Wednesday, May 06, 2009

PKFZ: Damning Disclosure

A day before the report on the controversial Port Klang Free Zone (PKFZ) project is due to be made public, Barisan Nasional MPs were briefed by the Port Klang Authority (PKA) yesterday and told that the cost of the project is now expected to be more than RM10 billion*!

The Sun also reports, here, that among the findings of Price Waterhouse Coopers (PWC) audit report are that:

» No proper studies were undertaken before embarking on the project;

» Major decisions on the project were made without prior approval of PKA board;

» The PKA chairman and general manager entered into agreements without seeking the advice of the relevant government authorities;

» There was a failure to exercise adequate governance and implement checks and balances in the implementation of the project.

(These are things I have been frothing at the mouth harping for some time).

The report also detailed a series of conflict of interest situations, which include:

» Sementa assemblyman Abdul Rahman Palil was both the Pulau Lumut Development Co-operative (KPPL) chairman and a 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 sales and purchase agreement between KPPL and turnkey contractor Kuala Dimensi Sdn Bhd (KDSB).

(Interestingly, current BN Backbenchers’ Club chairman, Bintulu MP Tiong King Sing holds a controlling stake in KDSB. Former UMNO Treasurer Azim Zabidi is also a director of KDSB!)

One contributory aspect to the PKFZ mess, sources added, was that several Finance Ministry regulations on transparent accounting practices were not complied with and that the advice of the Attorney-General (A-G) was not sought.

The audit report also paints a troubling picture of officials in the Transport Ministry, noting that so-called "letters of support" signed by a former Minister of Transport for the issuance of the bonds could be construed as a guarantee and that PKA would have to meet its financial obligations under such an arrangement.

The PWC report is expected to be made public today, with strong evidence of massive corruption, shameless cronyism and blatant abuse of power by those involved. I say we throw the book at them, make 'em walk the plank, or whatever.

* I was told that if nothing is done quickly, this may even balloon to RM12 billion!

UPDATE at 1930 hrs: In a breaking news, Malaysiakini reports, here, that the audit report into the scandal-hit Port Klang Free Zone (PKFZ) was not released today as scheduled, due to “technical reasons”. PKA chairman Lee Hwa Beng has now put the blame on PWC which he says has "restricted access" to the report.

Didnt these morons specify the terms of reference of the audit?

My sources tell me that all that PWC insisted was that the report should not be used against them and that they are not responsible for the accuracy of the documents made available. This seems pretty reasonable to me under the circumstances.

I urge the Minister of Transport, Chairman and GM of KPA to resign ... NOW !


  1. Capt,
    We all know of this even before the disclosure. The audit report is only to confirm what we have known all along. They will just turn deaf and mute and nothing will happen after that. Somebody will proclaim NFA since what is gone is gone.

  2. Correct, correct, correct. It looks like corruption, sound like corruption but it's not corrupt, only a sinking ship.

  3. Shameful act yet they can strut around as if nothing happened. Blatant abuse of political power to say the least and it is no difference from the guy who built his palace in Klang. It is a curse to our country to have such politicians running and ruining our country. We just simply do not have educated and fair-minded politicians to vote for. I wonder if we can still recover from the 50years of abuse all in the name of NEP. Education gone, judiciary gone, the polis are more focussed on serving the politicans than fighting crime. You can see very clearly we have found ourselves in the lower rungs of the world social order compared to Singapore which were once on par with us. What made them more successfull than us? for every brilliant guy there we can find 10 in our country. Why are we in such a situation. Go figure. I wonder if our former leaders ever got down to doing it.

  4. Dear Capt.

    Its heartening yet heart-breaking to read such news. I'm weeping for my country and the future generations. To inherit a wonderfully resource-laden country but end up with such grossly corrupt government..*sigh* when will this end??

  5. Capt, how our seafaring ancestors like the Bugis and Orang Laut must weep at our shoddy treatment of their legacy.

    Even under the British colonials our shipping industry was once great, and now its a shambles no thanks to the antics of treasonous conmen masquerading as politicians.

    I say, charging them with corruption is not enough. Charge these bvstards with TREASON and give them the death penalty, or at least jail for 20 years to life. Who knows how many billions of taxpayers money these scum have cost Malaysia and how many years our shipping and logistics industries will be set back by this scandal!!

