? If there is a report on this, can it be made available? Everyone in the construction and engineering consultancy business know that turnkey projects cost 30% above open tender prices. Did LPK pay RM100 million more than it should?

> To add insult to injury, it was decided to proceed with the second 500 acres development. The cost ballooned to RM1.85 billion. It is understood this includes professional fees of 10% amounting to RM180 million and Variation Orders of 20% amounting to RM360 million. At the original cost of RM400 million for the development of the first phase and giving the benefit of escalation in price for the 2nd phase amounting to RM600 million, the total cost inclusive of professional fees should only be RM1 billion. What happened to the RM850 million?

> Assuming that the above figures are far from the truth (and I stand corrected), let us give the benefit of the doubt and add another magical 30% for miscellaneous costs which obviously must have included exotic cars for those who matter. Which means we are adding RM600 million to the total project cost which now hits RM2.65 billion. So what has happened to the RM2 billion?

> A little bird tells me that the general manager of LPK’s appointment has been extended for the third time past her retirement age - surely without precedent in the civil service. The same little bird tells me that the GM is also the chairman of the Free Zone. Takde orang lain yang sesuai lagi ke?