Tough questions on Penang turnel project; Engineering Consultant arrested in probe


 

 

 

In-depth query: A screen grab of the video where Dr Wee demanded explanations over the controversial Penang undersea tunnel.
Dr Wee, is trained as a civil engineer has a Master’s in traffic engineering and a PhD in transportation planning, believed to have worked as an Environmental Impact Assessment and Traffic Impact Assessment consultant for more than a decade. He is currently a minister in the
Prime Minister’s Department
.

Wee poses more questions to Guan Eng on tunnel project

Wee raises doubt over paid-up capital and ability of SPV – Nation

Lim: Contract between CRCC and Penang govt legally binding …

PETALING JAYA: Datuk Seri Dr Wee Ka Siong threw hard-hitting questions at the Penang government, demanding an explanation for the controversial undersea tunnel project.

The MCA deputy president raised major concerns in videos uploaded in two parts to MCA’s YouTube channel.

He zeroed in on the changes in the paid-up capital of a special purpose vehicle (SPV) and how two Chinese construction giants have “disappeared” from the SPV shareholding.

He also touched on the state government’s “agreement” with China Railway Construction Corpo­ration Ltd (CRCC) and Penang’s insistence that no money was paid for the project.

In the videos, also uploaded on Dr Wee’s Facebook page, the Minister in the Prime Minister’s Department had a whiteboard to his left showing the changes in the shareholding while a television screen to his right displayed various documents.

Dr Wee wanted Penang Chief Minister Lim Guan Eng to clarify why the SPV Consortium Zenith Construc­tion Sdn Bhd’s paid-up capital was reduced from RM4.6bil to RM70.5mil.

He said while Beijing Urban Construction Group (BUCG) was no longer a shareholder in the SPV, CRCC was never in the picture.

Dr Wee said back in March 4, 2013, the state government’s official newsletter Buletin Mutiara published an article quoting state secretary Datuk Seri Farizan Darus as saying the SPV had a paid-up capital of RM4.6bil, with Zenith Construction Sdn Bhd and CRCC jointly holding a 70% stake in it.

“We are in great shock because just days ago, CRCC went on record to deny ever being a shareholder and developer of the undersea tunnel SPV.

“Without the participation of CRCC and BUCG, the actual capital of the other component SPV back then is only RM8.2mil,” said Dr Wee, who is trained as a civil engineer and has a Master’s in traffic engineering and a PhD in transportation planning.

He, however, said the SPV had a total paid-up capital of RM70.5mil.

Dr Wee added that currently, Zenith Construction has a 47.12% equity in the SPV, Juteras Sdn Bhd (0.75%); Kenanga Nominees (Tempatan) Sdn Bhd (38.92%) and Vertice Bhd (formerly known as Voir Holdings Bhd, 13.21%).

He also revealed that Consortium Zenith BUCG Sdn Bhd was only registered on July 5, 2012, one day before the state government invited the consortium to submit a request for proposal (RFP).

“Chief Minister, you may argue that they formed the consortium just one day before to make it to the tender.

“But bear in mind your state secretary said the consortium was selected based on the financial and technical strength of CRCC and BUCG,” he said, adding that Zenith Construction was only less than three months old when it was then invited to participate in the pre-qualification for the tender.

Dr Wee also said that Acknowled­gement of Commitment signed by the state government with CRCC was not a legally binding document.

“Where is the stamping of documents as required and which is the Court of Arbitration to arbitrate disputes?” he asked.

Dr Wee also questioned Lim’s stand that not a single sen was paid when state exco member Lim Hock Seng replied in the state assembly on March 19 last year that a land swap deal worth RM208mil was identified.

“The said land has been developed and sales of properties for the City of Dreams (which is built on the land) are ongoing. Aren’t you aware of that?

Dr Wee also urged Lim to give a detailed breakdown of how Consor­tium Zenith reaped a significant after-tax profit of RM60mil for the financial year that ended on Aug 31, 2015, when it had only conducted studies and had yet to start any construction work.- The Star

Engineering Consultant arrested in tunnel probe 

‘Datuk Seri’ remanded for five days in Penang tunnel probe – Nation 

Datuk Seri remanded in probe

Magistrate Ainna Sherina Saipolamin allowed the 62-year-old “Datuk Seri” to be held in custody until Jan 29.

