On April 29th 2009, Transport Minister Datuk Seri Ong Tee Keat assured
Malaysians that he had given the Port Klang Authority (PKA) one week to release the Pricewaterhouse Coopers (PwC) report on the Port Klang Free Zone (PKFZ).
A week later, the report was still not released. PKA chairman Datuk Lee Hwa Beng has instead came up with various claims including stating that the report can only be released with PwC’s consent.
This simply means that the Transport Minister’s tough talk about making the report available to the public was just another empty promise. It also reflects the weakness of the Minister when the PKA chairman made a mockery of the Minister’s promise.
Where was this tough talk last week with regards to bringing the report to the Malaysian Anti-Corruption Commission (MACC) when the report could not even be released to the public today? It was in fact supposed to be released to the public on the 6th of May 2009 but this has yet to happen.
According to The Sun news report on May 6th 2009, PwC is said to have discovered several situations of conflict of interest. Below is the reproduction of The Sun news report on May 6th 2009:
* Sementa Assemblyman Datuk Abdul Rahman Palil was both the Pulau Lumut Development Co-operative (KPPL) chairman and a Port Klang Authority (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 sale and purchase agreement between KPPL and turnkey contractor Kuala Dimensi Sdn Bhd (KDSB). Its senior partner Datuk Abdul Rashid Asari was the deputy chief of Umno’s Kapar division, where Tan Sri Onn Ismail is an exco member. Onn was the KPPL chairman and his son-in-law Faizal Abdullah, the then Kapar Umno division youth chief, is also the deputy CEO of Wijaya Baru Global Bhd (WBGB), the firm appointed by KDSB as the main subcontactor;
* Perunding BE Sdn Bhd, appointed by PKA as the independent quantity surveyor for PKFZ, was also a quantity surveyor for KDSB;
* PKA’s board of directors were not advised that the chairman of PKA at one time was also the deputy chairman of WGBG;
* KDSB directors Omar Latip and Idris Mat jani are also directors and shareholders of WBGB.
Today (May 9) The Sun columnist Terence Fernandez asks further questions on the scandal, and I quote him as reported by The Sun:
* Why did former PKFZ general manager Datin Paduka O.C. Phang enter into deals without the authorisation of the board of the PKA?
* Why were government agencies not consulted and the views of the attorney general not heeded?
* Why was there no due diligence done for a project that cost over RM1 billion?
* Why did past transport ministers issue guarantees they were unauthorised to do so?
* Why weren’t open tenders called?
* How could those in the know allow the PKA chairman to take his seat knowing he had vested interests in a company dealing with PKFZ?
* How does Backbenchers Club chairman, Bintulu MP Datuk Seri Tiong King Sing reconcile his role of being the voice of the people in Parliament, having taken an oath to protect their interests, with the fact that his company is implicated in questionable dealings to make millions from taxpayers’ money?
These are questions that demand immediate answers. The Transport Minister as well as the Prime Minister should not hide behind so-called technicalities in delaying the release of the PKFZ report.
After all we Malaysians are only expecting the best from the government that has promised us to put People First and Performance Now. The question that begs to be answered is, “are things just actually getting worse from the previous administration?”
If PwC is the hurdle, we should question PwC:
1) What consent they need to release the report?
2) Do they understand what is their role as an auditor?
3) Who are the (actual) stakeholder in this audit vs. who pay them the audit fees?
Is PwC following what Arthur Anderson had done to Enron?
There’s one main reason we can think of why there is a further delay in releasing the PKFZ scandal report. The Transport Minister who is MCA President is busy fighting with his No. Two so much so that he does not have enough time to get ready with the report that the rakyat demanded to know. Or the losses of the PKFZ scandal get rising with billions by the year so much so that there must be some manipulation to do to get to the right figure to deceive the public before releasing the report.
When will the report be out now? Your guess is as good as mine!
