and
to All Malaysians, A Happy and Safe New Year 2010
PKFZ’s 20 Major Problems
PricewaterhouseCoopers has basically outlined 20 issues with PKFZ:Issue-1:
The proposal to purchase the land was approved by the Cabinet but subsequent development proposals (2004 - 2006) which involved additional RM1.84 billion were not tabled to Cabinet for approval but were awarded to KDSB after recommendations from Minister of Transport to the Prime Minister.
Issue-2:
Even though PKA knew it was not able to meet the Cabinet’s condition on self-financing, it not only did not alert the Cabinet but miraculously had the gut to sign other development agreements and thereafter the cost balloon indefinitely. Without support from somebody as powerful as a minister, you won't dare to do so, do you?
Issue-3:
PKA board did not exercise adequate governance over the project implementation, another nice way to say the board did not know or simply clueless on was happening on the ground. Lots of things happened without the board’s approval or maybe the board didn’t care at all (close one eye?).
Issue-4:
Advice of the Attornet General was not sought to safeguard the interests of PKA and the Government (I think it should be the taxpayers’ interests instead). Worst still, compliance such as defect liability was deliberately taken out from the agreements entered with KDSB.
Issue-5:
Involvement of politicians and individuals who obviously created conflicts of interest. Chor Chee Heung, for example, was non-executive Deputy Chairman of Wijaya Baru Global Berhad (Apr’2004 – Jul’2007) and at the same time acted as Chairman of PKA (Apr’2007 – Mar’2008). In fact WBGB, KDSB, WBHSB and WBSB are all related under the umbrella of a common shareholder – Tiong King Sing.
PKFZ Scandal CompaniesStrangely enough, Perunding BE Sdn Bhd was appointed as PKA’s quantity surveyors when it had also acted as the quantity surveyor for KDSB as well. PKA and KDSB also shared the same legal adviser – Rashid Asari & Co.
Issue-6:
Interest on the MOF soft loan will increase the project cost from RM4.947 billion to RM7.453 billion and it seemed like PKA would be almost bankrupt thereafter unless the MOF soft loan is restructured otherwise the project expenditure will balloon to RM12.453 billion. MOF soft loan of 4% per-annum over a period of 20-year will slowly but surely kill PKA of which was already being squeeze by KDSB.
Issue-7:
PKA and Ministry of Transport somehow chose not to comply with MOF’s recommendation to issue government-guaranteed bonds to reduce funding cost. Obviously leakages happened when the illiterate PKA was willing to pay 7.5% per-annum charged by KDSB on deferred payments for the land purchase compared to government-guaranteed bonds coupon rates of 3.80% to 4.27%.
Issue-8:
The land was purchased at value above market value. Apparently KDSB managed to convince (or rather con?) PKA that the land was worth RM25 psf because it has “special value” as if there were huge deposit of gold or oil hidden underground. Earlier JPPH valued the land at RM17 psf in Nov 1998 and RM18 psf in May 2000.
Issue-9:
KDSB may have taken advantage of PKA, which didn’t really care about the project, by overcharged the latter for interest by between RM51 million to RM309 million in regards to the land purchase. The interest has been calculated using 6-monthly compounded basis instead of non-compounded yearly basis.
Issue-10:
DA3, which did not contain detailed specifications and scope of work, was not a “fixed sum” contract. As a result the original estimate of RM1 billion surprisingly ballooned by 21% to RM1.216 billion. KDSB later claimed additional RM121.592 million as professional fees being 10% of the final amount of RM1.216 billion – was this figure (10%) plucked from the sky since it was not mentioned in the DA3 and PKA didn’t even question it? Thus the final development cost increased by 33% from the original estimated amount of RM1 billion to RM1.337 billion. Now, who says making money from the Malaysian Government is difficult?
Issue-11:
PKA again showed its “generousity” when it allowed additional claim of RM95.256 million for general preliminaries although this cost was not specified in the DA. This was not due to stupidity on PKA but a very obvious case of leakages in broad daylight.
Issue-12:
Although KDSB did not deliver three infrastructure components (monsoon drain system, water supply system and two bridges) as specified in the land purchase agreement, the final account did not include any deduction for value of work not done.
