S.H.I.T.

You may have noticed that I have been saying sheeesh a lot lately. Actually, this is just a bastardisation of the above four-letter word which means crap or dung or whatever we old sailors often use in polite company. Perhaps we can be forgiven for taking liberties with the language when other "normal" people would not.

Someone sent me a light-hearted e-mail some time ago giving the supposedly true origin of this rude word as a nautical term, used when transporting manure as fertilizer deep in the holds of old sailing ships. The message claims that when manure gets wet, it produces methane gas, which can collect in the hold and blow up the ship when someone lights a candle or lantern. To prevent this, crates or sacks of dung were marked S.H.I.T., meaning "Ship High In Transit" to avoid contact with sea water. But I believe that this is also a lot of ... you-know-what.

My friend and fellow mariner Capt. Leibbrandt (you may have seen him playing colonial mat salleh types in some local made-for-TV movies) have confirmed that the word is indeed derived from the Olde English scitte and probably related to the Dutch word schijten, which means "diarrhoea'. Or the Malay equivalent cirit birit.

We are a little mealy-mouthed these days about the word, one of those classic Anglo-Saxon four-letter words, even though it is among the most common expletives known. When it first appeared, though, I believe there were no negative or vulgar associations or connotations about it and indeed some have even claimed that it is a truly pukka original golf term!

Sheeesh.

The Truth Hurts

Fellow mariner Capt Karim Stuart Russell e-mailed me yesterday a copy of an interesting article by Michael Backman, a columnist from the Age of Australia - a favourite holiday destination for our jetsetting politicians, lawyers and judges. Thanks Stu. Read the full article here. (Fellow blogger Jeff Ooi of Screenshots also has the story, here.)

Here are excerpts from the article which caught my eye:

"The third incident relates to an ongoing scandal at the Port Klang Free Trade Zone - Port Klang is Malaysia's main shipping port. Essentially, the port authority was forced by well-connected individuals to buy far more land than planned for the free trade zone and at highly inflated prices, even though it could have compulsorily acquired the land, literally saving billions. This and development costs, and "professional fees", blew out the total cost for the zone from 1.845 billion ringgit to 4.2 billion ringgit. It is a scam of outrageous proportions and is just the sort of thing that is turning foreign investors off Malaysia in their droves."

"Malaysia is truly at a cross-road. It has many good people with great potential but it is slipping beneath the waves of mediocrity, weighed down by officials intent on an orgy of plunder while the ship's captain stands idly by."

Who made this bum captain?

Unless Pak Lah is fast asleep, I believe he cannot afford to ignore damning reports like these by foreign correspondents or else we can kiss foreign direct investments (FDI) goodbye, and thats fair dinkum*, mate.

* Aussie slang for 'the real truth'. I used to think this means 'nice kangaroo' or something ...

RCI

Much has been written and blogged about the 'Lingam tape' biznes and I believe this is getting a bit out of hand. Malaysiakini today reports that former deputy premier Anwar Ibrahim who has insisted on a Royal Commission of Inquiry (RCI) has said 'no way' to the Anti-Corruption Agency's demands that he hands over the original full version of the tape or face imprisonment. This will effectively put him out of the race for the next general elections. Sheeesh.

As for the recent Seagull Express ferry mishap, fellow mariner Capt. Karim a.k.a. Capt Abdul Karim Stuart Russell asserts that "superficial investigations are only scratching the surface, there must be a web of malpractices awaiting exposure and there will be many others who should be thoroughly investigated for possible criminal neglect, dereliction of duty, bribery and corruption, and even other even more serious offences like manslaughter." As such, short of a Royal Commission of Inquiry, a truly professional and " independent Marine Accident Investigation Board should be established to properly investigate the ferry disaster and all other marine accidents."

I fail to understand the government's morbid fear of RCI's or any other independent and all-powerful inquiry panels to get to the bottom of things, but we can all have a pretty good guess, eh?

Footnote: Above photo taken at Anwar and Azizah's 'open house' on Sunday. Besides meeting other former MCKK classmates, I also bumped into Lim Kit Siang, fellow blogger Nathaniel Tan and an old friend and former Penang Port Commission chairman Dato Zaharin Hashim.

