PTMP: Losses making fashion company in Penang Undersea Tunnel Project



Filepic: PenangPropertyTalk

Did the Penang Govt do a “bait and switch” on the Penang people?

That was the question posed by MCA deputy president Datuk Seri Dr Wee Ka Siong after it was revealed that a local fashion company has been identified as the shareholder of a special purpose vehicle (SPV) for the RM6.3bil Penang undersea tunnel project.

He questioned how the DAP-led Penang state government can claim that it is normal for a loss-making local fashion company to be suddenly involved in building a complicated multi-billion undersea tunnel as its first project as part of normal buisness diversification process.

Shareholdings disclosure of the company on Bursa Malaysia. Pic: mca.org.my
Shareholdings disclosure of the company on Bursa Malaysia. Pic: mca.org.my

Shareholdings disclosure of the company on Bursa Malaysia. Pic: mca.org.myShareholdings disclosure of the company on Bursa Malaysia. Pic: mca.org.my

“Taking aside the fact that the fashion company has reported losses in each of the past 3 financial quarters and their last financial statement submitted to Bursa Malaysia on 29 Nov 2017 showed that the company had cash balances of RM1,7 million and short-term loans of RM16.5 million, I believe the Penang Government is completely missing the point.

“The main point is that the Penang Govt had reassured and promised to the people of Penang in March 2013 when the project was awarded that the Special Purpose Vehicle (SPV) company had strong financial backing of RM4.6 billion and had deep experience in construction,” Wee highlighted, in a statement posted on MCA’s website.

He points out that five years later there was nothing to show except for the millions spent on uncompleted feasibility studies.

“Did the DAP government lie to the public and made a bait and switch?” he asked.

Meanwhile, political analyst Datuk Eric See-Toh has revealed that the project never awarded on open tender.

“This is an interesting development as the project was never awarded based on Open Tender as DAP frequently claims.

“It was done via a Request for Proposal (RFP) exercise where a company was then selected for further negotiations before agreement signing,” he noted in a recent Facebook posting.

“The Penang Government should release the minutes of why the winner was selected and why others were rejected,” he urged the DAP-led Penang government to give a proper explanation over how this could have happened.

This is important, he stressed as the result has clearly led to “such lop-sided terms that is in favour of the contractor and at the expense of the people of Penang” which is the reason for the Malaysian Anti-Corruption Commission (MACC) investigation now.

“Allowing many to participate in an open RFP is not the most important question but how and on what basis the final party was selected and the negotiations after that,” he added.

“Taking aside the fact that the fashion company has reported losses in each of the past 3 financial quarters and their last financial statement submitted to Bursa Malaysia on 29 Nov 2017 showed that the company had cash balances of RM1,7 million and short-term loans of RM16.5 million, I believe the Penang Government is completely missing the point.

“The main point is that the Penang Govt had reassured and promised to the people of Penang in March 2013 when the project was awarded that the Special Purpose Vehicle (SPV) company had strong financial backing of RM4.6 billion and had deep experience in construction,” Wee highlighted, in a statement posted on MCA’s website.

He points out that five years later there was nothing to show except for the millions spent on uncompleted feasibility studies.

“Did the DAP government lie to the public and made a bait and switch?” he asked.

Meanwhile, political analyst Datuk Eric See-Toh has revealed that the project never awarded on open tender.

“This is an interesting development as the project was never awarded based on Open Tender as DAP frequently claims.

“It was done via a Request for Proposal (RFP) exercise where a company was then selected for further negotiations before agreement signing,” he noted in a recent Facebook posting.

“The Penang Government should release the minutes of why the winner was selected and why others were rejected,” he urged the DAP-led Penang government to give a proper explanation over how this could have happened.

This is important, he stressed as the result has clearly led to “such lop-sided terms that is in favour of the contractor and at the expense of the people of Penang” which is the reason for the Malaysian Anti-Corruption Commission (MACC) investigation now.

“Allowing many to participate in an open RFP is not the most important question but how and on what basis the final party was selected and the negotiations after that,” he added.

“According to a MACC source, the investigation was zeroing in on the tender process and appointment of the company to carry out the feasibility study for the (Penang Tunnel) project.” said a report today. This is an interesting development as the project was never awarded based on Open Tender as DAP frequently claims. It was done via a Request for Proposal (RFP) exercise where a companywas then selected for further negotiations before agreement signing.

The Penang Government should release the minutes of why the winner was
selected and why others were rejected as well as the minutes of the attendees and what was discussed during the negotiations with the winner prior to the final agreement that led to such lop-sided terms that is in favour of the contractor and at the expense of the people of Penang. Allowing many to participate in an open RFP is not the most important
question but how and on what basis the final party was selected and the negotiations after that.

Eric See-To. http://www.freemalaysiatoday.com/…/undersea-tunnel-probe-m…/

Here’s an explanation between RFP and Request for Tender/Quote and other methods:

http://thoughtbubble.com.au/…/whats-the-difference-between…/

Image may contain: text

 

Source: Malaysian Digest: http://www.malaysiandigest.com/
Related Links:

Politicians on MACC radar over tunnel payoffs – Nation

Video:  //players.brightcove.net/4405352761001/default_default/index.html?videoId=5714956846001

“There were politicians who received a few hundred thousand ringgit and those who took millions.

“Investigators are digging in on the extent of the misconduct and where the payments took place.

“It is believed that this is also related to the two land swaps
done as payment for the feasibility study,” said a source, who declined
to elaborate.