Issue-13:
KDSB was awarded the RM1 billion development contract nine months before a project masterplan was finalized. Obviously someone very powerful whose status is nothing less than a minister had a hand on such decision. Your guess is as good as mine.
Issue-14:
PKA may not have received value for money because it depends solely on KDSB as the turnkey developer raising the question what role is PKA playing in this project.
Issue-15:
There was almost no project management and control over the project although this is a multi-billion project. It seemed the main objective was to suck up as much money as possible from the project without concern for the project deliverables.
Issue-16:
Project status as at 31 Dec 2008 – except for LIU with CF, defect liability period has expired and certain defects remain to be rectified.
Issue-17:
PKA has projected that it will be in cumulative cash deficit position in 2012 and will not be able to repay MOF soft loan installments thereafter. Potentially the PKFZ total project cost could skyrocket to more than RM12 billion.
Issue-18:
Ministry of Transport has breached Treasury regulations because it has issued four letters of support to PKA which could be construed as a guarantee that PKA would meet its obligations on a full and timely basis. Ministry of Transport needs Ministry of Finance’s approval before issue such letters.
Issue-19:
To date, PKFZ only managed to attract occupancy of only 14% which is insufficient in generating revenue to cover its operating expenses, let alone in servicing the interest costs.
Issue-20:
PKFZSB is as good as bankrupt because it has incurred losses since its incorporation and has negative shareholder’s funds as at 30 Sept 2008.
"I don't know how else to call them, sometimes we need to call a spade, a spade.According to him, these individuals do as they please without proper regard for the law of the land and the percepts laid down in the federal constitution.
What we have is a state of lawlessness, it's like the law of the jungle."
So it comes as no surprise that four people were found on Thursday in the unlawful custody of a police special investigation unit in Karachi’s Saddar area.
But here’s the shocker.
The raid on the Saddar SIU was conducted by a head bailiff armed with court orders for the recovery of the missing persons. Yet the police personnel there refused to hand over the detainees — who had not been officially charged with any crime — insisting that the ‘suspects’ would be produced in court the next day.
Claims by the victims’ relatives that the police are trying to extort money cannot be verified at this stage but that is immaterial in any case. The fact of the matter is that the SIU brazenly disobeyed a court order and the bailiff was left with no option but to leave without the detainees.
Clearly there are many among our police force who consider themselves to be above the law, come what may.
Ask almost any poor or middle-class person if they see the police as protectors and the answer will be in the negative. Instead, the common complaint is that the police’s primary focus is on collecting bribes for minor offences and even framing innocent people in order to extort ransom money.
It is also no secret that anyone with a few thousand rupees in his pocket can convince police officers to pick up a person who may be guilty of nothing more than real or perceived insult.
Personal scores are settled every day in this country with the police acting as middlemen with sticky fingers.
A police station is the first port of call for anyone seeking justice.
But such is the reputation of the force that law-abiding individuals without sufficient clout often suffer in silence instead of reporting crimes against their person or property. Will this sorry state of affairs ever change?
‘It is not merely of some importance but is of fundamental importance that justice should not only be done but should manifestly and undoubtedly be seen to be done.’Equally relevant is what an American supreme court judge had to say:
‘We are final not because we are right. We are right because we are final.’Thus, in a manner of speaking, the judges are on trial in their own court.
The Islamic warriors who blunted and frustrated the armies of the ‘Evil Empire’ are now the ‘evil doers’. The other great enemies of the ‘Evil Empire’, namely the United States and its allies, once the benefactors of today’s terrorists have replaced the Soviets as the occupying force.
As guns and drugs boom, the writ of what is generously called the Afghan government is practically non-existent outside Kabul. Warlords, mafias and insurgents control 80 per cent of the territory and feed off the presence of the occupation forces. The reality is that a failing occupation is trying to prop up a failed state.
The Obama administration’s new surge-and-exit strategy reflects the exasperation of the western alliance as it struggles to balance the politically feasible with the militarily necessary. At least as far the exit part of the strategy is concerned the US and its allies are condemned to succeed. When it comes to leaving behind a stable, legitimate and semi-functional Afghan state, the alliance is almost certain to fail.