Engineering consultant remanded for five days – Nation

 

In custody: The consultant being taken out of the magistrate’s court in Putrajaya. — Bernama

 

PETALING JAYA: A senior engineering consultant in her 50s is the latest to be detained in connection with the probe over controversies surrounding the Penang undersea tunnel project.

The consultant is believed to have forged claim documents for the feasibility studies valued at RM305mil for the mega project of three main roads and an undersea tunnel to the state government, said a source familiar with the Malaysian Anti-Corruption Commission (MACC) investigation.

The woman is expected to be remanded at the Putrajaya magistrate’s court today.

She was arrested at MACC headquarters in Putrajaya at 6.10pm yesterday after her statement was recorded.

“The investigators are trying to determine if other individuals were involved in the preparation of the falsified documents,” the source added.

The engineering consultant is the third person to be arrested in MACC’s investigations into the Penang undersea tunnel project.

Two high-ranking Datuks of development and construction companies were earlier arrested on Jan 9 before being remanded for six days beginning Jan 10.

The remand was then extended for another five days from Jan 15.

They were released on MACC bail of RM200,000 each on Jan 19 by the Putrajaya magistrate’s court.

On Monday, MACC deputy chief commissioner (operation) Datuk Seri Azam Baki had said that more individuals would be hauled up over the project.

The RM6.3bil mega project includes building the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in north Butterworth, 10.53km North Coastal Paired Road from Tanjung Bungah to Teluk Bahang, 5.7km Air Itam-Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive-Tun Dr Lim Chong Eu Expressway bypass.

The MACC has since recorded statements from more than 70 people and visited more than 40 premises in the course of their investigation.

By Royce Tan The Star

State govt can only hold SPV liable, says Wee

PETALING JAYA: Although Penang Chief Minister Lim Guan Eng has reiterated that not a single sen was paid for the feasibility study of the undersea tunnel, the fact remained that it was paid in kind, said Datuk Seri Dr Wee Ka Siong.

Dr Wee, who is MCA deputy president, said the crux of the problem was that the state government had no contractual nexus with the contractor.

“The state government can only hold the special purpose vehicle (SPV) liable, not the contractor.

“Don’t confuse the people with the SPV and the contractor. SPV means you can hold it liable.

“If a contractor is subsequently awarded by the SPV, that’s between the contractor and the SPV.

“If the SPV fails to pay the contractor, the contractor has no obligations (to construct),” he said.

He added that he had conducted a comprehensive research and he knew what happened.

“I welcome this project, but it must be carried out in a proper manner. This is what I want.

“Don’t blame others. If at all you need to blame somebody, it is your SPV that you appointed.

“They keep on delaying the report, not us. We have no say in the report and we’ve not even seen it,” said Dr Wee.- The Star


Related Links:

 Difficult questions over tunnel sea project has party in a tight spot …

 

Contract value of roads increased significantly, says See-To – Nation …

 

Penang has enough roads and linkages, say activists – Nation |



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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

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Datuk Shafie Apdal nabbed in MACC investigation


KOTA KINABALU: Datuk Seri Mohd Shafie Apdal has been arrested, a day before his 60th birthday and after nearly four hours of questioning by the Malaysian Anti-Corruption Commission.

Shafie, who was arrested at 9pm yesterday, is expected to be taken to the Kota Kinabalu High Court to be remanded today. MACC deputy chief commissioner (operations) Datuk Azam Baki confirmed the arrest.

The Parti Warisan Sabah president arrived at the MACC office at about 5.15pm yesterday, after flying in from Kuala Lumpur, to be questioned over projects implemented during his watch as Rural and Regional Development Minister between 2009 and 2015.

In a white shirt, Shafie Apdal was accompanied by his wife Datin Seri Shuryani Shuaib; Warisan vice-president Datuk Peter Anthony who was detained earlier and released on bail; and their lawyers Martin Tommy and Loretto Padua.

Before he left for the MACC office, Shafie told reporters at his Taman Gold View home: “We are willing to facilitate and when they called me, I flew back from Kuala Lumpur.

“It’s a process of law and we need to give our cooperation. We are not going to obstruct and I know that MACC is just doing its job.”

He also said that he was saddened by the detention of his two siblings – Hamid and Yusof – in the investigation but reiterated that MACC was just doing its job.

Urging his supporters to remain calm and to continue the party’s work, Shafie and a relative led a short prayer before heading to the MACC office.

Earlier, a crowd of supporters gathered at the Kota Kinabalu International Airport to greet him.

Later, Shafie was taken to Queen Elizabeth Hospital for overnight observation for having high blood pressure, said his lawyer and Warisan deputy president Darell Leiking.