As a responsible professional firm, PwC would have contractually stated that their audit report be accepted in toto i.e they will not sign off any cut & paste reports. For example, in order to save somebody from prosecution or further investigations, OTK may want to omit certain part of the reports. PwC will not allow it if it impairs the findings even though PKZ is a paying client. So that may be the reason for them to delay the release or they may still be in negotiations on what can or cannot be reported. So really don’t be too impatient.
the report is not going to be released out until there is ratification within the BN! how to simpan all the dust and their dirty laundry under their own carpet!
OTK is the same like any other MCA leaders who are only taking care of their own pockets and claiming themselves helping the chinese community in M’sia.
Pray such leaders shall perish fm M’sia politic arena. Vote for DAP, PAS, PKR!…. let BN tumble! teach them a lesson!
As I have mentioned before, MCA and other ruling component parties who claim to represent the rakyat are NO MORE, I repeat NO MORE relevant since 0308. These guys are just a bunch of parasites.
Particularly that MCA guy “OKT” ooppps… OTK talks like a canon. Very loud but never ever accurate. This goes to show the type of people who are supposed to represent the rakyat or for that matter the chinese community.
And for the release of the PKFZ scandal report, the rakyat will have to wait until the cows come home. If the report ever comes out, I can guarantee it will be a “cut and paste” version.
Teresa:
you need to understand the basic of corruption mechanism in Malaysia or all over the world!
Let me elaborate:
Firstly, for corruption to occur you need one powerful politician, one shrew businessman or woman, and one out-of-line consultant.
The politician will use his/her power to award, the businessman use his dirty money to chase after good money and the consultant to create mega project.
The conspiracy or the entire syndicate is protected by the consultant.
secondly, if the dirty deal is exposed owing mainly to unequal distribution of profit, the politician will claim that he/she is unaware of the irregularity as he/she acted based on consultant’s recommendation. The businessman will claim that he is paid based on consultant’s certification.
Based on this valid line of defense, there is only professional negligence on the part of the consultant and no corruption.
The worst scenario will be the entire syndicate is charged with conspiracy to cheat. The best scenario, which often is the case, they just regurgitate the money they greedily swallowed. However, under such circumstance, the advanced payment to politician- since there is no record of the transaction- is locked in account somewhere in the world.
So if you are accusing politician or businessman of corruption practice without knowing how the corruption mechanism works, you will have a handful of problem. That’s what happens to MCA’s chief!
teresa:
so the PKFZ is the perfect storm for corruption.
Teresa:
So if you want the truth, go for the consultant! Consultants and government servants owing to their unfortunate position in society are often the instrument of the powerful politician and businessman.
The politician and businessman are used to political pressure and police interrogation but not the consultant. They both know exactly how to wipe their faces squeeze clean after a hefty meal!
In the course of the project, the consultants need to fabricate fictitious facts and works regularly in order to satisfy the constant siphoning of project funds demanded by the politician and businessman. Hence, their faces are always dirty and they have little time or opportunity to wipe them off! They will have to fabricate a lot of lies to cover the previous lie! That’s where they can easily make a mistake!
The consultants get the least out of the deal. As they have little wealth to defense themselves, they are more likely to crack under pressure; and, as such disclose the truth.
Even if they crack under pressure, chances are they have very little knowledge of how the ill-gotten wealth was distributed, so the investigation will hit a dead end.
If you have read a few recent high profile cases on corruption, all are acquitted and they are politician and high ranking government servant! So do not be surprised the same will happen in PKFZ.
In the case of PKFZ, the investigation will hit a dead end. The consultant and the government servants involved will take the full beating! They will be the scapegoat; they will be fined and jailed. The politician will be free so will the businessman.
Not that the judicial system do not work, it is just that the politician and businessman out smart the system! The trick is simple, i.e. do not leave any paper trail; and, if you are caught blame them all on the negligence of the consultant and the ignorant of the government servants!
the comunity get the least out of the promise.once had been said and been reiterated many time “rakyat didahulukan pencapaian diutamakan”..but still until now notihing is fulfill.The malaysian are still questioning where is their nice confession that they will try to make the out of malaysian???
I felt foubtful about the past admission and still been continue until now.Like last rethoric said pertaining Islam hadhati and now is one malaysia.(isnt a kind more liberatation but it better precail what are they goinna do rarther than implicit rhetoric.