The new strategy is in part driven by domestic compulsions as Obama struggles to rein in US militarism and adjust overseas commitments to political will and economic capacity. The surge is designed to show that Obama is tough and determined. The exit part is meant to placate a war weary public in time for the 2012 elections. Of course, at a declaratory level senior members of the administration, including the secretary of defence Robert Gates, are putting a brave face on the situation and assuring their allies and Karzai that the United States is in it to win.
These assurances are hollow. The fact is that the United States is leaving Afghanistan. Starting in July 2011 the drawdown will begin. For Karzai and his regime the final countdown has now begun and the American exit amounts to a death sentence. All the Taliban have to do is wait another 18 months, lie low and melt into the local population while stockpiling arms, ammunition and funds siphoned off from drugs and Nato contractors in preparation for the re-conquest of their country.
There is no evidence that the Karzai regime, which is now handicapped by a newfound illegitimacy following the fraudulent August 20 elections in addition to its longstanding incompetence, has the ability to rise to the occasion or the will to at least try and set things in order.
If anything, the Karzai regime’s position is analogous to that of the South Vietnamese regime of President Thieu in 1972. Afghanistan’s narco-warlord elite now has an even greater incentive to loot as much as they can before the protective shield of the American and allied militaries evaporates and the Taliban onslaught begins again. Depending on the amount of damage the United States can inflict over the next few months a decent interval between imperial withdrawal and neo-colonial collapse may yet be secured. It is unlikely though that the regime left behind will be able to profit sufficiently from a prospective breather.
At one level, Musharraf’s strategy of hedging Pakistan’s bets in Afghanistan seems to have been based on a fairly realistic appraisal of what was politically and militarily possible for the western alliance.
For Pakistan there can be no exit strategy from the Afghan quagmire. The double policy to the extent it could be sustained meant that no matter who won in Afghanistan Pakistan could claim to have helped the winning side. Now that the Americans have served notice that they will start vacating in 18 months Pakistan has every incentive to accelerate its campaign against those militants working against itself while leaving the Afghan Taliban alone.
There are a number of post-American scenarios that Pakistan is now compelled to contemplate.
Of course, all five of these scenarios are at this stage mere speculation. They are not necessarily mutually exclusive and a lot can happen in three years though it seems unlikely that there are any good options left to exercise.
One can only hope that those in authority are seriously thinking about the post-American post-occupation regional configuration with particular reference to Afghanistan with the aim of at least trying to arrive at a workable and inclusive solution in accordance with enlightened self-interest.
Or, Pakistan and other regional powers can wait until the Americans leave and once again plunge into the strategic depths of Afghanistan.
In either case a war that began in 1979 and is now in its thirtieth year may well still be raging in 2039.
- Ilhan Niaz
The embattled Malaysian Anti-Corruption Commission (MACC) chief Ahmad Said Hamdan has opted for early retirement and he is to be replaced by his deputy, Abu Kassim Mohamed. It is learnt that Ahmad Said, 57, would begin his leave starting Dec 14.Ahmad Said has been under tremendous pressure from the opposition to quit after Malaysia plummeted in the Transparency International ranking by nine places from last year's 47th to 56th in its global corruption perception index. Said Hamdan has opted for early retirement and he is to be replaced by his deputy, Abu Kassim Mohamed. Read here for more
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"...Let us remember that nations only exist as long as we BELIEVE in them.
Malaysia is most in danger not when it is under attack, but rather when we stop believing in a Malaysian project.
We - citizens - are the building blocks of the nation and we constitute Malaysia and Malaysian identity. We also hold the key to Malaysia’s future. To determine how and where this country heads in the future is therefore the collective responsibility of all Malaysians and those who recognise themselves as such; and our agency and responsibility implicates all of us in the grand project that is called nation-building.
How then are we to salvage the Malaysian project? Faith is required and we need to believe in the power of individual human agency and its transformative potential as a tool for politics and nation-building.
Change can only happen if and when we believe in it, and that it is worthwhile and necessary. At a time when Malaysian politics is characterised by the worst and narrowest forms of provincial sectarian and communitarian thinking; with groups calling for narrow ethnic-linguistic ghettos and enclaves; when communitarian distrust leads to repugnant expressions of ethnic and racial supremacy and bigotry; this is when rational human agency is needed more than ever.
Now more than ever we need to believe that Malaysia and the Malaysian project can be rescued and is worth rescuing. Failure to do so leads us down the path of defeatism and fatalism.