MACC has so far arrested 10 people, including Shafie’s brothers, his nephew Warisan Youth chief Azis Jamman, Peter, Tenom Umno Youth chief Jamawi Jaafar and his Tawau counterpart Ariffin Kassim, Warisan media representative Armarjit Singh, Hamid’s son-in-law Manzur Hussein Awal Khan, a 52-year-old local contractor and a 40-year-old senior civil servant in Putrajaya, over the case.

Hamid, who was warded at Damai Specialist Hospital for health problems since Sunday has been released on MACC bail.

Magistrate Stephanie Sherron Abbie, granted Hamid bail at RM50,000 in two sureties.

MACC prosecuting officer Mohd Faliq Basirudin said Hamid’s remand was supposed to only end today but he was released earlier because the investigation on him was complete.

Stephanie went to Gleneagles Hospital later, for the release of Manzur, 37, who is also warded over health issues.

He was granted bail at RM30,000 in two sureties and ordered to report once a month to the MACC office.

Yusof is still in MACC custody.

 Source: by stephanie leeruben sario The Star





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Another government department, seriously? Beef up the existing enforcement agencies !


YET another government department is going to be set up. Isn’t it common knowledge that the Government has serious budget constraints and is not recruiting to add to an already bloated civil service? And now, another tale of bureaucracy is being spun.

No wonder Malaysian Anti-Corruption Commission chief commissioner Tan Sri Dzulkifli Ahmad is upset over the planned formation of the National Integrity and Good Governance Department (JITN)

Minister in the Prime Minister’s Department Datuk Paul Low has said the proposed department is expected to improve good governance in the civil service.

How would the JITN as a new and probably tiny department be able to do the job? It would probably involve plenty of miracles since there is a reported 1.6 million civil servants to deal with, although Cuepacs says the figure is only at 500,000. It will be a Herculean task to move this mountain of manpower for what’s needed.

Low must surely have good intentions in wanting to set up the JITN, but its objectives and plans remain, at best, vague, at this point.

Its name and role seem almost identical to that of the Integrity Institute of Malaysia (IIM) and Enforcement Agency Integrity Commission.

The IIM, the brainchild of then Prime Minister Tun Abdullah Ahmad Badawi, was set up in 2004 and continues to function.

Its website reads: “IIM’s role is to facilitate the aims and objectives of the National Integrity Plan (NIP). The main objective of IIM is to act as a machinery in the implementation of the NIP towards developing a nation that is of high integrity, resilient and that embraces universal good values.”

The key roles of the institute are: to conduct research related to the integrity of institutions and that of the community; to organise conferences, seminars and forums; to elicit opinions from various sectors on the progress made or on the obstacles faced in implementing integrity; to publish and circulate printed materials as well as formulating and implementing training and educational programmes; to recommend new policies for the enhancement of integrity and ethics; and to advise the Government on strategies and programmes in enhancing integrity.

The voice of cynicism is growing loud and people are questioning the functions of this department, more so if it has no bite. MACC has strongly objected to it, with Dzulkifli labelling it a waste of public funds.

Who can blame the graft buster for being disgruntled? His investigators are overworked and the department understaffed, under budget and now, suddenly, the MACC learns that a new department is to be set up.

If it has no powers and does not concern the MACC, then it is on its way to being another government department which publishes more reports that nobody reads and which will most likely end up gathering dust.

Dzulkifli, who is hard-pressed to secure a heftier budget for his department, has publicly objected to the setting up of JITN, saying the funds could be better used to enhance current enforcement agencies and the wellbeing of its staff.

“What needs to be done is improve and strengthen the laws, human resources and welfare of existing agencies.

“The Government should oversee the welfare of law enforcers. Go and see the conditions of police barracks. They are poorly maintained,” he said.

Dzulkifli urged the Government to re-examine the salaries and housing schemes of law enforcers.

“If we want to decrease corruption and abuse of power in enforcement agencies, the problem will not be solved if law enforcers do not have their welfare taken care of.

“I will defend them (law enforcers) when needed, and take action against them (if they do wrong).

“But we also need to see the state of their welfare,” he told reporters at a corruption-free pledge signing ceremony in Sungai Petani recently.

“Forming a new department will be costly and require hiring new staff. Their scope of duties will be similar to (that of) other law enforcers,” he added.

