Saturday, May 30, 2009

PKFZ Conspiracy Theories

In the loo of the Subang Lake View Club recently, a well known journo friend who was at the forefront of the expoof the Port Klang Free Zone (PKFZ) scandal, told me how put off he was at the talk of "conspiracy theories". I agreed with him. The RM12 billion fiasco was simply driven by one word: greed.

Now that the MSM and online media have gone to town with the story, there are calls to probe the big-time "puppet masters", sell off the PKFZ "black hole" etc., and the developers of the project are also threatening to sue. The latter I find very amusing since this will be akin to thieves suing a house owner for calling the cops!

My immediate concern is for the fate of my young former colleagues in the Klang Port Authority, especially now in the government search for scapegoats. Many were forced to do things which were against their principles and had signed cheques under protest etc. A few had resigned in disgust thereby losing their pension benefits.

Transport Minister Ong Tee Kiat has vowed that any "any decision on the PKFZ project will be made in the interest of the people." Lets hope that the decision will not jeopardise the interests of these little people.


  1. Dear AM

    It's astonishing how even the MSM have latched on to this $12 billion figure.

    Having read the report, the potential losses to date is appx. 5$ billion comprising:

    Land $ Buildings Construction Contract awarded to KDSB - $3.5 b
    Accumulated interest - $1.5b

    The balance of $7 billion comprise interest on bond and Govt loan which MAY occur between 2012 and 2041, if PKFZ is unable to meet its loan repayment and bond interest obligations. (Which it will 100% not be able to)

    An amount of $4.2 billion of MoF's soft loan has not been drawn down and they should gurad this like Fort Knox

    I see it as a simple matter of the Govt, PKFZ and the KDSB sitting round a table and hammering out a compromise.

    Some are talking about 'turning' the project around. This is a pipe dream. The project should be wound up as currently occupancy is about 14% which a total disaster, i.e. Chapter 11 a la USA is the best solution!!

    Sometimes you can maximise profits; here we must minimise our maximum loss.

    So, they should auction off the land and buildings by open tender. The balance of losses will have to be borne by the Govt (taxpayer). There's no choice. This is the flavour of the Global Economic Downturn season where even the USA, UK and Europe are bailing out bust corporations like there's no tomorrow!

    But the heads of Ling, Chan, BBC Chairman and those found guilty of aiding in fraudulently inflating land price should roll!!

    It's as simple as that. If they offer me the job, I'll accept and complete the whole re-structuring within 3 months.

    And KDSB wants to sue? Let them. Ther's no money in a bankrupt PKFZ for KDSB to go after. ONly the lawyers, consultants and PWC will earn big bucks.

  2. BILLIONS is a lot of money, my money.. your money.. our children money..

    NO DOUBT this is the biggest scandal (in term of B's) the nation had ever seen..

    CASUAL MANNERS our politicians & rakyat alike dealing with this is really mind-boggling..

    they mentioned the B word very casually, no urgency in damage control & in attempt to recover the monies..

    my heart ache.!

  3. Capt,

    Yer not supposed to take a leak and spill lah. That's like kiss and tell mah.

    Anywayz, the spillage from PwC report doesn't commensurate with the pilferage that has occurred.

    We need to squeeze harder, old chap. Will Jebel help fill in the blanks?

  4. Shar101:

    The Arabs may have a lot of money but they are not stupid. I believe they are still being paid even after they have left so why would they want to burn the bridges.

  5. Dear Capt,
    Its really heart sick to see this scenario repeated itself. Aint we see enought?
    BBMB, Perwaja, MISC, MAS just to name afew and now this.
    But what ever it is at the end of the day none will be accountable.

  6. Capt,

    I'm aware that Jebel apparently is still in the financial loop, hence, for THEIR sake in maintaining proper corporate governance and for being duly compensated, whether their representation of the facts in this audit review should be taken into account.

    Alternatively, if a class action suit ala USA is not viable, can a 'Public Interest Litigation' initiative be adopted.


    We can expect foot-dragging shenanigans by the authorities but let's explore any possibility to mitigate further losses and/or recoup ill-gotten gains.

    And by doing so, bury BN in the next GE as well.


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