PKFZ’s RM12 Billion Scandal - Where’re the Sharks?
Sunday, 31 May 2009
PKFZ (Port Klang Free Zone) scandal is perhaps the biggest scandal the country ever had so far from the legacy of former premier Mahathir Mohamad since the BMF scandal, that’s if you ignore the Central Bank’s losses from the foreign exchange speculation.
BMF (Bumiputra Malaysia Finance Ltd) scandal involved losses of about RM2.5 billion (that’s huge amount of money back in early 80s mind you) thanks to dubious loans to Hong Kong Carrian Group which collapsed in 1983 after the property crash. Carrian Group chairman George Tan (a Malaysian/Singaporean businessman), BMF chairman Lorraine Esme Osman (a longtime Tengku Razaleigh Hamzah associate) and BBMB (Bank Bumiputra Malaysia Berhad) executive director Mohd Mashim Shamsuddin were figures linked to the scandal.
Like it or not PKFZ is yet another shameful scandal although government-controlled news tried to play down the issue by using “weak project management” by PKA (Port Klang Authority) instead. Of course if the word “scandal” is used then many heads need to roll but a “weak project management” means people who were responsible for multi-billion of dollars of losses can be forgiven. Just like BMF scandal the Malaysian government was trying to cover-up the PKFZ scandal but the losses just got too huge to be swept under the carpet. And if not for the huge losses in peoples’ confidence in the current BN government as can be witnessed from the Mar 2008 general election, you must be mad to think that Najib’s administration would reveal the findings of PKFZ scandal by PricewaterhouseCoopers to the public.
..........continue at Stocktube.blogspot- PKFZ scandal
For more of the latest news on Malaysia - Malaysia News and Views
Sunday, May 31, 2009
Friday, May 29, 2009
PKFZ Scandal
Q+A-Why is Malaysia Port Klang scandal important?
Posted at Malaysia-Today Friday, 29 May 2009 10:28
(Forbes) Malaysia's government is to unveil later on Thursday an independent auditors report into the construction of a free trade zone in Port Klang, a project aimed at boosting capacity in the port.
What started off as a 1.8 billion Malaysian ringgit ($516.2 million) project has ballooned into one which could cost more than 10 billion ringgit following an acrimonious pullout by the project's Dubai-based international partner.
The issue raises the question of risk foreign investors face when doing business in Malaysia. It has been used to attack the integrity of the government by the opposition at a time when Malaysia's new prime minister is still reeling from losses in the 2008 general election.
The port authority is due to release the auditor's report at 3.30pm (0730GMT). Some members of the ruling coalition have been pressing for disclosure to prevent the project from tarnishing the government's image.
Transparency in the way Malaysia does business will be a major factor in whether it can attract much-needed foreign direct investment.
WHAT IS PKFZ? The Port Klang Free Trade Zone (PKFZ) started as a joint venture between the Port Klang Authority and the promoters of the Jebel Ali Free Trade Zone in 1999 to attract foreign investment and promote Malaysia's main ports situated near Kuala Lumpur.
HOW DID THE SCANDAL UNFOLD?
Land for the project was acquired by a company, Kuala Dimensi, whose shareholders include senior politicians from the ruling United Malays National Organisation (UMNO), the lead party in the National Front coalition that has ruled Malaysia for 51 years, as well as politicians from other Front component parties.
The port authority reportedly ignored advice from the government chief legal adviser and bought the land from the company in 2002 for 1 billion ringgit, or about 25 ringgit per square foot, compared with the 3 ringgit per square foot which the company acquired the land for.
The company was later awarded sole rights to develop the zone without competitive bidding. Kuala Dimensi later raised funds through the issuance of bonds backed by the Transport Ministry.
PricewaterhouseCoopers was later called in by the Port Klang Autrhority (PKA) to prepare a report amid mounting public anger.
PKFZ came under public scrutiny due to its escalating cost. Previously, the government had said the project would not cost more than 4.6 billion ringgit.
On 5 May, MPs briefed by the authority told reporters that the cost of the project could exceed 10 billion ringgit.
WHY DID THE FOREIGN PARTNER PULL OUT?
Jebel Ali Free Zone Internation (Jafza), the Dubai-based company appointed to managed PKFZ terminated its 15 year-contract, withdrew from the project in July 2007, citing 'strategic purposes'.
A newspaper report on Jafza's pullout, which cited documents relating to the project, said the separation was acrimonious and due among others to interference by politicians and others with vested interests.
BOND LIABILITIES
The Port Klang Authority (PKA) paid RM1.09 billion for the land to be settled over 15 years in a deal that was backed by a government guarantee and Kuala Dimensi sold bonds worth 1.3 billion ringgit. Kuala Dimensi sold 1.4 billion ringgit of bonds, again backed by a government guarantee to develop the site.