Feasibility study cost just doesn’t add up, says Wee – Nation

Undersea project: Fashion apparel just an investor not contractor, says Lim

More arrests likely in undersea tunnel probe – Nation

Related posts:

In troubled waters: An artist’s impression showing where the tunnel project will start on the island.   Land swap under…
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Pakatan taking a step backwards’


PETALING JAYA: Pakatan Harap­an’s choice of Tun Dr Mahathir Mohamad as its candidate for prime minister is a step backwards for the Opposition grouping, said Institute of Strategic and Inter­national Studies Malaysia Senior Fellow Sholto Byrnes.

In an opinion piece yesterday in The National, a newspaper published in Abu Dhabi, United Arab Emirates, Byrnes wrote that Pakatan’s choice of Dr Mahathir showed it did not have confidence in its own leaders.

He said it also reflected badly on Opposition supporters who were strongly against the Government, which Dr Mahathir led for 22 years.

“The notion that this represents change, let alone fresh blood, is laughable and reflects very poorly on the Opposition’s confidence not only in its younger cadres, but also in those who have always opposed the Barisan Nasional governing coalition,” said Byrnes.

He said many Opposition supporters and leaders were imprisoned by Dr Mahathir, who is currently Pakatan Harapan chairman, for no good reason other than that their vehement opposition inconvenienced him.

“They are entitled to feel bitter at having to kowtow to their former jailer,” he added.

Byrnes noted that Dr Mahathir, who is now 92, would become the world’s oldest leader if elected in the event that Pakatan Harapan wrests power from Barisan.

This, he said, would open Malay­sia to international ridicule.

“Any who doubt that should imagine the incredulous laughter if either George H.W. Bush, aged 93, or Valery Giscard d’Estaing, a sprightly 91, were to seek to return to the presidencies of the United States and France respectively,” he said.

Commenting on Dr Mahathir’s Dec 30 apology for his past mistakes when he was prime minister, Byrnes pointed out that the former leader said sorry for nothing specific.

Dr Mahathir later suggested that it was Malay custom to apologise for possible past mistakes.

“Whatever charges might be laid against him over possible wrongdoing during the course of his premiership – and Opposition activists have in the past called for him to be put on trial for them – he is essentially unrepentant,” Byrnes wrote.

He said Dr Mahathir would never have switched to the Opposition if Datuk Seri Najib Tun Razak had been prepared to act as Dr Mahathir’s tame supplicant and do everything his former boss wanted.

“For ever since he stood down from the premiership, Dr Mahathir has not been able to let go,” he said.

Recognising that it was Chinese faces who had the track record and visibility in the Opposition after Datuk Seri Anwar Ibrahim’s jailing, Byrnes said Pakatan was trying to hide them behind a facade of Malay politicians to win the crucial votes of the majority Malays.

“There are decent people in the Opposition, whom I have come to know personally. But this new top ticket drives a coach and horses through the Opposition’s old principles and thus through whatever moral authority it had,” he said.

Choosing a nonagenerian former PM to head Malaysia’s opposition is a regressive move

– REUTERS/Lai Seng Sin/File Photo

THE announcement last weekend that Malaysia’s opposition coalition, Pakatan Harapan (PH), had chosen Tun Dr Mahathir Mohamad as its candidate for prime minister made international headlines for two reasons. Firstly, Dr Mahathir has been the country’s head of government before, for a record-breaking 22 years from 1981 to 2003, during which (and afterwards) his governing style was described as “authoritarian”. With trademark sarcasm, the good doctor now one-ups that by conceding that in office he was nothing less than a “dictator”. He is not renowned as an advocate for reformist democracy, which is what PH claims to stand for.

Secondly, he is now 92, which would make him the world’s oldest leader if elected. Opposition columnists have ludicrously compared Malaysia, much praised by the World Bank, the IMF and other international bodies for its current government’s reforms, prudent economic stewardship and excellent growth, with Zimbabwe. In fact, it is the latter’s former president Robert Mugabe, a 93-year-old gerontocrat deposed ignominiously last year, who was so close to Dr Mahathir that the BBC’s John Simpson once paid him the backhanded compliment of calling him “a kind of successful, Asian Robert Mugabe.”

Malaysia’s opposition is now effectively helmed by two leaders from 20 years ago: Dr Mahathir and Datuk Seri Anwar Ibrahim, the deputy he sacked in 1998 and humiliated after the latter was charged and then jailed for sodomy and corruption. Anwar is currently in prison on a second sodomy charge. His wife, Datuk Seri Dr Wan Azizah Wan Ismail, is nominally PH’s candidate for deputy prime minister but should the opposition win, its plan is for Anwar to be given a royal pardon, enter parliament via a by-election and then take over from his former nemesis as prime minister.

The notion that this represents change, let alone fresh blood, is laughable and reflects very poorly on the opposition’s confidence not only in its younger cadres (and by younger, that means 50 and 60-year-olds) but also in those who have always opposed the Barisan Nasional (BN) governing coalition, which has never lost power since independence.

Theirs has not been an easy road. Many were imprisoned by Dr Mahathir for no good reason other than that their vehement opposition inconvenienced him. They are entitled to feel bitter at having to kowtow to their former jailer. And while Dr Mahathir might still be very sharp – his tongue has lost none of its spikiness – they cannot be oblivious to the fact that proposing a man who could be 93 by the time he became prime minister again opens the country to international ridicule. (Any who doubt that should imagine the incredulous laughter if either George HW Bush, currently aged 93, or Valery Giscard d’Estaing, a sprightly 91, were to seek to return to the presidencies of the US and France, respectively.)

So why has Malaysia’s opposition proposed him as their leader? Ah, but Dr Mahathir has changed his tune, some will say and has even recently apologised. Firstly, he said sorry for nothing specific and secondly, he then suggested it was Malay custom to apologise for possible past mistakes. However, whatever charges might be laid against him over possible wrongdoing during the course of his premiership – and opposition activists have in the past called for him to be put on trial for them – he is essentially unrepentant.