WE WANT THE QUALITY IN THE PERFORMANCE BUT NOW WE JUST HEARD the bad out of the performance.So who want to trust else other than our trusty authority.So in behalf of Malaysians lets change our mind towards a new paradigm in making Malaysia a ‘real’ developed country.
Malaysia’s politic is a legalized con-business venture or an institution where the cunning and the shrew make use of people’s trust to enrich themselves.
So, wake up my friend! There is no such a thing as “people first, politic second” in Malaysia’s politic. It is more like “politician first, politician’s immediate family second and politician’s relative third, and……people like you and me out of radar screen!” This slogan together with many others is designed as cream on the cake to hide what is actually lay beneath it.
It seems to me that Malaysia is sick and Malaysian is feeling insecure, so many ‘creative’ slogans are necessary to hold Malaysian together. It reminded me of communism countries – china & USSR especially- during the cold war where slogans about unity and stand together as a nation are so plentiful that they can even be found in the toilet! Politician will yak about it every where they go and the state owned media and radio stations will broadcast them every hours or so.
Is Malaysia turning into a communist state? i wonder….. !
You want the politician to perform! you must be kidding me! But one thing for sure they are a financial wizard,an excellent rakyat blood sucking Dracula. They will hypnotize you using what-you-like-to-hear slogan before sucking you dry!
While Malaysia is sleeping China march forward with huge stride.
While the politician in Malaysia plays politic, the politician in China work on people’s future.
While you and I are frustrated by the politician’s actions, the people in china is celebrating and thanking their politician for their far sightedness.
While Malaysia is still working on the one Malaysia issues after 50 years of independent, China has sent people to the outer space using their designed space vehicle.
So…. at this moment and every moment that passes,
While you and i are sleeping and day dreaming about a better future, the politicians are digging our graves and robbing our wealth……………..
Watch out!!!…. for the politician are now aiming at your low-interest-bearing fixed deposits by issuing all kind of financial notes to ??????!!!! you know what!
hitherto, the PKFZ affair has now turned into a soap opera of :
i am more innocent than you!
the kettle calls the pot black!
i am a hero and you are the enemy of the state!
court drama!
Political Crime Scene investigation commonly called C.S.I!
Accountant versus Quantity Surveyors!
Desperate politicians!
how to sue those who defame you!
how to work yourself out of a corruption charges!
how to handle press media!
how to handle transparent agency and corruption watch dogs!
But….. and i wonder…..
where is the truth!
Nobody seems to know!
but one thing for sure, there is no corruption in this case, there is only alleged over certification and payment!
unfortunately, it is exactly what i predicted!!!!
human being will be extinct if no one produce in a hundred or so years!
corruption will be extinct if the pursue for the culprit is relentless and supported by political will all the way from PM to the government servants including the police.
if people perceive the government as corrupt, whatever the government seek to do… even if they benefit the people eventually …..will be viewed as a mean to enrich themselves. just like…. if your best friend betray you, whatever endeavors or subsequent remedial he attempt to make to win back you trust will be futile.
Hitherto, the BN’s government has lost the people’s trust and the opposition has yet to gain people’s complete trust. so….. in a way… Malaysia is in a cross road;…. whereas… Malaysian is in a dilemma as to who to choose…………………………………..
in a nut shell therefore…. Malaysia is not going anyway until ………corruption is completely stamped out!
Malaysia will go somewhere…. but don’t know where….. if opposition take over the country……..unless the first step… if they ever take over……..is to stamp out corruption follow only then by catching the culprit ……. it would be grave mistake if the first thing is to go for is religion reform or political reform or education reform or any other reform that are second to corruption….. USSR get split into small pieces because they go for political reform instead of financial reform… whereas China becomes a financial power house and super power because they opt for financial before political reform.
why…… you may ask…. it is simply because if you are bleeding… the first thing to do is not thinking about religion… or stock market… or to further your education….. it should simply to stop the bleeding. right now… Malaysia is bleeding to death financially due mainly to corruption……. the government is only doing half using rakyat’s duit… half is finding it way to the politician and businessman’s pocket…..
