Tuesday, September 04, 2007

PKFZ - Points to Ponder for PAC

(Photo courtesy Capt. Hj. Tasripin)*

Opposition leader Lim Kit Siang spoke about the PKFZ scandal again in parliament yesterday. Public Accounts Committee (PAC) headed by Datuk Shahrir Samad will meet on Thursday 6th September to discuss the issue. My regular early morning brisk walk companion Dr. Tan Seng Giaw, who is the committee's vice-chairman has raised many probing questions with me on this matter. Here are some broad pertinent points and irregularities I hope PAC will probe and that they will not leave any stone unturned:

1. Why did Lembaga Pelabuhan Klang (LPK) get involved in an operational activity, when Government decided with privatisation, all such operational activities be carried out by the private sector?

2. If it was, as said, to be self-financing and profitable, why did Kuala Dimensi Sdn Bhd. not do it themselves?

3. If Kuala Dimensi’s excuse is that they lacked experience, expertise and finance, was it not the same with LPK?

4. Why did Jebel Ali Free Zone Authority (JAFZA) terminate the lucrative RM15 million per annum management contract with the PKFZ? Is what has been said in the newspapers true? What actually took place?

5. With no working knowledge of port/logistics/free zones etc., the GM of LPK has not only had terms extended 3 times in office but also made chairman of PKFZ. Why? Is she protecting vested interest of certain parties?

Meanwhile, Malaysiakini reports that my old MCKK classmate and former DPM Anwar Ibrahim has remarked that the PKFZ scandal is one of betrayal, involving the rich and powerful in the government, here.

* Above photo is of yours truly with an old friend and LPK general manager Datin Paduka O.C. Phang, taken at the 4th Asia Maritime & Logistics Conference organised by the Malaysian Shipowners' Association (MASA) about a year ago. I was a member of the organising committee.


  1. Captain,

    Pertinent questions, indeed.

    I still have my doubts on PAC's effectiveness in probing the PKFZ issue, particularly, since 'vested interests' need to be protected somehow or anyhow.

    Nonetheless, the established protocol needs to be put into place and addressed at this stage.

    All the sweeter, if and when, other options are applied.

    Meanwhile, will ya do a 'JAFZA' c.v. so as to provide a clear and proper perspective on what LPK and KD can't do but won't admit.

  2. look at the personalities behind this rip-off. not your small time politicians.
    for good measure, i am still waiting for the MP from a town in east malaysia to live up to his threat to initiate legal action against malaysiakini for defamation. let all the beans spilled out for all and sundry to see and judge for themselves. more effective this way than the probe by Sharir, which s going to be an eyewash exercise anyway (remember the sorry probe on the ECM Libra-Avenue merger which was really a joke).

  3. shar101:


    Many thanks. I am not ready to give up on Shahrir and co yet so lets see.

    I have also been warned against incurring the wrath of the so called 'Foo Chow mafia' but again, lets see..

  4. Capt Yusof

    I once have the faith in Sharir until the recent ECM Libra and Avenue merger. What can he do? Against his comrades? Even if he wants to, the whip will be used. Afterall, the government has already agreed to give the soft loan (oouch bail-out is a dirty word) which will never be repaid anyway. And the Deputy finance Minister has came out blazing with his guns so to speak, trumpeting that the project is feasible. Goodness gracious, the numbers as given by the GM of PKFZ, confirmed that the revenue cant even pay the interest let alone repay the principal! Well, wont be surprise that the same GM will come out with a press statement that he is being misquoted!
    In any event, Capt Yusof you have my utmost respect for your efforts. Best wishes.

  5. capt, the financial guy said the interest woul be 4%, and at that rate based on $4.7B, itwoulb $168m per year, w/out adding the compuonded interest. And PKFCZ only project some $40m in a couple of years. It looks like my computation won't go wrong. Westport would CERTAINLY say, never mind,for the sake of NAYIONAL SEVICE,we will help to manage the Zone for a 17.5% management fee!
    Even PAC can't figure this out. It is business man! You make a profit or loss in business,but this was guaranteed loss even b4 the ink dried.Hurrah for all the PIRATIZATION PROGRAMS ALL THESE YESRS.

  6. Dear Captain,

    Because people entrusted to do their jobs were asleep or told to close one or both eyes, we have another monstrous fraud created by people who have no scruples about skimming off our nation's resources for their own sorry ends.

    Our hope now lies in the PAC. Or so we think. As Ronald Reagan famously said, "Here we go again......", I too would like to say, here we go again. Hoping for the PAC to get to the bottom of this, or any other, mess and reveal all the sordid details.

    Here we go again putting our faith in one man, the redoubtable Mr Shahrir,to help us catch some rats.

    Rather than depending on a stringent system of checks and balances to nip problems in the bud, we hope for the cavalry to save us when the festering sore turns into a virulent cancer. Casting our hopeful eyes toward the PAC and such like, hoping for deliverance when in most cases they themselves are part of the problem brought in to create some mother of an eyewash.

    Assuming the PAC finds some wrongdoings, what then? Don't expect vultures and thieves to readily give up their pickings. Especially since the government is whistling the "here we go again let's give these crooks a helping hand" tune, again. We will have to live with this rot for a long time.

    I do, however, appreciate your faith in the PAC. We must have faith. As a responsible Malaysian who spent a lifetime at the Port contributing to its success, I'm sure you feel that you should give them all the help they need. I pray they will reciprocate your trust in full.

    Malaysians have grown tired of sandiwaras, empty talk and flailing at windmills, and are praying for some sincere action by the authorities. Action that will result in crooks spending time behind prison walls instead of spending time counting their ill gotten loot.

  7. anon:

    Mt Bojangles:

    We need a little faith. I am counting on a spunky God fearing former lady accountant colleague of mine to spill the beans to PAC today. If she doesnt then we will have to get back to the drawing board ..


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