PAC visits PKFZ

The Public Accounts Committee (PAC) led by chairman Dato Shahrir Samad visited the scandal ridden Port Klang Free Zone (PKFZ) in Pulau Indah today. Watch above Malaysiakini video from You Tube. (Click on arrow to play).

PAC could not have seen much development taking place and I can gather from Shahrir's tone of voice that he wasn't very impressed although he must have been told that everything was peachy and according to plan, i.e. mengikut perancangan. There is also the Attorney General's testimony in the offing about procedures and questions about the land procurement.

Was the bail-out oso 'according to plan', meh?

That Sinking Feeling

(Source: the Star online)

Today's newspapers and Malaysiakini reports of a maritime disaster off Mersing where "survivors of a Malaysian ferry fire which left four dead and four injured described a terrifying scene as the ageing vessel filled with smoke, forcing them to hurl their children into the sea". The Star reports of the ferry Seagull Express that "On Saturday, 4 passengers of the ferry drowned while 99 others, including 3 crew members, were plucked out from the sea after the vessel caught fire while on its way to Pulau Tioman. Three other passengers are still missing."

Sheesh. I have always thought that this sort of thing can only happen in places like the Philippines or Indonesia where they are very relak about safety standards. But here in Malaysia? Obviously heads must roll and as usual the Ministry of Transport will just await reports which will take some time coming.

Fellow mariner Capt Karim comments in my previous blog about the possibility of criminal negligence on the part of authorities and recommends the setup of an independent professional Marine Accident Investigation Board tasked to investigate all marine casualties. This is especially so as in the past, "maritime incidents have been poorly investigated and shortcomings have been simply swept under the carpet. In many cases the guilty were not punished. Innocent lives will continue to be lost at sea if the typical Malaysian lackadaisical 'tiada apa' attitude continues unchecked."

I do concur. Only when innocent lives are lost are the wheels of government usually set to turn. Here I was told that in the case of the PKFZ debacle or the current mess in the judiciary and unlike the Hong Kong BMF scandal where someone, an accountant I believe, was murdered, we can forget about Royal Commissions of Inquiry. Unless someone gets bumped off first, that is.

Eid Mubarak

I used to send out greeting cards by the hundreds, or rather my secretary did, but stopped doing so when I went into early retirement some years ago. I have also not received any since, well maybe a few, at about the same time. Its not that I am a cheapskate or something but somehow greeting cards have never really meant much to me. This is probably a throwback to my sailing days when we seamen will usually receive our mail after many days, even weeks after the fact when we reach a main port of call. A bit of a dampener you will agree.

So here's wishing everyone Eid Mubarak or Selamat Hari Raya Idilfitri as we say it here in Malaysia. To all those driving balik kampung, remember that you may be the best driver in the world but its the nut on the other side of the road you will have to worry about.

Time Out

Sorry folks that was a long time out indeed.

Its just that after a half a century of fasting during Ramadan, you realise that you are no longer a spring chicken and it takes a toll on you. You are not really your usual sweet self. You lose a few kilos which you will undoubtedly put on again after a couple of weeks and try as much as you like to kick your nicotine fix habit, the last stick puff after sahur is still the best yet.

Ah well, still a couple of days to go.

Whither PAC?

OK, so I was wrong.

I must confess I was greatly encouraged at the outset by the fact that a couple of senior members of the Public Accounts Committee (PAC) appeared convinced that there was no way that the perpetrators in the Port Klang Free Zone (PKFZ) debacle could escape what was coming to them. Suffice to say that I am very disappointed now though I am not that naive to have expected anything much. Quite evidently there were greater forces at play. Also in question is the lack of political will and precise terms of reference for PAC to make it truly effective so as to provide the necessary checks and balance for the whole system.

So Shahril, before you expose yourself further as a liar and a cad (in the holy month of Ramadan too) and a poor excuse for a chairman of PAC, please get the Attorney General to explain why the PKFZ land was acquired at such an exorbitant price. We are quite sure now what his learned answer will be, beyond any shadow of doubt.

Perhaps the only way out of this wayang kulit farce is to press for the setting up of more independent Royal Comissions of Inquiry (RCI) but then again, past experience has also shown that RCIs are really no guarantee as panacea for the country's ills. But it is a start and definitely a step in the right direction.

A Right Royal Mess

There comes a time in a man's life, when faced with such a right royal adversity and a right royal mess in the country's law making institutions, he may just say what the fish, why do I givashit, maybe I should just roll over and play dead.