And even in less-than-ideal circumstances, the MACC has continued with its crime-busting duty, its stats backing up its hard work. Up to last month this year alone, the commission has arrested 728 individuals, including 349 civil servants, 215 members of the public and 151 from the private sector.

So far, 316 people have been accused of corrupt practices this year. Nearly half of them – 155 individuals – are from the civil service. Last year, only 113 civil servants had the long arm of the law catch up with them.

MACC statistics reveal that 1,629 cases (up to last month this year) involved civil servants, compared to 2,008 the whole of last year, with 654 cases concerning members of the public and 174 involving those from the private sector.

Until September this year, 432 investigation papers were opened against civil servants, compared to 526 last year. Half of that figure – 215 – implicated members of the public, 102 members of the private sector, and seven from other categories, including politics.

Up until last month, 756 investigation papers were opened.

Low said the Cabinet has given the green light for the setting-up of JITN to serve as a coordinating body to lead transformational changes in the public and private sectors.

He said the department would focus on good governance, integrity and human rights. How it will co-exist with Suhakam (Human Rights Commission of Malaysia) is something which needs explaining.

JITN received the Cabinet’s nod on July 28, and is currently under review by the Public Service Department pending final approval. The department was previously a division under Low in the Prime Minister’s Department.

There isn’t much the MACC can do now since the Cabinet has already approved the move.

But what the Government should consider doing is to beef up the MACC where manpower and resources are concerned, given the flurry of cases flying its way.

By Wong Chun Wai The Star

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group’s managing director/chief executive officer and formerly the group chief editor.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.
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MACC freezes RM10mil in SDFC probe – Nation

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Graft-busting to expand after Selangor Unisel deal and Penang cases


MACC raids Unisel, MBI and contractor’s office … – The Sun Daily

MACC officers conducting raids on University Selangor, Shah Alam on Aug 22, 2017. — Sunpix by Zulfadhli Zaki

 KUALA LUMPUR: After Penang and Selangor, more states can expect to come under the scrutiny of graft-busters.

“It has been ‘hot’ these days. What other states after this? Let’s wait and see,” hinted Malaysian Anti-Corruption Commission (MACC) chief commissioner Datuk Dzulkifli Ahmad during his speech at the launch of a play, Bahara Emas, which will be held from October to December nationwide in conjunction with the commission’s 50th anniversary.

He said more arrests and charges against the corrupt would take place from now until the end of the year, adding that the days were numbered for those still blinded by material possessions and money.

On allegations that the MACC’s actions on certain parties were “planned”, Dzulkifli stressed that they were not biased in their investigations.

“We don’t choose our targets. Whoever it is, whether they are politicians, civil servants or corporate figures, we will take action.

“Once a report is received and we have determined that it has a strong basis, we will carry out raids and seize documents.

“Once there is enough evidence, only then will we make arrests,” he said, adding that proper planning must be done before his officers moved in “at the right time”.

Earlier in his speech, Dzulkifli revealed his inspiration to make weekly arrests came from a 2015 Indian action movie called Gabbar Is Back, depicting the protagonist’s mission to rid corrupt officials.

“We want to empower the people to stand up and say no to corruption.

“Why? Because the MACC is here with you.

“We are the people’s voice and machinery,” he said.

Citing a case in Penang which caused pollution and another in Pahang over illegal bauxite mining, Dzulkifli said these cases happened due to issues of corruption and abuse of power.

He pointed out that those greatly affected by corruption were the people and not the ones in power, which was why “the MACC is here to carry out a probe”.

By Royce Tan The Star

MACC probes Unisel campus

 

 

 

 

SHAH ALAM: The Malaysian Anti-Corruption Commission (MACC) is currently conducting a raid at Universiti Selangor (Unisel) in Section 7 here.

Six uniformed officers from the national anti-graft body arrived at the campus here at 9.50am on Tuesday in two separate vehicles.

Upon entering the campus’ administrative building, the officers were greeted by staff members who brought them up to the offices.

The MACC is simultaneously raiding four other offices of Unisel, Mentri Besar Incorporated (MBI) and Jana Niaga Sdn Bhd offices in connection with the case.

Several uniformed officers from the MACC going in to the Unisel main campus’ administration office at 11.10am.

Uniformed MACC officers were also at the Unisel main campus in Bestari Jaya.

They are currently conducting a raid at the university’s administration office which is located inside the library building.

Three officers, meanwhile, arrived at the Mentri Besar Incorporated (MBI) office at Bangunan Darul Ehsan, in Shah Alam to conduct a raid.