The late Karpal Singh, the formidable Indian national chairman of the mainly Chinese Democratic Action Party (DAP), would never have stood for it. His daughter and others with a long record in the opposition cannot stomach Dr Mahathir at the top and have said so vocally, as have some significant members of Anwar’s People’s Justice Party (PKR).

No wonder, for this is no alliance of principle. It is one of convenience. And if the current prime minister, Datuk Seri Najib Tun Razak, had been prepared to act as Dr Mahathir’s tame supplicant and do everything his former boss wanted, this would never have happened. For ever since he stood down from the premiership, Dr Mahathir has not been able to let go. First he undermined his handpicked successor, Tun Abdullah Ahmad Badawi, and then Najib – not for any malfeasance on their parts but for the crimes of not taking his “advice” as orders and for not indulging his dynastic ambitions.

Paradoxically, Dr Mahathir’s appearance at the head of the opposition pact is actually a testament to how strong a position Najib has built over the last two and a half years. Recognising that it was Chinese faces who had the track record and the visibility in the opposition after Anwar’s jailing, PH is now trying to hide them behind a facade of Malay politicians to win the crucial votes of the majority Malays.

But their new alliance is incoherent, with politicians having entirely contradictory records on matters of civil liberties and free speech, for instance – and, worse, deceitful ones, claiming that the goods and services tax that the current government has introduced could be removed, with no real plans for how they would replace the vital revenue.

There are decent people in the opposition, whom I have come to know personally. But this new top ticket drives a coach-and-horses through the opposition’s old principles and thus through whatever moral authority they had.

Malaysia has a good government that has won accolades for its determined fight against violent extremism and its successful economic transformation programme. It deserves a better opposition. And there’s a certain 92-year-old who deserves the gratitude of his people for services past – but also a retirement he has put off for far too long.

Source: by Sholto Byrnes, The Star

> Sholto Byrnes is a senior fellow at the Institute of Strategic and International Studies Malaysia

PKR gives up 14 seats to Pribumi for GE14

PETALING JAYA: PKR has given up 14 constituencies it contested in the last general election to Parti Pribumi Bersatu Malaysia (Pribumi) for the upcoming 14th General Election (GE14).

Pakatan Harapan’s approved distribution of parliamentary seats for GE14 shows PKR giving up seats in Selangor, Negri Sembilan, Johor, Perak, Kelantan and Pahang to Pribumi.

Notably, it has surrendered the Pekan seat – currently held by Umno president and Prime Minister Datuk Seri Najib Tun Razak – to Pribumi.

Notably, PKR has given up its Lumut parliamentary seat, currently held by Mohamad Imran Abd Hamid, to Amanah.

Since the departure of PAS from the now-defunct Pakatan Rakyat coalition, many of that party’s previously-contested seats were distributed evenly among Pribumi and Amanah, a PAS breakaway party.

Interestingly, Pribumi is the Pakatan Harapan party contesting seven seats in Kelantan, against five by Amanah and two by PKR.

Pribumi will have a strong presence in the Umno stronghold of Johor, fielding candidates in 10 seats.

Four of those seats (Sri Gading, Pengerang, Pontian and Muar) were previously contested by PKR, while Tanjung Piai was previously contested by DAP.

Johor’s Ayer Hitam seat, which was previously under DAP’s quota, will be contested by Amanah.

Pribumi is set to contest eight seats in Perak, after PKR gave up four seats there – Tambun, Bagan Serai, Tapah and Pasir Salak.

PKR is also slated to contest the Sungei Siput seat now held by PSM’s Dr Michael Jeyakumar Devaraj. Dr Jeyakumar won the seat under the PKR banner in the last election.

Apart from Johor, Pribumi also has strong representation in Perak (eight seats), Kelantan (seven), Pahang (six) and Kedah (six).

It is believed that Pribumi is thought to have a better chance against Umno in those seats, compared to Amanah.

Some instances of give and take were seen in the planned parliamentary seat distribution.

Amanah in turn has given up the prized Titiwangsa seat to Pribumi, leaving it with no potential representation in Kuala Lumpur.

Related Link:

Dr Mahathir has hijacked Pakatan, says Liow

Dr Mahathir has hijacked Pakatan, says Liowicon video

Penang undersea tunnel project scrutinized by the Malaysian Anti Corruption Commission (MACC)


In troubled waters: An artist’s impression showing where the tunnel project will start on the island.

 

 

Land swap under MACC scrutiny

PETALING JAYA: The Malaysian-Anti Corruption Commission (MACC) probe into the controversial Penang undersea tunnel is focused on land swaps that were made for the feasibility and detailed design study which has yet to be completed.

Sources said investigators are scouring documents involving two plots of land – Lot 702 and Lot 713 in Bandar Tanjung Pinang – with a size of 1.48ha and 2.31ha respectively.

The value of Lot 702 is around RM135mil while Lot 713 is around RM160mil.

It is learnt that both parcels of land have since been mortgaged to banks to obtain financing. The state government has also authorised planning permission on both parcels of lands.

“The state government paid the consultant for the feasibility studies by means of two land swaps. The cost for the feasibility study is around RM305mil.

“It has become an issue on why the study cost was inflated so much when it should have been an estimated RM60mil,” sources said, adding that determining the inflation and the reason behind it were among the challenges faced by the investigating team.

The sources also said that the graft-busters have their sights targeted on “somebody” who has been enjoying kickbacks and entertainment from the deal.

The feasibility and detailed design study is for the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in Seberang Perai.