I salute the country's lawyers for saying "enough is enough" and demanding the set up of an independent Royal Commission of Inquiry to sort out the mess in the judiciary. This is probably the only way out for all of us to get to the bottom of things, including the RM4.6 billion Port Klang Free Zone (PKFZ) fiasco.

After the latest Public Accounts Committee (PAC) hearing, I have reasons to believe that some PAC members may now want to scuttle the PKFZ issue. (Malaysiakini reports that chairman Dato Shahrir Samad is set to retire, so dammit sir, here's a chance for you to do a last decent thing before you go and sail away into the sunset). But some interesting points have now emerged:

> Jebel Ali Free Zone Authority (JAFZA) carried out the 'study' for the project.

> It was Jebel Ali's suggestion of '1,000 acres". (I believe and some maintain that Jebel Ali actually mentioned two phases.)

> On 3 November, 1998 Bintulu MP Dato' Tiong King Sing acted as sole land sale representative of Kuala Dimensi Sdn Bhd..(A damn right royal sinister situation here, old bean. More on the role of the so called Foo Chow Mafia later, and guess who is the numero uno Foo Chow in this country?)

> The government Valuation Department did four separate valuations on different lots of the 999.27 acres.

In Nov 98, the Department's valuation was RM 17 psf,
in May, 2000 RM 18 psf and
in Sept 2000 RM 21 psf.
But in August, 2001, the valuation for acquisition was only RM 10.16 psf.!

> The Attorney-General will be invited by PAC to give his version of the proposal to acquire the land. Had the Selangor State more power than the Federal government, so much as that it could insist on the purchase of the land? When the Federal Government acquired the KLIA land in Sepang, the State Government could not or did not veto. (Some may recall at one time the site of the PKFZ in Pulau Indah was also considered for the new KLIA. Go figure).

A right royal mess indeed, and we also truly need an independent Royal Commission of Inquiry to sort out of this quagmire.

Letter to PAC

22 September 2007

YB Dato’ Shahrir Samad
Chairman,
Public Accounts Committee.

All Members,
Public Accounts Committee.

YB Dato’,

PER: PORT KLANG FREE ZONE (PKFZ) INVESTIGATION BY PUBLIC ACCOUNTS COMMITTEE

As a concerned citizen I strongly believe that the Public Accounts Committee (PAC) has a moral responsibility to the rakyat to seriously look at the massive cost overrun that has taken place in the development of the Port Klang Free Zone (PKFZ). I also strongly believe that PAC should rightfully address the issue of possible Criminal Breach of Trust (CBT) on the part of the officers given responsibility to carry out this project and not restrict themselves as to whether the project is indeed a ‘bail-out’. The issue of a bail-out has become that of public concern due to the commitment given by the Prime Minister when he took over office. One should not however forget as to why this bail-out comes about. I have reasons to believe total mismanagement with intention to cheat the Government and to amass ill-gotten gains seems the reason for the massive cost overruns. All issues from the very beginning to the final commitment to a tune of RM4.6 billion were carried out without moral responsibility, accountability and good governance towards the organization and the nation.

2. In this regard, I would like to appeal to the Committee to seriously take into consideration the various issues under two sub-headings that have been raised in the attached document. One is related to bail-out. The next which I believe is more serious, is the issue related to a CBT. In my opinion this is a serious matter as this has become a point of contention among Malaysians. If this is not addressed and the culprits brought to book, what will become of rules, regulations and procedures? I am certain that if these are not adhered to, it will lead to a total collapse of the Government machinery.

Best regards,

Capt. Yusof Ahmad
The Ancient Mariner
http://cyusof.blogspot.com/

PKFZ = CBT?

I get the feeling I may have started to sound off like a broken record to some with my seeming 'obsession' and single minded pursuit of this Port Klang Free Zone (PKFZ) thingy, but what the fish, I reckon I do have some measure of locus standi or whatever since I am a former employee of the port. My simple objective is to see justice done and to throw the book at the crooks involved in this blatant cheating of the rakyat, without fear or favour.

This morning, together with a couple of former port colleagues I went to meet veteran politician and MIC vice president YB Tan Sri Dato Dr. K.S. Nijhar (photo) at his office in Bangsar. The YB is also MP for Subang and a member of the Public Accounts Committee (PAC) which will meet again next week on the 25th and 26th September for another round of inquiry into the PKFZ debacle.