Two more tranches of bonds with a total face value of more than one billion ringgit were then sold.
POLITICAL DIMENSION
The heads of the PKA have all been senior leaders from the Malaysian Chinese Association, the second largest party in the National Front coalition.
Among its board members, Kuala Dimensi has Azim Zabidi, who was a one-time treasurer of UMNO. Tiong King Sing is director of Kuala Dimensi and treasurer of the Sarawak Progressive ( PGR - news - people ) Democratic Party, another member of the coalition.
Also involved in the project are a former UMNO youth leader from Selangor state, Faizal Abdullah, whose father-in-law, Onn Ismail, is another influential figure in Selangor UMNO, was a former chairman of the cooperative that sold the land to Kuala Dimensi.
More on PKFZ at Malaysia-Today
Other latest news on Malaysia
Posted at Malaysia-Today Friday, 29 May 2009 10:28
(Forbes) Malaysia's government is to unveil later on Thursday an independent auditors report into the construction of a free trade zone in Port Klang, a project aimed at boosting capacity in the port.
What started off as a 1.8 billion Malaysian ringgit ($516.2 million) project has ballooned into one which could cost more than 10 billion ringgit following an acrimonious pullout by the project's Dubai-based international partner.
The issue raises the question of risk foreign investors face when doing business in Malaysia. It has been used to attack the integrity of the government by the opposition at a time when Malaysia's new prime minister is still reeling from losses in the 2008 general election.
The port authority is due to release the auditor's report at 3.30pm (0730GMT). Some members of the ruling coalition have been pressing for disclosure to prevent the project from tarnishing the government's image.
Transparency in the way Malaysia does business will be a major factor in whether it can attract much-needed foreign direct investment.
WHAT IS PKFZ? The Port Klang Free Trade Zone (PKFZ) started as a joint venture between the Port Klang Authority and the promoters of the Jebel Ali Free Trade Zone in 1999 to attract foreign investment and promote Malaysia's main ports situated near Kuala Lumpur.
HOW DID THE SCANDAL UNFOLD?
Land for the project was acquired by a company, Kuala Dimensi, whose shareholders include senior politicians from the ruling United Malays National Organisation (UMNO), the lead party in the National Front coalition that has ruled Malaysia for 51 years, as well as politicians from other Front component parties.
The port authority reportedly ignored advice from the government chief legal adviser and bought the land from the company in 2002 for 1 billion ringgit, or about 25 ringgit per square foot, compared with the 3 ringgit per square foot which the company acquired the land for.
The company was later awarded sole rights to develop the zone without competitive bidding. Kuala Dimensi later raised funds through the issuance of bonds backed by the Transport Ministry.
PricewaterhouseCoopers was later called in by the Port Klang Autrhority (PKA) to prepare a report amid mounting public anger.
PKFZ came under public scrutiny due to its escalating cost. Previously, the government had said the project would not cost more than 4.6 billion ringgit.
On 5 May, MPs briefed by the authority told reporters that the cost of the project could exceed 10 billion ringgit.
WHY DID THE FOREIGN PARTNER PULL OUT?
Jebel Ali Free Zone Internation (Jafza), the Dubai-based company appointed to managed PKFZ terminated its 15 year-contract, withdrew from the project in July 2007, citing 'strategic purposes'.
A newspaper report on Jafza's pullout, which cited documents relating to the project, said the separation was acrimonious and due among others to interference by politicians and others with vested interests.
BOND LIABILITIES
The Port Klang Authority (PKA) paid RM1.09 billion for the land to be settled over 15 years in a deal that was backed by a government guarantee and Kuala Dimensi sold bonds worth 1.3 billion ringgit. Kuala Dimensi sold 1.4 billion ringgit of bonds, again backed by a government guarantee to develop the site.
Two more tranches of bonds with a total face value of more than one billion ringgit were then sold.
POLITICAL DIMENSION
The heads of the PKA have all been senior leaders from the Malaysian Chinese Association, the second largest party in the National Front coalition.
Among its board members, Kuala Dimensi has Azim Zabidi, who was a one-time treasurer of UMNO. Tiong King Sing is director of Kuala Dimensi and treasurer of the Sarawak Progressive ( PGR - news - people ) Democratic Party, another member of the coalition.
Also involved in the project are a former UMNO youth leader from Selangor state, Faizal Abdullah, whose father-in-law, Onn Ismail, is another influential figure in Selangor UMNO, was a former chairman of the cooperative that sold the land to Kuala Dimensi.
More on PKFZ at Malaysia-Today
Other latest news on Malaysia
- Report names four politicians
- ISA - Giving a ‘Positive Picture of Communists’?