It is part of the RM6.3bil mega project comprising a 10.53km North Coastal Paired Road (NCPR) from Tanjung Bungah to Teluk Bahang, the 5.7km Air Itam–Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive–Tun Dr Lim Chong Eu Expressway bypass.

Yesterday, the investigating team also questioned four officers from several state government agencies on the land swaps.

Sources added that the anti-graft agency also raided a property agency office in Penang and carted various documents away. It is learnt the chief executive officer of the company was not around during the raid.

MACC deputy chief commissioner Datuk Seri Azam Baki said his investigating team has yet to call in any witnesses for the case as they are still conducting a thorough study on the seized documents.

He added that the officers would still be obtaining more documents from the companies involved and also from the state government.

 

Two bosses of construction firms held for six days as MACC investigates project

Datuks’ remanded in tunnel probe

Taken away: Officers escorting one of the men out of the courthouse in Putrajaya.

MACC digs deeper

A swap involving two parcels of land worth close to RM300mil is in the spotlight as the MACC intensifies investigations into claims of corruption in Penang’s undersea tunnel project and several accompanying highway projects. Two ‘Datuks’ have been remanded and several key officials in companies and agencies involved in the project have been questioned. But Chief Minister Lim Guan Eng says the project will go on.

GEORGE TOWN: Chief Minister Lim Guan Eng says the undersea tunnel project, now the subject of a corruption investigation, will proceed unless there is a court order to stop it.

He said he was baffled by yet another investigation into the project as the Malaysian Anti Corruption Commission (MACC) had been conducting an investigation into the RM6.3bil mega project comprising the tunnel and three other highways since 2016.

“What are they investigating now? Is it because of the looming general election?

“The project was awarded via an open tender overseen by international accounting firm KPMG.

“Still, I have instructed everyone involved to give their full cooperation to the MACC in its investigation as we have nothing to hide,” said Lim at a press conference at Komtar yesterday.

On Tuesday, graft-busters arrested two “Datuks” involved in the controversial Penang undersea tunnel project to help in investigations into claims of corruption.

The duo, who were picked up in Putrajaya and Penang, have since been remanded for six days to facilitate the probe.

The anti-graft agency raided the offices of four state government agencies – the Penang Public Works Department, Penang State Secretary, Penang Office of Lands and Mines and Penang Valuation and Property Services Department – and three property development and construction companies – Ewein Zenith Sdn Bhd, 555 Capital Sdn Bhd and Consortium Zenith Construction Sdn Bhd’s Penang office.

MACC officers also questioned several officers in charge of the respective agencies and companies. Sources familiar with the investigation said the probe into the undersea tunnel project was also zooming in on land swaps.

Ewein Zenith is a joint-venture vehicle of Ewein Land Sdn Bhd and Consortium Zenith BUCG Sdn Bhd.

The latter is a Malaysia-China joint venture that was awarded the RM6.3bil mega project to build the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in Seberang Prai, a 10.53km North Coastal Paired Road (NCPR) from Tanjung Bungah to Teluk Bahang, the 5.7km Air Itam–Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive–Tun Dr Lim Chong Eu Expressway bypass.

Consortium Zenith BUCG changed its name to Consortium Zenith Construction Sdn Bhd on Jan 18 last year after the withdrawal of Beijing Urban Construction Group (BUCG).

In a related development, Vertice Bhd (formerly known as Voir Holdings Bhd) said the current investigation by the MACC will not impact the progress of the undersea tunnel project.

It said the project was an integral component of the Penang Transport Master Plan and that the role of Consortium Zenith Construction as the main contractor would remain.

Consortium Zenith Construction is a 13.2% associate company of Vertice. PUTRAJAYA: Two high-ranking bosses of development and construction companies have been remanded for six days as graft investigators continue their probe of the Penang undersea tunnel project. The two “Datuks” were held here and in Penang before being brought to court.

A 59-year-old businessman was brought to a magistrate’s court here at 9.40am yesterday and remanded for six days until Monday to help with the Malaysian Anti-Corruption Commission’s (MACC) investigation.

Magistrate Fatina Amyra Abdul Jalil allowed MACC prosecutors’ remand application although the Datuk’s lawyer Hamidi Mohd Noh objected, arguing that there was no need for his client to be held.

“I told the court that my client has been cooperative with the MACC.

“I would also like to point out that my client is innocent and his remand is only to assist the investigation,” he told reporters after the proceedings.

The MACC had initially asked for the Datuk to be held for seven days but the magistrate only allowed six days.

He was arrested at the MACC headquarters at around 8.45pm on Tuesday after being called for his statement to be recorded.

In George Town, another Datuk was brought to court for a remand application at 11.40am.

He was handcuffed and wearing MACC’s orange lock-up T-shirt with black pants when he arrived at the courthouse escorted by MACC officers.

The 49-year-old appeared calm and smiled to reporters but did not say anything before he was led inside.

Deputy registrar Muhammad Azam Md Eusoff granted a six-day remand order and the businessman was escorted out of the courthouse about 30 minutes later.

The case is being investigated under Section 16(a)(B) of the MACC Act 2009 for bribery.

It is also believed that one of the Datuks remanded yesterday tested positive for drugs.

On Tuesday, MACC personnel raided the offices of four state government agencies – the Penang Public Works Department, Penang State Secretary, Penang Office of Lands and Mines and Penang Valuation and Property Services Department – and three property development and construction companies believed to be related to the case.

The project involves a plan to bore a 6.5km tunnel below the seabed to connect north Butterworth and the island.

The tunnel is to connect Bagan Ajam, a mature suburb of about 5km from the Butterworth ferry terminal, to the end of Gurney Drive near the Pangkor Road junction on the island.