In KUALA LUMPUR, anti-graft officers are raiding a Jana Niaga office on Jalan 4/76C.

Four officers arrived at 10.25am in a vehicle with heavily tinted windows to conduct the raid.

It is believed the MACC is acting on a report lodged with it against Selangor Mentri Besar Datuk Seri Azmin Ali and MBI over a dispute between Unisel and its contractor Jana Niaga.

It had been reported that Jana Niaga allegedly received monetary compensation and a new contract from Unisel, despite failing to complete a previous contract.

Source: The Star by danial albakri, m. kumar, andallison lai

Commission raids Unisel, MBI and contractor’s premises to investigate RM16mil payment

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SHAH ALAM: The Malaysian Anti-Corruption Commission (MACC) carried out simultaneous raids on five locations in Selangor and Kuala Lumpur in its probe of RM16mil allegedly paid by a Selangor government-owned company to a private firm for maintenance work.

The places raided included the Universiti Selangor (Unisel) main campus and office, two offices belonging to the contractor – Jana Niaga Sdn Bhd – and the Menteri Besar Selangor Incorporated (MBI) office.

In all, officers took away 10 boxes and one suitcase filled with documents relating to the payment made by MBI to Jana Niaga for maintenance work of student accommodations at the Unisel main campus in Bestari Jaya.

MACC officers leaving the Jana Niaga office in Desa Pandan after the raid. Jana Niaga was responsible for maintenance work on student accommodations at the Unisel main campus in Bestari Jaya.

Sources said MBI had allegedly made the payment to Jana Niaga via two transactions of RM10mil and RM6mil in 2015 and 2016 respectively.

Initial reports received by MACC showed that MBI had paid Jana Niaga even though its contract had been terminated by Unisel.

The sources added that the MACC probe focused on the reasons why the payments were made even though Jana Niaga had failed to fulfil the contract agreement for the work done in Unisel in 2012.

MACC director of investigations Datuk Simi Abd Ghani said the investigating teams seized documents related to the case from the different locations.

“We’re still in the early stage of our investigations and we will gather strong and sufficient evidence before we proceed,” he added.

MACC officers raided the Unisel main campus in Bestari Jaya and office here, Jana Niaga’s offices in Desa Pandan and Bestari Jaya, and MBI’s office in Bangunan Darul Ehsan here.

At the MBI office, five MACC officers started their inspection at 10.45am and left at 5.50pm with a medium-sized suitcase and a box filled with documents.

Four boxes of documents were taken from the Unisel Treasurer’s office in Section 7 here at 4.30pm after the officers spent nearly seven hours there.

Other MACC officers also went to the Unisel main campus in Bestari Jaya, Kuala Selangor, and left with three boxes of documents at 4.50pm.

A Unisel spokesman said it would give its fullest cooperation to the MACC investigation.

In Kuala Lumpur, four uniformed officers went to Jana Niaga’s office in Jalan 4/76C in Desa Pandan at 10.25am and left carrying two large boxes of documents at 4.26pm.

When approached, one of the officers said the documents were from 2011 onwards. – The Star

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NGO alleges abuse of power by MBPP councillors


GEORGE TOWN: A non-governmental organisation has lodged a report with the Malaysian Anti-Corruption Commission (MACC) against two Penang Island City Council (MBPP) councillors for alleged abuse of power.

Persatuan Surplus Pulau Pinang chairman Sophian Mohd Zain urged the commission to probe the matter thoroughly.

He said the first case involved councillor Sharuddin Shariff who lives in a public housing unit in Sungai Pinang despite receiving a monthly allowance of RM4,000 from the council.

“This is not right at all,” he said before lodging the report accompanied by former MBPP councillor Syazwani Mohd Amin.

Sophian also lodged another report against councillor Azrizal Tahir whom he alleged held two state-appointed posts.

He said Azrizal as a councillor should not have held the Village and Security Development Committee (JKKK) post and receive allowances from both positions.

When contacted, Azrizal urged the complainant not to trouble the MACC by asking them to probe cases with no basis.

He said those who lodge such reports should do their homework first.

“A press conference will be arranged to explain the matter soon,” he said briefly.

Source: Edmund Lee newsdesk@thesundaily.com


MACC reports filed against PKR duo

GEORGE TOWN: Two PKR’s Penang Island city councillors have denied any wrongdoings as alleged by two non-governmental organisations which lodged reports with the state anti-graft body.