The meeting was very cordial and I briefed the YB about points which I have raised earlier in my blogs. I also emphasized the need to call a couple of very important Lembaga Pelabuhan Kelang (LPK) officials who were somehow inadvertently left out during the first inquiry. The main issue is simply to find out why government procedures on matters involving huge sums of money were not followed, which led to the port being saddled with a massive debt and have to be bailed out with a dubious 'soft loan'. The rakyat must be told if there were deliberate attempts by certain quarters to mislead the government for monetary gains and hence they should all be guilty of criminal breach of trust (CBT).

We also discussed the powers and limitations of the AG and PAC and where do we go from here, etc., etc.

Footnote: Above photo is from the Malaysian Parliament website. I had brought my camera but Tan Sri Nijhar politely declined to be photographed with me lest he be accused of trying get publicity to gain political mileage. Sheeesh.

PKFZ in Fairplay

The Public Accounts Committee (PAC) chaired by Dato Shahrir Samad will meet again on Tuesday 25th for another round of probing into the Port Klang Free Zone (PKFZ) scandal. Despite an almost complete blackout of all news on the subject by our newspapers, the international shipping weekly Fairplay, a more than a century old publication of the influential Lloyd's Register of London has again picked up this story of our national shame and featured it in a recent edition:

Newswatch
Fairplay International Shipping Weekly
06 Sep 2007

Klang a microcosm of Malaysia’s malaise
A scandalous land deal involving Port Klang Authority escapes public scrutiny. Jaya Prakash reports that the backlash is likely to affect coming elections.

AN EMBATTLED Port Klang Authority has escaped public scrutiny for cost overruns of more than $1Bn that have been incurred in operating a free-trade zone. The case appears to be a microcosm of a deeper malaise that runs through Malaysian business.

Port managers have spent several months battling media and public hostility over the controversial – some say scandalous – decision to acquire a land holding tagged at $7 per square foot from Malaysian company Kuala Dimensi. The same company had earlier bought the same plot at an unbelievably low price of $0.86/ft. Kuala Dimensi is headed by Azim Zabidi, who is a politician in Malaysia’s ruling United Malays National Organisation.

There have also been ethical issues involving high-ranking Port Klang Authority executives contracting work from companies in which they had pecuniary interests. This work was directed toward developing 500 warehouses in a 400ha of land in Pulau Indah. Any prospects for a full disclosure of the circumstances leading to the free-zone deal appear to have evaporated on 27 August, when Ramli Ngah Talib, speaker of Malaysia’s parliament, opposed an ‘urgent motion’ by Lim Kit Siang, leader of the country’s political opposition, for a debate on the free-zone issue. Lim spoke to Fairplay about the conflicts and stressed the importance of bringing “culprits to book”.

The free-zone issue is a test case of Prime Minister Abdullah Badawi’s 2003 pledge that the government would not bail out failing companies, declared Lim. He added that now that a bailout has indeed happened, the government’s move amounts to a “U-turn” of Badawi’s pledge. The debacle only scratches the surface of something deeper and more sinister, he continued. “It has to do with the entire system,” he warned, leaving few in any doubt that the issues go wider than just the managers at Port Klang Authority.

In 2003, the port authority was declared “financially insolvent” by the country’s auditor-general. Despite the finding, however, no investigations have ever been commissioned to get to the bottom of the Klang crisis.

In statements given to Fairplay, Transparency International Malaysia spoke of serious repercussions for Malaysia. TI-M president Tan Sri Ramon Navaratnam said: “The absence of investigation could raise serious concerns over the apparent lack of good governance. In Malaysia, we have a lively parliament with a significant opposition, and we hope the debate will continue and the electorate will follow the debate.” Navaratnam added that TI-M is prepared to help combat corruption alongside a newly commissioned Public Accounts Committee, which is to investigate Port Klang Free Zone.

Fairplay first reported on investigations into the free-zone issue in May, parallel to reports by Malaysia’s fiercely independent political portal Malaysiakini, among others. The effective closure of public debate will now push the discussion underground, which could prove costly for Badawi’s administration in an election year. He has already bailed out other failing corporations.