Connected to the project are three paired roads to be built on the island as a traffic dispersal system to cope with the traffic that the tunnel would bring to Gurney Drive, which is already densely developed.

The three paired roads are from Teluk Bahang to Tanjung Bungah, from Pangkor Road to the Tun Dr Lim Chong Eu Expressway – part of this stretch will be underground – and from Air Itam to the expressway near the Penang bridge.

To finance the construction, projected to cost RM6.3bil, the state government is giving payment in kind of 44.5ha of state land to the contractor, Consortium Zenith Construction.

Chief Minister Lim Guan Eng told the state assembly in 2014 that the land was valued at RM1,300 per sq ft and the project, ending with the tunnel, is scheduled for completion in 2025.

It was reported last March that RM135mil worth of land had been given to the contractor as payment to fund the feasibility studies and detailed studies.

A public-listed company announced in January 2016 that it had secured an agreement to buy 20.2ha of the land from the contractor over 10 years at RM1,300 per sq ft.

It is believed that the MACC is looking into why the state government allowed the contractor to presell state land despite delays in the project construction.

More to be called up for questioning

GEORGE TOWN: Investigations into allegations of corruption in the proposed Penang Undersea Tunnel project are expected to deepen with more people likely to be called up for questioning.

A source in the Malaysian Anti-Corruption Commission (MACC) said the focus was on the feasibility and detailed design study, which had been paid for but not completed.

“We will call in more people involved in the project to assist in investigations into the study,” the source said.

He declined to comment on whether more arrests would follow after two “Datuks” were remanded for six days yesterday to help in the investigations.

The two were remanded in George Town and Putrajaya for investigations into the corruption allegations.

The MACC source declined to share details on evidence collected that led to the remand of the two Datuks yesterday but confirmed that it was about the delayed feasibility study and detailed designs.

The feasibility, detailed design studies and environmental impact assessment was reported to cost RM305mil with RM220mil already paid. Since 2015, NGOs, government agencies, political parties and state assemblymen had asked about the payment and studies, only to be met with replies they considered unsatisfactory.

Last July, the Works Ministry and Board of Engineers Malaysia (BEM) repeatedly asserted that Penang significantly overpaid, by four times, design fees involving three roads.

Barisan Nasional strategic communications director Datuk Seri Abdul Rahman Dahlan sought the professional opinion of BEM, and it was reported that BEM replied that the detailed design costs were four times higher than the maximum allowed under the gazetted scale of fees based on the total project cost.

Last August, the state government declared that the feasibility studies would be ready by September.

In October, however, Works Minister Datuk Seri Fadillah Yusof said his ministry “had not seen a single page” of it.

Source: By mazwin nik anis, royce tan, arnold loh, r. sekaran, simon khoo The Staronline

 

MACC to make more arrests – Penang undersea tunnel project

More arrests are likely in the investigations into claims of corruption in Penang’s RM6.3bil project involving an undersea tunnel and three highways after MACC officers raided 12 more places and took statements from a dozen witnesses. They are looking into an agreement on payments to the concessionaires but Penang Chief Minister Lim Guan Eng says there was no wrongdoing and that not a single sen has been paid for the undersea tunnel project.

PETALING JAYA: Investigators looking into the allegation of corruption in the Penang undersea tunnel project are said to be thoroughly looking through the papers related to the contract for the feasibility study for the undersea tunnel.

“The agreement looks suspicious and the feasibility study for the mega project does not exceed RM305mil as announced by the state government,” sources said.

“The state government might have made a payment which is way different than the real value of the study,” they said.

On Thursday, The Star reported that the graft-busters were zooming in on the land swaps of two plots of land in Bandar Tanjung Pinang.

The sources also say that the reclaimed land for the land swaps were of high value for development. It is believed that the state JKR has set the value for the study and that allegations of misappropriation were raised when the value that was paid far exceeded the initial value.

To finance the construction of the tunnel and three paired roads on the island, projected to cost RM6.3bil, the state government is giving payment in kind of 44.5ha of state land to the contractor, Consortium Zenith Construction.

Chief Minister Lim Guan Eng had told the state assembly in 2014 that the land was valued at RM1,300 per sq ft and the project, ending with the tunnel, is scheduled for completion in 2025.

It was reported last March that RM135mil worth of land had been given to the contractor as payment to fund the feasibility studies and detailed studies. However, the study has not been completed although the land has been handed over.

A public- listed company announced in January 2016 that it had secured an agreement to buy 20.2ha of the land from the contractor over 10 years at RM1,300 per sq ft.

It is believed that the MACC is looking into why the state government allowed the contractor to presell state land despite delays in the project construction and the study.

Source: The Star Malaysia reports by MAZWIN NIK ANIS and INTAN AMALINA MOHD ALI

Related stories:

MACC probe shifts to bidding process – Nation | The Star Online

MACC looking at how RM305mil was paid – Nation | The Star Online

MACC focussing on Penang tunnel project studies, sources say …

Lim: Not a single sen paid for Penang undersea tunnel project …

No money paid for project, says Lim – Nation

 12 spots raided in tunnel probe 

Guan Eng: Project will go on unless there’s a court order to stop

Vertice, Ewein shares down following Penang arrests – Business News

Ewein MD remanded by MACC – theSundaily

Related posts:

 

Penang Transport Master Plan (PTMP) – Tunnel project rocked, Directors arrested in graft probe


 

 

 

Stalled ambition: A view of the Gurney Drive seafront, which is meant to be connected to Bagan Ajam in Seberang Prai under the Penang undersea tunnel project.
The RM6.3bil undersea tunnel project in Penang is on rocky ground with the MACC going on a day-long swoop on companies and state government agencies involved. A high-ranking Datuk in one of the companies has been detained to help in investigations into allegations of corruption in the long-delayed mega project and feasibility studies.