One of them, a four-term councillor, said there were no rules or regulations to prevent a councillor from becoming a village development and security committee (JKKK) chairman.

“But under a state policy which was enforced last year, we were advised not to hold the two positions at the same time.

“I have since let go of my JKKK post. I urge the complainants to check with the district office first and not to hurl baseless allegations against us,” he said when contacted.

Earlier, two NGOs – Persatuan Kebajikan Surplus Pulau Pinang and Kota – lodged reports with the Penang MACC over the alleged wrongdoings of the two councillors in Jalan Sultan Ahmad Shah yesterday.

Persatuan Kebajikan Surplus chairman Sophian Mohd Zain claimed one councillor was the JKKK chairman of Permatang Damar Laut.

“A councillor receives allowance from the local government while a JKKK post is appointed by the state government. This is a conflict of interest.

“We hope the state government will clear the air in the name of CAT (Competency, Accountability and Transparency),” he said.

Also present was former councillor Noor Syazwani Md Amin, who was terminated from her post in April.

Sophian also claimed that a first-term councillor still had a People’s Housing Programme (PPR) flat in Sungai Pinang despite having an allowance of RM4,000.

The maximum eligible household monthly income for a PPR applicant is RM2,500.

A councillor is entitled up to RM1,200 in allowances for attending meetings and a RM300 mobile phone subsidy.

“How could he still be holding the key to a PPR flat for a RM100 monthly rental? The PPR flats are meant for the poor.

“The councillors are the policy makers in the local government while the PPR flats are under the purview of the council.

“I don’t think the council staff would dare to act against the councillors,” he added.

Sophian hoped the MACC would investigate the matter.

The said councillor could not be reached for comment.

Source: by Tan Sin Chow he Star

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Penang exco man held in graft probe for abuse of power


 

 

Arrest linked to illegal operation of carbon filter factory in Bukit Mertajam

For 10 years, a factory has been illegally burning sawdust to produce carbon for filters, forcing villagers and schoolchildren in parts of Bukit Mertajam to breathe dust-laden smoke every day. The matter has now flared up with the arrest of Penang exco man Phee Boon Poh and two of the factory’s directors by the MACC. All three are set to be remanded today.

GEORGE TOWN: An illegal carbon filter processing factory has become a burning issue in Penang with the arrest of state executive councillor Phee Boon Poh and two factory di­­rectors by graft-busters from the Malaysian Anti-Corruption Commis­­sion (MACC).

All three are expected to be remanded today.

The factory in Kampung Sungai Lembu in Bukit Mertajam was in the news on Wednesday when MACC officers raided its premises and seized several documents.

Yesterday, a team of five MACC officers raided Phee’s office at Level 53 in Komtar at about 11.30am and took away more documents.

Phee, who chairs the state Wel­­fare, Caring Society and Envi­­ron­­ment Committee, was asked to report to the Penang MACC headquarters in Jalan Sultan Ahmad Shah. He was arrested at 3.30pm when he turned up at the MACC building.

MACC deputy chief commissioner (operations) Datuk Azam Baki said Phee was detained under Section 23 of the MACC Act for abuse of power.

The section provides for a jail term of up to 20 years and a fine of up to five times the value of the bribe or RM10,000, whichever is higher.

The 66-year-old Phee was brought back to his house in Butterworth at about 5pm in his car and escorted by two MACC vehicles. It is learnt that he packed some personal be­­longings from his house before lea­­ving for the state MACC headquarters at 7.05pm.

The MACC also arrested a 70-year-old man and his 37-year-old son, the manager and director of the factory, at 6.05pm and 6.35pm respectively.

The two were summoned to the state MACC headquarters to give their statements before they were detained.

Lawyer R.S.N. Rayer, who accompanied Phee to the Penang MACC headquarters, said the exco man was asked to meet MACC officers after 2pm.

“I was informed that they (MACC officers) went to his office and took some documents including letters that he wrote. They wanted to re­­cord his statement regarding the documents.

“He gave his full cooperation and presented himself at the MACC office. I am surprised that he was arrested,” he said before leaving the state MACC building at about 4.30pm.

Earlier, the five MACC officers spent more than an hour in Phee’s office.

Shortly after they left, Phee and four assistants walked out of the office.

Phee declined to comment on the raid.

He is the second member of the current Penang state administration to be arrested by the MACC.

Chief Minister Lim Guan Eng was arrested in June last year over the purchase of a RM2.8mil bungalow in Pinhorn Road.

