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On Treasury orders, PKA pays RM360mil to Kuala Dimensi PDF Print
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Tuesday, 07 July 2009 05:06

By Wong Choon Mei, Suara Keadilan

Reneging on its promise, the government-run Port Klang Authority has paid RM360 million or more than half the RM660 million owed to Kuala Dimensi Sdn Bhd, the controversial turnkey contractor pinpointed for irregularity in an audit report into the Port Klang Free Zone debacle.

The shock U-turn has re-ignited a public uproar, especially coming hot on the heels of Prime Minister Najib Razak’s refusal to help villagers in Penang’s Kampung Buah Pala repurchase land that was sold by his Umno-BN government at way-below-market-price to a high-end condominium developer without consulting them.

“If the federal government can sanction this huge payment which reeks of corruption, it should also be responsible enough to fund the cost of re-acquisition in Kampung Buah Pala which is a pittance by comparison,” said a political analyst.

In a statement issued on Monday, PKA chairman Lee Hwa Beng said he was merely carrying out instructions given by the Treasury, which comes under Najib, who is also Finance Minister.

“PKA has also received instructions from the Treasury that the board should be mindful of the implications that might affect the confidence of investors, local or foreign, in the Malaysian private debt securities market,” said Lee.

“It also spelt out the consequences of non-payment and the possibility of the trustees acting upon the directions of the bondholders and Commercial Paper/MediumTerm Note holders to enforce the security charge.

“The PKA board has, after taking into consideration the appeal from the trustees and the stand of the Finance Ministry, decided to release the repayment amounts due.”

The real puppet-masters behind PKFZ

Amid relentless pressure from the Pakatan Rakyat, which has been calling on Transport Minister Ong Tee Keat to account for all dubious aspects in the project, the PKA had on June 30 finally agreed to withhold payment until a special task force completed its review and made due recommendations as to how to resolve the problems.

The full amount RM660 million was to have been paid to four companies created by Kuala Dimensi – Special Port Vehicle Bhd, Transhipment Megahub Bhd, Valid Ventures Bhd and Free Zone Capital Bhd – in four installments throughout June and July.

After Monday’s payment, the balance RM300 million will have to be paid by July 31.

Launched in 2002, the PKFZ white elephant was modelled after the Jebel Ali free trade zone in the United Arab Emirates.

From an initial budget of RM1.9 billion, massive cost overruns have pushed the outlay to RM7.5 billion currently and could hit RM12.5 billion if debt taken for the project is not restructured.

PKFZ is also the Malaysian government’s biggest investment ever in the port industry. The scandal has implicated a string of Barisan Nasional politicians, including former MCA president Ling Liong Sik and former transport minister Chan Kong Choy.

Additionally, the chairman of the BN Backbenchers Club Tiong King Sing is the majority shareholder of turnkey contractor Kuala Dimensi.

However, political analysts believe the real puppet-masters behind the PKFZ debacle were from the Umno top echelon on the grounds that the scale of corruption was too massive to have been perpetrated without their knowledge and green light.

An audit report prepared by PricewaterhouseCoopers has exposed land purchases at a ’special prices’ that were way above market value, adding that Kuala Dimensi may have also overcharged interest between RM51 million to RM309 million.

Comments (9)Add Comment
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written by educationist, July 07, 2009 05:23:54
The legal experts should enlighten us as to what grave consequences there are if PKA does not pay Kuala Dimensi.
It's no major problem for PKA, it's not the directors money, they are just disbursing the rakyat's money.
Those UMNOputras are only too happy to let LGE handle the hot potato that's Kg Buah Pala!
Yes, 10% of that amount for the state governmentto buy back the land will defuse the controversy.
But of course, they won't do so!
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written by NSTPravda, July 07, 2009 05:52:06
“If the federal government can sanction this huge payment which reeks of corruption,....

then it can get away with murder, calumny, judge fixing, etc.
Rasuah sayang eh!


smilies/smiley.gif smilies/wink.gif smilies/cheesy.gif smilies/grin.gif smilies/tongue.gif smilies/cool.gif
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written by freerpk, July 07, 2009 08:05:57
See, See, See....and Tun Mahthir wants to know where all the Petronas money goes. No need public enquiry lah, have to even spend more public money for enquiry and after that what do we get. What we get is more money down the drain after the enquiry & none wiser !!!
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written by Ken Liew, July 07, 2009 08:22:12
Look at all the TAX money... how much school, hospital, even public transport can be made better.

But, Government waist these money on a pieces of shit, build a Hotel, which is not important to the people. If u want to learn management, go back to school. no need to waist this much money.... If u want to learn import and export... no need to build a free port to learn...
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written by budaktapah, July 07, 2009 09:39:45
huahahaha....
A free flow money grabbing event.
Participants are only by invitation.
Money on offer ranging from RM0.05 to RM12,000,000,000.00
Advised to bring ur own shovel and trolley
Whoever grabbed the most money will be aappointed as a Minister.
So please be early.
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written by Kang Mas, July 07, 2009 09:40:02
The raayat ought to be suspicious that the latest disbursement of RM360 million was PKFZ perpetrators' maneuver to get their share of the multi-billion scandal, while they still could, before being stopped should PR oust Ameno/BN in the 13th election.

Lawan tetap lawan.
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written by sydput, July 07, 2009 10:02:35
brilliant.
kuala Dimensi, after signing the S&P and other contracts with PKA, went and borrowed several billions from our money markets, by selling bonds whereby payments are guranteed by the govenrment.
That means, kuala dimensi got their money years ago, and the payments are actually to lenders such as financial institution and investors.

This is the same trick IPP's in the country did. They use guranteed cash flow projection from selling their power to tnb, borrow money by issuing bonds to investors, and use the money to buy up utility companies worldwide. That is why the govenrment cannot back down on IPP contracts. It will affect the local financial markets and our country's credit rating.

By doing this way, the scammers are protected from any follow-up action, or change in government policy.
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written by Sinewy, July 07, 2009 14:11:32
can all the stupid ministers, government administrators and ruling politicians tell me why the hell PKA paid Kuala Dimensi RM 25 per sq. ft. for the land when they could accept an offer from the neighbouring land at only RM 15 per sq. ft.? I was with developer previously with development at Pulau Indah and the price of RM 15 per sq. ft. definitely is the right price...
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written by Beezee_Beezee, July 08, 2009 08:42:31
With all these informations on graft by most of the BN MPs or Ministers, the PR MPs should continue to push for Vote of no confidence to the whole BN cabinate. What's the point even with all these evidences the MACC and what not still cannot produce result thoroughly. We the rakyat needs to know if the government needs our loyalty. We should also insist these to be published in the MSM in the manner that it was discovered and discussed and progress action.
Hopefully most Malaysian will look at all these and make your own judjment for a better sellection of MPs in the near future.
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