A letter to Malaysiakini last month slammed the transport ministry for denying any instance of fraud, irregularity or malpractice in Port Klang Free Zone. If allegations to the contrary are correct, the writer surmised, the only conclusion to be reached is that the port’s managers were simply incompetent and showed no organisational ability and hardly any knowledge about management.
________________________________________

Shock After Shock

This was The Star's front page headline yesterday. While we can emphatise with the Indonesians for experiencing yet another devastating earthquake, I believe we poor Malaysians are really no better off with our own man made calamities. This is the same newspaper which front paged photos of screwdrivers to highlight the Auditor General's shocking recent findings a few days ago but relegated news about the Port Klang Free Zone (PKFZ) to the inside pages. Perhaps this was because the latter involved an MCA ministry? A cheap shot, if you ask me, and a rather juvenile and pathetic attempt to divert public attention.

I had a post iftar (buka puasa) supper with a few of my ex Klang Port Authority mates a couple of nights ago and they include a couple of senior officials from PKFZ. Some very interesting if not shocking points have now surfaced:

> The RM15 million a year 15-year management contract with Jebel Ali Free Zone Authority (JAFZA) included a clause which stipulated JAFZA will continue to be paid if the contract is terminated for any reason by either party. Thats RM225 million down the drain. Who drew up this half past six contract?

> A contract for laying a 20 km cable pipeline was priced at a shocking RM500 million, which comes to RM25 million per km. (If you recall the land was also priced at RM25 per sq ft. and they obviously must have a preference for this magic number). Is there any limit to man's greed?

Well, as they say, watch this space for more after shocks.

Human Suffering

'Budget Day' has come and gone. The authorities would call it a 'painless budget' to reduce suffering for the rakyat. But then again, what is 'suffering'?

An old friend once asked how is it that one citizen of the USA seems to suffer more deprivation during a freak storm like the Katrina than a whole city of Indians in flood-hit Mumbai who have never had running hot water, or a steady supply of food? Some of the people in the newspapers and on TV seem not to be the poorest citizens who are usually the colour of the street - dressed in rags. Yet even these "well dressed" Indians seem to endure the mess they find themselves in without fists raised in slogan shouting. They do not take good health or safety for granted, and do not demand these things. The poorest don't even get a mention - no-one knows how they feel or what they think.

Or maybe this is just me romanticising Asia and Asians. There are many people in the US and Europe too, who must endure terrible pain and suffering.

I know it is necessary to try to get rid of as much suffering as possible, but also how to learn to deal with it without pointing fingers and blaming others. It is necessary to embrace suffering also... work through it, and learn its lessons.

Lebanese poet Khalil Gibran once wrote:

Your pain is the breaking of the shell
that encloses your understanding.

Even as the stone of the fruit must break,
that its heart may stand in the sun,
so must you know pain.

And could you keep your heart in wonder
at the daily miracles of your life,
your pain would not seem less wondrous than your joy ...

In a few days the fasting month starts. One of the terms of reference of the ibadah is to experience the hunger and suffering of the poor. So lets also take time to reflect on where we are, where we are going and whether we have the correct aptitude and moral courage for it. Some of us are now approaching an age where the little aches and pains manifest themselves, and as we become much more aware of the pain and sufferings in life, lets hope we will all be able to face it with courage and even wonder ...

Selamat Berpuasa.

PKFZ - Shahrir O Shahrir

Public Accounts Committee (PAC) chairman Dato Shahrir Samad (photo) was one year my junior and my brother Kassim's classmate in MCKK more than 40 years ago. I dont really remember him being particularly outstanding in school but as reported by Malaysiakini yesterday, he must have outdone himself when he declared that the PKFZ problem "may be bigger than what was reported in the media."

I say brudder dont we all know that already.

After PAC's handling of the ECM Libra-Avenue Capital issue, not everyone is holding his breath when PAC called Lembaga Pelabuhan Klang (LPK) officials for an inquiry into the Port Klang Free Zone (PKFZ) scandal yesterday. Now's probably a chance for them to redeem themselves. Shahrir also told reporters after the meeting in Parliament that it resulted in more questions than answers. "We will be meeting LPK officers again during the fasting month to further clarify issues surrounding the PKFZ,” he said. The next meeting will also see the participation of the Valuation Department and Securities Commission.