He was subsequently charged with using his position as the Chief Minister of Penang to gain gratification for himself and his wife, Betty Chew Gek Cheng, by approving the application for conversion of agriculture land to a public housing zone in south-west Penang to the com­­pany, Magnificient Emblem Sdn Bhd.

He allegedly committed the of­­fence while chairing the Penang State Planning Committee meeting at the operations room in the Komtar building on July 18, 2014.

The charge under Section 23 of the MACC Act 2009 provides for imprisonment of up to 20 years and a fine of up to five times the sum or value of the bribe, or RM10,000, whichever is higher, upon conviction.

Lim faces a second charge of using his position to obtain a plot of land and a bungalow located at No 25 Jalan Pinhorn, George Town, on July 28, 2015, from businesswoman Phang Li Koon for RM2.8mil, a price which he allegedly knew did not commensurate with the property’s market value at the time of RM4.27mil.

The charge, under Section 165 of the Penal Code, provides for a jail term of up to two years or a fine, or both, upon conviction.

Late last night, Lim was among several DAP leaders and members who turned up outside the state MACC headquarters to stage a candlelight vigil in support of Phee.

Source: The Star by crystal chiam shiying, chong kah yuan, lo tern chern, andlogeiswary thevadass

10 years of smoke in the eyes for villagers

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BUKIT MERTAJAM: For about 10 years now, the villagers of Kampung Sungai Lembu have been forced to breathe air laden with pollutants. Children going to school at SJK(C) Kampung Sungai Lembu also have had to put up with the thick dust.

The air is thick with a burning smell from the processing activities at an illegal carbon filter processing factory, just 1km away from the school.

The 5,000sq-m factory, about the size of a football field, has piles upon piles of sawdust, much of it burning in deep pits.

The tall chimneys spout white pollutant-filled smoke into the air which is carried to the nearby villages by the slight breeze.

A source from the Department of Environment revealed that the factory also did not have an air pollution control system.

Kampung Sungai Lembu Deve­lop­ment and Security Committee chairman Tan Sing Lee, 58, said the factory also carried out open burning of sawdust to produce carbon.

“Every time the wind blows our way especially in December, the air is polluted. At night, the air is foggy and villagers complain about the smell,” he said.

“We reported the matter to Penanti assemblyman Dr Norlela Ariffin but no action was taken in the past two years,” he said.

The factory is also situated inside an oil palm estate, on land designated for agriculture.

Tan claimed a man in his 30s died in 2015 after he fell into one of the pits while filling it with sawdust.

A check by The Star at the factory yesterday found 20 pits, each measuring about 3m across. The pits were filled with burning sawdust and there was smoke everywhere. The sawdust is burnt to produce carbon which is then used in filters.

Permatang Pauh Umno chief Da­­tuk Mohd Zaidi Mohd Said claimed there may have been people in­­volved in covering up the issue before the raid on the factory by the Malaysian Anti-Corruption Commis­­sion (MACC) on Thursday.

“Several reports have been lodged against the factory.

It is impossible for the Seberang Prai Municipal Council to not be aware of it,” he said during a press conference in Kampung Sungai Lembu.

Also present was Parti Cinta Malaysia deputy president Datuk Huan Cheng Guan.

PKR rep Norlela glad over action against illegal factory

 

BUKIT MERTAJAM: Penan­ti’s PKR assemblyman Dr Norlela Ariffin (pic) is pleased that action is finally being taken by the MACC over an illegal factory in Kampung Sungai Lembu.

Dr Norlela said she raised the issue of the carbon filter processing factory more than two years ago. “The villagers told me about their concerns in February 2015. I raised the matter at the state assembly sitting but no ac­­tion was taken for two years,” she said.

It was in November that Dr Norlela broke down and sobbed uncontrollably at the assembly, clai­­ming the state government had failed to respond to her queries.

She lamented then that she had complained of many woes like illegal factories, frequent flooding and the lack of infrastructure like roads and proper jetties for fishermen.

“Early this year, before the state assembly sitting, villagers handed me an 18-page petition, appealing for the factory to be closed as they claimed it was affecting their health.

“It was also found that the factory was not operating according to guide­­­­lines,” she said yesterday.

In May, her allocation was withheld after she did not show up at the Yang di-Pertua Negri’s swearing-in ceremony.

Earlier this month, she complained that funds collected for flood mitigation had not been used to help her constituents.