PETALING JAYA: Graft-busters have arrested a Datuk holding a high post in a company involved in the controversial Penang undersea tunnel project to help investigations into corruption claims.

The arrest came after a day-long massive swoop on several offices in Penang, where the Malaysian Anti-Corruption Commission (MACC) seized documents related to the RM6.3bil mega project.

The anti-graft agency raided the offices of four state government agencies – the Penang Public Works Department, Penang State Secretary, Penang Office of Lands and Mines and Penang Valuation and Property Services Department – and three property development and construction companies – Ewein Zenith Sdn Bhd, 555 Capital Sdn Bhd and Consortium Zenith Construction Sdn Bhd’s Penang office.

MACC officers also questioned several officers in charge of the respective agencies and companies since the raids began yesterday morning.

Sources familiar with the investigation said the probe into the undersea tunnel project was also zooming in on land swaps.

Ewein Zenith is a joint-venture vehicle of Ewein Land Sdn Bhd and Consortium Zenith BUCG Sdn Bhd.

The latter is a Malaysia-China joint venture that was awarded the RM6.3bil mega project to build the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in Seberang Prai, a 10.53km North Coastal Paired Road (NCPR) from Tanjung Bungah to Teluk Bahang, the 5.7km Air Itam–Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive–Tun Dr Lim Chong Eu Expressway bypass.

Consortium Zenith BUCG changed its name to Consortium Zenith Construction Sdn Bhd on Jan 18 last year after the withdrawal of Beijing Urban Construction Group (BUCG).

It is believed that the MACC is looking into why the state government allowed the Penang Tunnel special purpose vehicle (SPV) company to pre-sell state land rights worth RM3bil despite a four-year delay in the construction of roads.

Investigators are also believed to be looking into the RM305mil feasibility and detailed design studies that have yet to be completed, even though a payment of RM220mil was made to the SPV.

On Oct 11 last year, the main contractor of the project announced that there was no urgency to finish the feasibility study for the undersea tunnel, as it was only set to begin in 2023.

The feasibility study of the tunnel started in February 2015 and as of October last year, it was said to be 92.9% complete.

Works Minister Datuk Seri Fadillah Yusof has said the delay in submitting the feasibility report to him was very unusual considering that the project was awarded in 2013.

On Friday, Parti Cinta Malaysia (PCM) vice-president Datuk Huan Cheng Guan lodged a report at the MACC headquarters in Putrajaya and handed over documents which he claimed contained new evidence of corruption in the project.

It was Huan’s third report about the matter. He first lodged a police report on July 17 last year, claiming that the project was awarded to an “undercapitalised” company.

He then lodged a report with the MACC on July 21, calling for a corruption probe.

In George Town, a source in the MACC confirmed that they had ­visited the offices of Ewein Zenith, Consor­tium Zenith Construction and 555 Capital, all of which are involved in the Penang undersea tunnel project.

“We went in the morning, shortly after their offices opened,” said the MACC officer.

However, none of the senior management staff were in and only the front office and sales staff were present to attend to them.

State Works Committee chairman Lim Hock Seng said he was not aware of the raids, while Consortium Zenith senior executive director Datuk Zarul Ahmad Mohd Zulkifli could not be reached for comment.

Meanwhile, state secretary Datuk Seri Farizan Darus said the National Economic Planning Unit on the 25th floor of Komtar was also raided, but declined to give details.

Huan thanked the commission for acting on his report.

“I believe the MACC will carry out its investigation professionally without any fear or favour,” he said.

The MACC is expected to hold a press conference today to explain the spate of raids and provide updates on the investigations.

By royce tan, tan sin chow, r. sekaran, cavina lim The Star

Forex losses by Bank Negara Malaysia, Facts were concealed; Mahathir, Anwar and Nor Mohamed implicated: RCI


Important report: RCI Secretary Datuk Dr Yusof
Ismail speaking to media after submitting a police report over Bank
Negara forex trade losses in Putrajaya.

THE Royal Commission of Inquiry into the foreign exchange losses suffered by Bank Negara Malaysia (BNM) back in 1990s has recommended that three people be probed over their involvement and liability.

They are former prime minister Tun Dr Mahathir Mohamad, his then finance minister Datuk Seri Anwar Ibrahim and ex-Bank Negara advisor Tan Sri Nor Mohamed Yakcop, whom the report also named as “principally liable for criminal breach of trust”.

The 524-page report also called out Tun Daim Zainuddin, who served as finance minister from July 14, 1984 to March 15, 1991, for having aided and abetted Nor Mohamed by leaving BNM “to its own devices”.

The commission found that the Cabinet in the 1990s was not given the full picture by Anwar on the forex losses, adding that he had “deliberately concealed facts and information and made misleading statements”.

“The Commission is of the opinion that there was deliberate concealment as BNM’s annual reports did not state the actual losses incurred from the forex dealings from 1992 to 1994.

“It is also of the opinion that the then prime minister (Dr Mahathir) had condoned the actions of the finance minister,” it said.

The RM31.5bil losses, it said, were hidden using “unconventional accounting treatments”, such as booking losses to reserves in the balance sheet and the absorption of the remaining losses by the transfer of shares from the Government to BNM as well as the creation of a “Deferred Expenditure” to be repaid in instalments over a decade.

“All the actions to conceal the losses were discussed and approved by the board of directors before the accounts were signed off by the Auditor-General.

“No further action was taken by the Finance Minister and Treasury secretary-general (as a board member) despite being informed by the Auditor-General on the losses and the unusual accounting treatments,” said the report.