That would be the cultural suicide of a nation, and the biggest betrayal of Malaysia yet.
- Dr. Farish Noor
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"....Twenty years ago today, Malaysia made a pact to put an end to an armed conflict that was costing incalculable damage to lives and the country’s economy.
Testimonies from key players behind the peace treaties also revealed that it was the Malaysian government that made the overt gesture to extend the olive branch to the communists even though it knew it would face strong objections from the people, especially staffers from the security forces.
But today, the Federal government has gone back on its word in its repeated refusal to allow Sitiawan-born Chin Peng to return home and, in the process, may have caused irrevocable damage to Malaysia’s reputation as a democratic country.
The three-way treaty, also known as the Hatyai Peace Accord, was met with international support then.
In a nutshell, the two countries agreed to stop hunting down CPM members, who had been waging a jungle war against the governments for over 40 years.
The guerrillas were allowed to settle down and live peacefully in a country of their choice and their slates wiped cleaned.In return, they must dispose off their weapons and swear to be loyal to King and country and follow the rule of law.
The present administration led by Prime Minister Datuk Seri Najib Razak appears to have been swayed by sentiment to keep the former Public Enemy No. 1 from stepping foot on Malaysian soil.
His deputy, Tan Sri Muhyiddin Yassin, has repeatedly echoed the misconceived view that “forgiveness” is a prerequisite to allowing the 85-year-old communist leader back. It is not.
It is also not known if the present leaders have read the two documents for themselves.
The government must keep in mind that it is bound by a contract, even if it was signed ages ago.
If it does not keep its part of the deal, it can only lead to one conclusion, which will have very far-reaching consequences on all future agreements..."
Biro Tata Negara (National Civics Bureau, or simply BTN) is an agency of the Malaysian government in the Prime Minister's Department. It was established in 1974 as the Youth Research Unit (Unit Penyelidikan Belia) under the Youth Ministry, but was renamed and transferred in 1981.
BTN's stated objective is to nurture the spirit of patriotism and commitment to excellence among Malaysians, and train leaders and future leaders to support the nation's development efforts.
BTN's programmes are controversial, and many accuse them of promoting ketuanan Melayu and the governing Barisan Nasional.
On 25 November 2009, the Selangor state government issued a ban prohibiting state civil servants, employees of state subsidiaries, and students at state-owned institutions from attending BTN courses. Read here for more
“Kita sekarang ni di Balik Pulau. Kenapa saya lihat kawasan di Balik Pulau ni seakan tidak maju? Dan rata-rata penduduknya orang Melayu.Do you know what he answered?
Kenapa Umno biarkan Gerakan ‘tindas’ orang Melayu dan orang kampung di Balik Pulau dari segi pembangunan?”
“Kita sedang pantau mereka. Umno sedang pantau mereka…”What is that supposed to mean?
“C: Give the project to the government-friendly consortium although it has poor knowledge and expertise about the project.”It is because I know A and B had the keywords “Opposition” and “Foreign Company” respectively, and after all we only just had a so-called “healthy” one-way discussion with The Fascist so I urged the group to just pick C so that we could all go for an early lunch!
Azmil Tayeb:
Bravo Selangor government for taking this progressive step. BTN is simply an organ of hate and shouldn't even be allowed to exist in the first place. True inculcation of citizenship values doesn't come from forced indoctrination, much less one that is racist in nature.
KLeo:
I testify to BN's dirty indoctrination at BTN camps. Mine was in 2005 just after I left school. Words in the many 'ceramah' included 'Ketuanan Melayu' and 'pendatang'. I remember being so angry with the camp facilitators that I almost argued with one of them in one of the discussion groups.I don't know if this is true camp-wide, but I do know that my fellow course mates that went with me - both Malay and non-Malay - were equally disgusted with the camp officials.
P Dev Anand Pillai:
Syabas, Selangor government you have walked the talk. Keep up the good work and the people will be with you in the next general election. It is good to see that we have some brave Malay leaders who are bold enough to set the country on the path to greater unity as Malaysians first. Syabas again.
Lim Chong Leong:
The Pakatan Rakyat states should introduce anti-racism, equality and meritocracy programmes to build up our youngsters towards a global mentality to prepare them for a brighter, more competitive future. We urgently need to neutralise the negative impact of the BTN.