Sunday, June 07, 2009

Forum: RM12.5 billion PKFZ Scandal - Will Heads Roll?

The cost has blasted out of proportions. DAP Parliamentary Leader, Lim Kit Siang exclaims that it is an “astronomical rip-off, a can of worms that has turned out to be a pit of crocodiles and alligators.”

In 2007, the Ministry of Finance extended a RM4.6 billion soft loan at 4% interest rate to PKA to salvage the Port Klang Free Zone (PKFZ) project. Now, it appears that they will have to extend an additional RM3.56 billion loan to cover the cashflow deficit over the next 20 years! As projected by PriceWaterhouse Coopers (PwC), this restructured financing will cost an additional RM5 billion in interest costs over the next 42 years!

The question now is, will heads roll over Malaysia's record bailout scandal, especially with existing Barisan Nasional leaders implicated by the project? Should the government continue to support the project with up to RM8.56 billion in tax payers' monies or should it cut losses and make better use of the funds for the rakyat in other more productive means?

A public forum is being organised on the issue as follows:

Venue : KL Selangor Chinese Assembly Hall, Jalan Maharajalela, KL (MAP)
Date : 10 June 2009
Time : 8.00 pm

Panelist :

  • Tan Sri Dr Ramon Navaratnam - Transparency International Malaysia President, prominent Malaysian economist, former Transport Ministry Secretary-General
  • Captain Yusof Ahmad - former pilot superintendent of the Klang Port Authority and pioneer general manager of West Port
  • Teh Chi Chang - Economic Advisor to DAP Secretary-General Lim Guan Eng
  • Tony Pua - DAP Publicity Secretary, MP for PJ Utara
  • Lim Kit Siang - DAP Parliamentary Leader, MP for Ipoh Timur
All are welcome! Please invite friends.




Anonymous said...

PKFZ scandal is just one example of many others failed projects. The results is debt owed by government reach mountain high. I am sure there are many others such failed projects when government issue guaranteed letter for bond issued.
Look at grand transportation hub in Senai-Tanjung Pelepas, opposition should study and revisit into it. How many billions spend on it. Johorean must wake-up to failure mega BN's project. That mega transportation hub 'brainchild' of Tun Mamak is another disaster!
Now is the time opposition work hard to storm into BN stronghold in Johor.

Anonymous said...

Not good enough to have all DAP reps in.

Challenge the MCA to send rep.

Or may be they are too chicken off to come ?

Anonymous said...

PKFZ Bonds and their disbursement.

Dear Tony

I understood that Mof has instructed a consortium of four Quantity Surveyors (i.e. QS4) to be appointed to supervise the development of the Project. PcW report on page 45 listed QS4 as Perunding BE Sdn Bhd, Jurukur Bahan H & A, ASA-CM Jurukur Bahan Sdn Bhd and RK Partnership.

However, on point 4.11(vi),page 23, the report stated that no approval was sought by the Board when the PKA management appealed for Perunding BE Sdn Bhd to be appointed as the sole Quantity Surveyor for the project, despite MoF’s instruction to appoint a consortium of four QS.

On a Malaysiakini report here ( , it wrote
~Chan is also said to have pressed Finance Minister Abdullah Ahmad Badawi to appoint a certain Damansara-based consultant as PKFZ’s independent quantity surveyor (IQS) after the Finance Ministry had already rejected the appointment of the same consultant.
The consultant - which had previously been under the employ of Kuala Dimensi Sdn Bhd, the property developer and investment firm behind the sale and development of PKFZ - was eventually appointed as the IQS of PKFZ.~

Can you confirm the Project only has one QS i.e. Perunding BE Sdn Bhd?

Can we know who represent PKA management at the material point in time?

The role of the QS is important to certify the progress work completed by Kuala Dimemsi in order for withdrawals to be made from ‘Disbursement Account’ here (


Anonymous said...

We must focus on catching the big fish from KDSB and MCA veteran.

The ikan bilis let the "MACC" do it. They are best at catching bilis.

Anonymous said...

Dear Tony,

The ‘Letters of Support were not issued to Kuala Dimensi but to the rating agencies and trustees of the bonds. The first letter, signed by Ling Liong Sik, was issued to Malaysian International Merchant Bankers and Pacific Trustees Bhd.

The subsequent three letters, signed by Chan Kong Choy, were issued to Malaysian Rating Corporation Berhad and OSK Trustees Berhad for Kuala Dimensi to raised three more tranches of Bonds

On para 4.7, page 40 of PcW report, it state that

Subject to legal interpretation, these letters of support could be construed as guarantees given that MOT has stated that it will ensure that PKA will be able to meet all its obligations on a timely basis.

If this is the case, MOT has breached Treasury regulations which require such letters be approved by MOF .

Para 4.8 : Because of the potential significance of the letter of support , PKA would not have the option to default on its obligation to KDSB.

I love to see Ong Tee Kiat and Lee Hwa Beng argued that those letters do not amount to guarantee and PKA choose to default on its obligation to KDSB. PKA have only drawdown RM920 million from the MoF soft loan and this option can save the Rakyat a whole lot of money.


Anonymous said...

The heads MUST roll.

kopitelp16 said...

What head? These are cowards that are like tortoises if you know what I mean.....