  6. Only way to these problems are to freeze the bank accounts of those involved in corruption. Give the money back to the releveant coffers. :) Work forward from there on.

  7. This is why the report takes so long see light.

    Corruption, cronyism, nepoism..etc u name it they have it. BN Bolih.

  8. And they have the gall to lynch YB Mano for "wasting the government's money on by-elections" when he wanted to resign his ADUNship because he can't serve his constituents from Kamunting.

  9. Dear Captain.

    I am glad to read your concern vindicated by the PWC report. This affair is so rotten that its carcass cannot be buried without people noticing it. The smell will envelope Ong Tee Keat if he ever attempt to do this.

    Politically, he has to expose this devious deed, if he want to survive.

    I wonder how many more names will surface after a criminal investigation. All those guilty should be impaled on the stakes ala Count Vlad Drakul. And I hope they take a long time to die. And with their eyes picked by the crows.

  10. Dear Capt. Sir

    Have followed your take on this issue for quite some times now.

    Only this time I feel the urge to comment.

    My view on this are:-

    1) Check and balance only exist when the person(s) in power knows that he will be accounted for what he has committed either to the law of the land or to GOD;

    2) When you're voted in again-and-again for 50 donkey years; see your predecessors and colleagues getting a free-pass and live a good life; you KNOW that ACCOUNTABILITY does not exist;

    3) ACCOUNTABILITY equals CHECK&BALANCE equals fair chance of SUCCESS;

    We have witnessed this blatant abuse of power many times since the last 50 years;

    We truly deserves this.


  11. Yet Ong Tee Kiat tried bluff and bluster to misdirect us in attemptig a cover up to protect MCA/UMNO current and ex- big wigs.

    He talked about increase in occupancy, but not whether they were making profits or what the break-even income had to be to finance 12% bond interest.

    As to the illegal letters of support from Ling, it's time the Govt took him to task. He's got away with one too many gross mismanagents in the past. That run in with Soh Chee Wen was 1, and recently he was allowed to resign quietly as Chairman of Transmile where serious accounting fraud took place without him being charged for negligence and breach of fiduciary duties!

    They should introduce public flogging and hanging for specific white collar crimes like these!

    The GOvt should not bail out those responsible for this fiasco, but let bondholders sue the criminals to bankruptcy.

  12. Captain, needless to say, all those PKA morons are corrupt to core. Of course... there will be "No further Action" after that...a UMNO/BN Standard Operation Procedure !!

    It's time to ship all those buggers to the Aden Sea....


  13. Capt you do a follow up on the other scandal which is the lpk quarters in klang.That also is a major scam that needs attention.

  14. Captain, Sir,

    Many others, like you, have been frothing over cases like this one. We have uncovered one tip of an iceberg after another, abuse after abuse of power, of the state's and people's fund. In the process some got filthy rich, benefitted with holidays abroad with family and maid tagging along, while some citizens of this (blessed?) country of ours find it difficult to even make ends meet...

    Cannot wait for 2013

  15. That... Captain... was our tax money. Several billions of it. Billions of dollars that could be used to set up social services for the needy in Selangor, improve the public transportation system, improve the police force to combat crime, etc. Gone into the pockets of some blokes well connected.

    Ask yourself what 5 billion RM alone can do?

  16. As usual, the MACC will say no case. Case closed. Everything is hunky dory. Malaysia Boleh.

  17. Capt,

    Any idea what's brewing here -

    Better still - any chance of getting hold of an 'unofficial true copy' of this PWC report before it gets 'edited'?

  18. I am still confused why DP World the Management Operator backed out of the deal with PKFZ in haste.DP World operates ports in some of the most corrupted countries in Africa and Asia. And yet they pulled out in haste when it came to KPFZ. Did they see sometning that we Malaysian have ovelooked.

    Clearly, we have to do some soul searching. The perception create by the brand name Malaysia is in danger of being relegated to the backwaters of economic history.

    We must learn, and quickly, that the Government or the people who were given lucrative Licence should not make money by selling it. The Government only makes money when the Licence make money.
    I am confident that the new PM with his commercial background will improve the situation before it is too late. Ramalx


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