Anwar, noted the Commission, had been informed about the actual forex losses suffered by BNM.

Dr Mahathir, it said, was informed by Anwar together with then Treasury deputy secretary-general Tan Sri Clifford Francis Herbert in late 1993 that BNM had suffered estimated losses of RM30bil on the forex dealings for 1992 and 1993.

However, in the extract of minutes from three Cabinet meetings on March 30, April 6 and 13 in 1994, Anwar had made “no mention of the actual losses of RM12.3bil for 1992 and RM15.3bil for 1993.”

Anwar had chaired the March 30 meeting as the deputy prime minister. The losses for 1993 were reported as RM5.7bil.

“The prime minister, who chaired the meeting on April 6, did not correct or offer more information when the forex losses for 1993 were recorded as only RM5.7bil,” it pointed out.

“The Commission is of the view that it is the finance minister’s responsibility to inform the Cabinet the significant financial affairs about BNM as the Cabinet has collective responsibility with the finance minister and the prime minister for the country’s affairs.”

Dr Mahathir, it said, claimed to have no knowledge of the real amount of losses, which was untenable with his meticulous nature, as well as that under the law, BNM was the banker and financial agent to the Government with the remainder of its net profit to be paid into the Federal Consolidated Fund.

The report said as pointed out by Herbert, he had expected Dr Mahathir to be outraged but his reaction was quite normal with him uttering “sometimes we make profit, sometimes we make losses”.

“His reaction to and acceptance of the huge forex losses suggest that he could have been aware of the forex dealings and its magnitude,” said the report.

The RCI also found Dr Mahathir’s claim that he could only remember the amount of RM5bil forex losses when informed about it in a meeting with Anwar and Herbert in late 1993 to be “questionable”.

It said this was because based on testimonies of other witnesses and documentary evidence, the RM5.7bil only surfaced when Bank Negara’s 1993 annual report was presented to the Cabinet on March 30, 1994.

“Despite his denials, the Commission is of the opinion that a thorough investigation should be carried out to determine the extent of his involvement and liability,” said the report.

By Martin Carvalho, Hemananthani Sivanandam, Loshana K. Shagar, and Rahmah Ghazali The Star

Police set up taskforce to probe possible criminal offences over Bank Negara’s forex losses

Inspector-General of Police Tan Sri Mohamad Fuzi Harun says police will
open investigation paper following a report that was lodged by Royal
Commission of Inquiry (RCI) secretary Datuk Dr Yusof Ismail. (Image is
for illustration purpose only).

KUALA LUMPUR: Police have set up a taskforce to investigate possible criminal breach of trust and cheating which may have been committed during Bank Negara Malaysia’s foreign exchange losses in 1990s

Inspector-General of Police Tan Sri Mohamad Fuzi Harun said police would open investigation paper as the forex Royal Commission of Inquiry (RCI) had lodged a police report this afternoon.

“A taskforce has been formed and it will lead the investigation. We are investigating the case under Section 409 of the Penal Code for criminal breach of trust,” he told the New Straits Times when contacted.

RCI’s secretary Datuk Dr Yusof Ismail, who is the Finance Ministry Strategic Investment Division director, had lodged a report at Putrajaya police headquarters at 4.10pm asking police to start an official investigation.

In the police report, it was stated that those who were involved in the alleged wrongdoings were Bank Negara Malaysia (BNM) officers, BNM Board of Members, National Audit Department, Finance Ministry and the prime minister who served during the period.

Royal Commission of Inquiry (RCI) secretary Datuk Dr Yusof Ismail seen
leaving the Putrajaya police headquarters after lodging a report. Pic by
AHMAD IRHAM MOHD NOOR

The RCI, in its 528-page report that was tabled in Parliament today, said it believed that Datuk Seri Anwar Ibrahim, who was Finance Minister at the time, had misled the government and concealed the actual losses suffered by BNM.

RCI also said it believed that the prime minister at the time, Tun Dr Mahathir Mohamad, had approved Anwar’s “misleading statements”.

The commission also revealed that the losses were far larger than that what was initially reported by the central bank, RM31.5 billion as against RM5.7 billion, in the period of three years.

Yusof spent almost 40 minutes at the police headquarters and later spoke to reporters who were waiting outside.

He said in the report, the commission had requested the police to start a official investigation on the possible criminal breach of trust, forgery and other wrongdoings which may have been committed during the forex activities.

“Our report is basically requesting the police to start investigation and for the Attorney-General Chambers to take action based on the findings by the police,” he said.

Putrajaya OCPD Asst Comm Rosly Hassan who confirmed that the report was made, said a special unit in Bukit Aman would investigate the case.

By TEOH PEI YING and HASHINI KAVISHTRI KANNAN New Straits Times
Related Links:

 PROBE NOR MOHAMED, DR Mabatbjr, ANWAR – PressReader

It recommends that they be investigated for possible CBT, fraud

FILE PIC
Former finance minister Tun Daim Zainuddin after giving his statement to the Royal Commission of Inquiry in September.
THE RCI believes Datuk Seri Anwar Ibrahim had concealed Bank Negara’s actual forex losses from the cabinet, and that Tun Dr Mahathir Mohamad condoned his actions. The panel, in confirming that RM31.5 billion was lost, says there are grounds to investigate them for criminal breach of trust and fraud.
THE Royal Commission of Inquiry (RCI) into Bank Negara Malaysia’s (BNM) foreign exchange (forex) losses in the 1990s has recommended investigations against former prime minister Tun Dr Mahathir Mohamad and his one-time deputy, Datuk Seri
Anwar Ibrahim.
The RCI, in its 528-page report that was tabled in the Dewan Rakyat yesterday, said the duo had
concealed facts from the cabinet.
It also recommended that Dr Mahathir and Anwar be investigated for criminal breach of trust and fraud.
“There is a basis for an official police investigation into BNM board of directors, National Audit Department, then finance minister and prime minister for criminal breach of trust and fraud in the performing of the speculative forex transactions and in hiding the losses from the cabinet and Parliament,” the report said.
Former BNM adviser Tan Sri Nor Mohamed Yakcop was also implicated as the commission found that he was responsible for the billions of ringgit in losses.
RCI had recommended that Nor Mohamed be investigated for alleged criminal breach of trust and for allegedly contravening the Central Bank Ordinance 1958.
The commission also found that former finance minister Tun Daim Zainuddin had allegedly abetted Nor Mohamed. Daim was finance minister until 1991 before he was replaced by Anwar.
BNM lost RM31.5 billion in forex trading between 1992 and 1994. Nor Mohamed was
in charge of several portfolios in BNM at the time, including the management of external reserves.

 

BN and Opposition reps at loggerheads over report – Nation

RCI says Dr M helped in concealing RM31.5bil forex losses 

RCI says Dr M helped in concealing RM31.5bil forex losses …

‘Probe Nor Mohamed for possible CBT’ – Nation

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PAC blamed Penang Island City Council (MBPP) for failing to enforce laws on hillside development


Becoming bald: A view of the clearing work seen at Bukit Relau which was visible from the Penang Bridge in November last year.

GEORGE TOWN: The Penang Public Accounts Committee (PAC) had faulted the Penang Island City Council (MBPP) for failing to monitor and enforce laws on hillside development in the state.

In its report on hill land development tabled on May 19, PAC said the lax monitoring not only resulted in unchecked hill clearing, but landowners were able to build houses, chalets, hotels and restaurants on Penang’s hill range.

“This situation happened because of MBPP’s failure to monitor and patrol hill land after notices were issued to landowners.

“This led to risks of soil erosion, landslides, mudslides, river sedimentation and disruptions to the surroundings,” it stated.

PAC’s report gained public attention after Penanti assemblyman Dr Norlela Ariffin brought it up in a dialogue session held by Penang NGOs and residents associations on flood and landslides on Sunday.

She told 200-odd members of the civil society that the report was tabled in the state assembly but never presented.

PAC stated that according to the state Audit Department, out of 31 illegal hill land clearing cases in 2015, four were in the Teluk Bahang water catchment area.

The committee, chaired by Bagan Dalam assemblyman A. Tanasekharan, visited nine of the cases on March 1.

It highlighted the Bukit Relau hill clearing case 410m above sea level and visible from Penang Bridge.

“Media reports and public comments should have been enough for MBPP and other authorities to take immediate action.

“Mitigation works on Bukit Relau have taken so long to be completed. The local authorities neither monitor the work frequently nor supply regular updates,” it added.

On illegal clearing that took place on Penang Hill, PAC expressed frustration that the actual dates and specific locations of the earthworks could not be determined because of the unsatisfactory records and monitoring.

“On Penang Hill, there was confusion on the existing agricultural plot and the new clearings.

“There are no definitions of allowable hill land agricultural works that involves digging,” it added.

PAC also objected to an earlier suggestion by the state Local Government Committee to exclude hill land earthworks related to agricultural activities from needing work permits.

Source: The Star by Arnold Loh

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Call to reassess Penang hillside projects, councillor addresses full council meeting of MBPP


Council should not bow to development or political pressure, says city councilor, Khoo

 

‘Politicians should be ‘wakil rakyat’ and not ‘wakil pemaju’ – CAP legal advisor Meenakshi


A city councillor has called for the Penang Island City Council to impose a moratorium and reassess all development projects involving hill slopes in the wake of the deadly landslide on Oct 21.

THE Penang Island City Council (MBPP) has been urged to impose a moratorium on hill developments and reassess every hillside and hill slope development projects.

Khoo Salma Nasution said as a new councillor, she was surprised to learn that certain policies and guidelines were made at state level and then passed down to the council without discussion.

“As a body with the expertise and technical experience to handle physical development planning, the council should ensure its own rules are not compromised and should not bow to development pressure or political pressure just because Penang is a land-scarce state.

“The council is tasked with spearheading the city’s physical development according to the Town and Country Planning Act and the State Structure Plan 2020.

“The rules and guidelines must follow the Penang Structure Plan as well as minimum safety and environmental guidelines,” she said in her adjournment speech during the full council meeting at the City Hall yesterday.

Khoo urged the council to reaffirm all policies, processes, and guidelines to protect the hills.

“New planning rules for development projects, taking into account the public interest, environmental interest and the interest of affected stakeholders and neighbourhoods, need to be introduced as well,” she said.

Khoo said according to the State Structure Plan valid until 2020, development density was set at 15 housing units per acre (0.4ha) in a secondary corridor like Tanjung Bungah.

She said 30 units were allowed per acre in a primary corridor and 87 units per acre for transit-oriented development.

“The state government, however, has already raised the development density to 128 units per acre overall.

“When development is not planned according to the right principles, disaster is likely to happen,” she said.

MBPP mayor Datuk Maimunah Mohd Sharif declined to comment as she had just received a copy of Khoo’s speech.

“I will definitely discuss the matter at the next full council meeting,” she said.

Source: The Star by N. Trisha

Related Links: 

 Penang Forum-nominated councillor addresses full council meeting of MBPP

This is Khoo Salma’s full address (the Malay version below) yesterday: I
was nominated by Penang Forum to be the representative and the voice of
NGOs, including Penang Hills Watch, in the Penang Island City Council
from early this year. My predecessor Dr Lim Mah Hui served with the
council for six years.

 

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