“In Penanti alone, there are nine flood-prone areas that could greatly benefit from these funds,” she re­­portedly said, citing the Auditor Ge­­­ne­­ral’s Report 2016 Series 1 which revealed that the Seberang Prai Municipal Council had only used RM2.2mil of RM63.39mil collected from 2008 to June 2016.

Dr Norlela is among several as­­sem­­blymen who have been at loggerheads with the state leadership, often criticising it for not carrying out its duties or for not caring about the environment,

Last month, she praised the Sungai Buloh-Kajang MRT project and took a swipe at the Penang Transport Master Plan by comparing the construction cost of both projects in a video she posted on social media.


DAP’s lone ranger faces his biggest test

GEORGE TOWN: Two-term Pe­­nang executive councillor Phee Boon Poh, 66, gained fame as a vocal opposition leader when he took on 38 Barisan Nasional representatives in the state assembly when he was the sole DAP assemblyman from 2004 until 2008.

Despite being overwhelmed, the “lone ranger” raised many issues.

Although PAS was represented by Mohd Hamdan Abdul Rahman, it was Phee who questioned the policies of the state administration headed by Tan Sri Dr Koh Tsu Koon.

Phee began his political career by winning the Bagan Jermal state seat in 1990, only to lose it to Barisan’s Tan Sri Dr Sak Cheng Lum in 1995.

In 1999, he contested the Sungai Puyu seat but lost to Barisan’s Loo Ah Dee. In 2004, he wrested it from Loo with a 607-vote majority.

In 2008, he retained his state seat with a 9,201-vote majority and was appointed state Welfare and Caring Society chairman.

He later took over the environment portfolio from state exco member Chow Kon Yeow.

In the 2013 general election, he beat MCA’s Sum Yoo Keong by 16,207 votes.

Phee is a distant relative of businesswoman Phang Li Koon, who has been charged with abetment in the two corruption cases against Chief Minister Lim Guan Eng.


MACC probes Phee’s letters – Directing council to ‘stay away’ under investigation

Phee Boon Poh mobbed by the media after he was remanded in George Town. — ZAINUDIN AHAD and ZHAFARAN NASIB/The Star

PENANG: The Malaysian Anti-Corrup­tion Commission (MACC) is investigating two letters, which appear to have originated from state executive councillor Phee Boon Poh, asking that no action be taken against an illegal factory.

The letters, written in 2015 and 2016, directed the Seberang Prai Municipal Council from shutting down the carbon filter-processing factory which had been operating illegally for the past 10 years.

The MACC is also investigating whether Phee or his officials had authorised the letters telling the council to back off.

As Phee and two of the company’s directors were remanded yesterday, the MACC is expected to call up a DAP state assemblyman for questioning.

The MACC is believed to be investigating the role of this state assemblyman in the case.

It is understood that MACC is also probing the relationship between Phee and the factory owners.

It wants to find out how the factory could operate openly despite complaints from the villagers nearby.

“The illegal factory is on an agro-based land. (We want to know) why it has been able to operate without any action (taken against it),” a source told Sunday Star.

 

Too close for comfort: The illegal carbon filter-processing factory still operating and its proximity to Kampung Sungai Lembu and surrounding areas near Bukit Mertajam. 

When contacted, MACC deputy chief commissioner (operations) Datuk Azam Baki said the anti-graft body will carry out a thorough probe and look into all angles.

Azam said investigations will focus on the element of abuse of power.

“We have opened an investigation paper under Section 23 of the MACC Act.

“We will look into whether one of the suspects has given (any form of) protection to the illegal factory to enable it to continue operating the last 10 years,” he said.

He declined to elaborate further as investigations were ongoing.

Sources said anti-graft officers revisited the house of the state exco member in Sungai Puyu on the mainland to look for more evidence to assist in the probe.

It is not immediately known if documents were seized.

The homes and offices of two other suspects will also be revisited as part of the probe.

More arrests are expected in the coming days as investigations into the case widen.

Source: The Star by simon khoo, crystal chiam shiying, lo tern chern, akil yunus

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No protection for corrupt in Penang govt, says Guan Eng | Free …

 The Penang government will not protect any of its officials … Chief Minister Lim Guan Eng says he believes state exco man Phee Boon … Phee, who is in charge of the welfare, caring society and environment portfolio, was arrested yesterday by the MACC over alleged misuse of power.

 

Phee and two others remanded for five days

 

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Arrest is to whitewash corruption, claims Kit Siang

 

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