OK, so now we are getting somewhere. It must be borne in mind that these people are above all, civil servants. A probable stock answer must surely be the same used by Nazi generals at the Nuremberg trials: Saya menurut perintah.

So who gave the orders?

Is it true that port officials were forced to sign cheques and documents against their will and had to do so under protest?

The inquiry will be conducted during the holy month of Ramadan. So boys and girls remember that kalau bohong nanti berdosa tau? Remember that God will be watching and the rakyat will be watching.

The whole bloody world will also be watching us now.

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.

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?

PKFZ - the DAP Factor

I met Opposition leader Lim Kit Siang and his small entourage from the Democratic Action Party (DAP) for a quick chat before he left for Ipoh yesterday. The venerable Yang Berhormat has been following my blogs and wanted to hear my views straight from the horse's mouth before he tables a motion to debate the RM4.6 billion Port Klang Free Zone (PKFZ) debacle in the Dewan Rakyat today.

Mr. Lim has no pretensions that he will be stopped in his tracks by the Speaker of the august house as has been done many times before, but he will plod on nevertheless. He has promised to keep bringing up the subject in the parliament at every available opportunity to force the issue out in the open.

I suppose as commented by Mr Bojangles in my previous blog posting: ".... if we let them know what we genuinely think of them in their stuffed faces, since they all seem to be in lala land like their big boss, it may hopefully engender some accountability - and make us less of hypocrites to boot."

Update: Malaysiakini reports Dewan Rakyat speaker Ramli Ngah Talib rejected the ‘urgent motion’ put by Opposition Leader Lim Kit Siang to debate the RM4.6 billion bailout of the troubled P. Klang Free Zone as Parliament resumes today.

PKFZ - Bail Out! Bail Out!

Lets call a spade a spade, eh?

After keeping mum all this while, NST, the Star and other mainstream press today finally gleefully headlined a 5 page statement handed out by the Ministry of Transport in Pulau Indah which glossed over the entire sickening RM4.6 billion affair. Port Klang Free Zone (PKFZ) new general manager for business development K.L. Chia, who happens to be an old friend of mine and barely a couple of months in his hot seat, had to do the honours while the minister and other Lembaga Pelabuhan Klang (LPK) officials were conspicuously absent.


PKFZ Convention Centre

It boggles the mind that the Ministry of Transport has deftly side stepped the issues of accountability and good governance but instead hinted darkly that the Jebel Ali Free Zone Authority (JAFZA) which had cut short its 15 year management contract, was mainly responsible for the huge cost overruns. It would be interesting to hear what JAFZA will have to say about this. From what I hear their parting of ways was far from amicable and that the 'strategic' reasons JAFZA purportedly gave is a lot of bull crap.

TheSun newspaper today also questioned why didnt Kuala Dimensi Sdn.Bhd. develop PKFZ itself if the project was seen to be viable and a potential goldmine. The rakyat must be told who are the people behind all this. The fact that LPK is now bordering on insolvency and has to be bailed out with a dubious 'soft loan', the terms of which are still fuzzy leaves much to be desired. This will surely be the nation's biggest bail out to date.

It appears it is now left to the parliamentary Public Accounts Committee (PAC) to act and call for a probe into 'possible' corruption in the entire sordid affair. Malaysiakini also reports that Opposition leader Lim Kit Siang will make it the first order of business when the Parliament reconvenes on Monday to discuss the bailout, if he has his way that is.

PKFZ - An Open Letter

I am very honoured indeed to have received a copy of an open letter today from my former boss Datuk M. Rajasingam, former General Manager of the Lembaga Pelabuhan Klang (LPK) or Klang Port Authority. His letter traced the history of Port Klang and the many trials and tribulations every port worker went through the last couple of decades, leading to the port becoming one of the top 20 container ports in the world. He has also expressed his unhappiness over the financial mismanagement of LPK and the sad state of affairs vis-à-vis the Port Klang Free Zone (PKFZ).

Since his retirement in 1997, Datuk Rajasingam has been busy providing consultation services on port operations and management on behalf of the Asian Development Bank, the World Bank and several other institutions in many countries including India, Pakistan, Bangladesh, S. Africa and elsewhere.

To read his letter, click here.

Update: Malaysiakini reports that PAC chairman Dato Shahrir Samad has called for a probe on corruption on the PKFZ RM4.6 billion bailout, here.