it is disappointing that the present government lack the political will to stamp out corruption…..there is even signs that the corruption is worst than before……..an indication that the politician and those businessman who depend on BN’s political connection to secure projects….. on fearing BN may loss the next general election are shipping out all the goodies & treasures from the sunken ship…..and leave behind…. shits and liabilities…. for the next captain of the ship to enjoy…….
the opposition must be vigilant on this possibility; and, there is no point taken over a sinking ship….. just like president obama taking over bush junior’s sunken ship…..
so… if there are 100 PKFZ scandals……. there is no point taking over the administration or the government!!!!!!!!!!! for there is no more money left to plan for Malaysia’s future………..
so……if the government keep issuing secure bond and financial notes to finance the mega project……… there is no point taking over the Government since the overall revenues collected from taxes are only sufficient to service the loan repayment… unless you create a Mega ‘Ponzi’ scheme to cheat rakyat……
so…… is opposition party aware of this? i wonder…….
So…. after a long deliberation……….. reluctantly…. I presumed…. they decided to freeze the…… wing of KDSB… and…. a small portion of the ‘alleged’ ill-gotten proceeds …. and…. a small plot of land!!!
The government…. however….. still allows them to travel in style in their Mercedes and Limousines…………and let them keep their private cash……..
One wonder…. however… How much else is hidden somewhere on earth ….or… may I say…. The moon!
So…..now….it appears ….the government has decided to……….. aim for………..asking the ‘alleged culprit’s company… unfortunately, not the politicians that are alleged to have been involved in the scandal…. to regurgitate … some of the …..alleged over-certified payment…..and….. not pressing for ….corruption charges….. just to satisfy some of the MCA members before their AGM that their chief is a “hero’….and……to convince some naïve general public……..as to the government’s political will to clean the country of corruption!
One thing you have to know is……… the company appears to be guilty of the alleged wrong-doing…. Not individual…………..in another word…. The minority shareholders of KDSB are as guilty as the majority shareholders as to the alleged wrong doing albeit they may eventually be the victim of the unfortunate circumstances…………..
So…. if you hold KDSB’s shares…..and if the allegation subsequently proved to have footing….. may I remind you that you are as guilty as the CEO…. as you have condoned his action……..!
My prediction is… the government…..next step is to freeze the consultant’s assets to ensure that they have the reserve to pay back some of the professional fees that have been over-certified…….and … after that……….. nothing will happen………. and the case goes cold….. as opposition take over the government………………and… rakyat continue to suffer from the aftermath……the day after the scandal……….. the rakyat is still the biggest loser…….
So… scandal makes good news……..unfortunately……in any scandal the main actors get all the goodies….. and the audience suffers……… as they have to pay for the tickets… to watch ….. to read…. and to suffer in silence ……
So… the PKFZ’s report is out……… some of the culprits had been identified….but…. most unfortunately…. There is no indication that the rakyat will get back their money and have their on-going liability relating to the scandal erased………… yes…. these culprits may end up in jail… but what is the point………rakyat want the money back….
If you caught a thief, you would probably prefer to get you money and things back apart from wanting him to be put in jail……that ‘s a reasonable request…..is it not!!!!
It is unfortunate that as a matter of fact you need to catch a thief red-handed before you can call him a thief. If the present government has no intend to catch the thief, it would be difficult for the general public including opposition party to do so. What they can only do is to make so noises and expose some of the wrong doing based on obvious violation of standard procedures. But the Government machinery is a complex web of bureaucracy, to get into the core of the problems would not be an easy task…… however, if culprits who benefit little from the deal are charged and put into jail, the truth has a better chance to be revealed……
The powerful and rich ex-politicians and government’s servants have no fear knowing the government and some powerful businessman are behind them… and…. more importantly they have plenty of money to fight till the end……knowing that the final outcome ……would be… they are found innocent ….and….. the Government admit that there is loophole in the standard procedures and …….the story end here…….as the Government will only act to the extent that their self-serving interests are not affected by the exposition.