- Statement by MAT ZAIN BIN IBRAHIM
- Invoke Judges' Code of Ethics: Investigate These Judges - Aliran
- So when has fasting become an offence?
- Cops arrest 19 over planned hunger strike - The Sun; 26 May 2009
- Malaysia set to announce recession
- Police abusing its role in going after BN critics - The Centre for Independent Journalism
Wednesday, May 27, 2009
Tuesday, May 26, 2009
Police going after BN Critics
Police abusing its role in going after BN critics - The Centre for Independent Journalism
The Centre for Independent Journalism
The Centre for Independent Journalism (CIJ) strongly protests the continuing police arrests and a related raid at the headquarters of opposition party, the Democratic Action Party (DAP) to eliminate critical expression about the political crisis in Perak state.
The raid was conducted on 23 May and police seized a computer, DVDs and pamphlets about the political crisis. Police has already arrested 11 people on 19 May and 16 two days later this month for holding candlelight vigils to protest the Barisan Nasional (BN) takeover of the state and its refusal to hold fresh elections. ....more at Malaysia-Today
- Malaysia set to announce recession
- Pilihanraya (Kecil atau Umum) Bukan Satu Pembaziran (in Malay)
- PDRM- A tale of the tail wagging the dog - 25 May 2009
- JobsMalaysia to open 22 centres nationwide
- Khalid slams police for roughing up Jenice, other Perak dissenters
- RPK found, Bala still MISSING !
- The end for B..End
- Police raid DAP HQ without warrant
- Court of Appeal judgment is a flop
- Malaysian Appeals Court Deals Setback to the Opposition - The Wall Street Journal
- Arresting The Illegal Arrests
- TVSelangor launched
- Selangorkini launch
...more news links at myMalaysiabooks Blog News
Tuesday, May 19, 2009
Virus cases and education in Malaysia
- Nizar is only answerable to state assembly – High Court judge
- Ganesan’s presence caused and contributed to State Assembly ruckus - Aliran
- Only 20pc of PSD scholarships given on merit - the Malaysian Insider
- A (H1N1): Second confirmed case in Malaysia - the Star
- Return of the king...
- Quit now, lawyers tell IGP, home minister (Malaysiakini TV)
- Also Read: Right to legal representation
- Influential scholar urges Muslims to shed victim role - The Malaysian Insider
- Do the honourable thing, Najib
- Malaysia confirms first case of A(H1N1)flue - the Star; 15 May 2009
- Iban Student deprived of her rights
- 'No review of PSD scholarship selection criteria' - NST
- Literally paying to own a car - TheStar
Thursday, May 14, 2009
Wednesday, May 13, 2009
MB Nizar Vs Zambry
Links to Latest Perak news
- Judge Ramli’s stay order puzzling, disturbing
- Zambry resumes duty, but as what?
- Royal Shame? - Straight Talk
- The Perak Debacle - Malaysia Today
- Semua Pihak Mahu DUN Perak Dibubarkan Kecuali Najib dan Zambry? (in Malay)
- Perak crisis: Stay of execution granted; Zambry to resume duties
- Perak: Cooperating for a solution.
- Unprofessional police conduct forces Nizar to pray by roadside
- The impact of Nizar Vs Zambry
- Nizar is MB - The Malaysian Insider
Monday, May 11, 2009
Latest on Perak News
- Nizar is rightful MB: High Court - the Star; 11 May 2009
- A lot of growing up to do
- The Lesson from Perak
- Antara dosa dan jenayah (in Malay)
- A tribute to RPK: storm the Bastille!
- Famous last words — The Malaysian Insider
- Malaysia government wrests control of state, 65 arrested - Reuters
- How could it come to this?
- When the Deputy Speaker ruled over the Speaker
- Know your rights
- Guan Eng: Democracy is dead
- Its all about race, stupid!
- More question legality of yesterday's Perak Assembly decisions
- 'Rape of democracy' at Perak assembly
....more news link at myMalaysiabooks/News
Friday, May 8, 2009
Monday, May 4, 2009
Malaysia - April to May
- To Reach First World, Malaysia has to pass Gabon - the Malaysia Insider
- Why con a stupid Chinaman
- A (H1N1) FLU & YOU - the Star
- N.H. Chan: An inconvenient judge - The Malaysia Insider
- Usurper Zambry plotting 2nd unethical, undemocratic, illegal power grab to remove Perak Speaker Sivakumar
- They will all go to hell, but you might end up joining them - 30 April 2009
- Can one convert a child to Islam Mohamad Hafiz Hassan
- Much more needs to be done
- Bumi proviso removed to rope in more investments, says Najib - the Star
- Rulers must not lord over us
- FREEDOM OF EXPRESSION AWARD 2009 RECIPIENTS ANNOUNCED
- Restriction on Religions by Humans
Subscribe to:
Posts (Atom)