personal capacity: I wish to comment on the press statement by Jagdeep
Singh Deo as reported in Berita Daily and many other newspapers on 24
KUALA LUMPUR: The Malaysian Institute of Accountants (MIA) is investigating KPMG and Deloitte, the two accounting firms involved in signing off the accounts of the controversial 1Malaysia Development Bhd (1MDB).
The investigations are on whether the auditors in question who handled the accounts had breached the Accountants Act when signing off 1MDB’s accounts between 2009 and 2014.
The MIA has the power to regulate the accounting profession in Malaysia.
“There are complaints lodged against KPMG and Deloitte and we are investigating the auditors in question. The complaints are on the auditors and it is ongoing,” MIA’s chief executive officer Nurmazilah Mahzan told StarBiz in an interview.
Nurmazilah said it could not be determined at this stage when the investigations would be completed.
“The results of the investigations will be studied by a committee. The process is continuing but we have not got the final verdict yet. We cannot predict how long it will take at this point in time. If the auditors are found guilty or if there is a basis to these complaints then we have to wait for the judgement of the disciplinary committee,” she added.
MIA’s executive director for surveillance and enforcement Datuk Muhammad Redzuan Abdullah said the investigations were at the disciplinary committee level now and investigations had started since mid-2016.
The scandal-riddled 1MDB that had accumulated debts of RM42bil over the five years between 2009 and 2014, has had four auditors since its inception. They are Parker Randall, Ernst & Young, KPMG and Deloitte.
1MDB appointed Ernst & Young as its auditor when it was set up in mid-2009. However Ernst & Young resigned in 2010 without signing off the accounts of the fund that was set up by the previous government headed by Datuk Seri Najib Tun Razak.
KPMG stepped in to take over from Ernst & Young and signed off the accounts for the financial years ended March 31 in 2010, 2011 and 2012. The accounts were signed off without any qualification from the auditors.
Deloitte took over the auditing in December 2013 after 1MDB contended that KPMG could not “conclude” its 2013 accounts.
1MDB had also said in May 2015 that Deloitte had signed off 1MDB’s accounts for 2013 and 2014. When questions arose as to why KPMG could not conclude the accounts for 2013, 1MDB stated in 2015 that Deloitte had signed off the accounts without any qualification.
Nevertheless, resignations by Ernst & Young and KPMG as auditors then had raised questions over the fund. In the accounting world, a firm rarely leaves a job half-done, especially more so when it involves big and prominent clients such as 1MDB.
After KPMG left, 1MDB obtained an extension of six months to submit its accounts for end-March 2013.
It was reported then that KPMG had relinquished its role as auditor. Deloitte then came in and managed to close the books within the extended period of six months.
Earlier reports quoting sources said the primary reason why KPMG could not give an opinion on 1MDB’s accounts was because it was not able to make a fair assessment of the value of the assets backing the fund’s US$2.3bil investment placed with a Hong Kong-based asset management company.
Subsequently Deloitte managed to complete the books wherein the fair value of the investments was put at RM7.18bil based on the assessment done by a third party engaged by the fund administrator.
Recent reports said KPMG which had then signed off on three unqualified audit reports for 1MDB, had informed its board of directors that the audited financial statements did not reflect a true and fair view of the company.
It was also reported that Deloitte in 2016 also said its audit reports on 1MDB’s financial statements issued on March 28, 2014, and Nov 5, 2014, for the financial years ending 2013 and 2014 should no longer be relied upon.
Credit: Daniel Khoo The Staronline
I love dogs. I’ve always had one, from since I was a child, and now, I have three – two Siberian huskies and a poodle.
Despite their differences – in age and breed – they truly love each other, and it’s a real blessing to have this trio of girls in our family.
But I can’t echo that sentiment for some of our politicians. Politics in Malaysia has gone to the dogs. The concerned players are already in dog fights and the general election hasn’t even been called yet.
It’s still early days, although everyone reckons polling is on the horizon. And we’re all too familiar with the dog-eat-dog nature of politics.
Politicians are already snarling, slobbering and barking at each other. Everyone seems to be calling each other liars and running dogs daily.
Therefore, this has left many of us confused. Who is telling the truth? The incessant snapping doesn’t seem to be seeing an end. There is no light at the end of the tunnel, so to speak.
Well, it was the Penang undersea tunnel that got the ball of nastiness rolling. There’s no resolution in sight, for sure, and if you think we should only cross the bridge when we get there, forget it. It’s under-utilised, at least one of them, anyway.
Well, as the saying goes, every dog has its day, but at some point, it’s going to be dog-gone for any politician who can’t stick to the truth or remember the lies he told. For certain, it will be one hell of a dog day afternoon when that happens.
Meanwhile, opposition leader Tun Dr Mahathir Mohamad has been criss-crossing the country telling his audience that Malaysia will go to the dogs if Datuk Seri Najib Tun Razak remains Prime Minister. Yes, those are his exact words – go to the dogs.
There’s still plenty of fire in his belly, like a dog with a bone on issues, although he called off a few functions last week, presumably because of health reasons.
On Friday night, he was admitted to the National Heart Institute. Guess he must be dog tired. He’s still a crowd puller and has the knack of explaining issues in simple language and in a low, calm voice, as opposed to the thunder and lightning approach favoured by his DAP partners.
His deadpan expressions and trademark sarcasm are enough to draw laughter and keep the crowds entertained. But he has been continuously dogged by the ghosts of his past. The palaces are in an unforgiving mood for what he has done previously, when he was at the helm for 22 years.
It was Dr Mahathir who launched the campaign to amend the Federal Constitution to remove the Sultans’ immunity in the 1990s.
Dr Mahathir has also been asked to return his DK (Darjah Kerabat Yang Amat Dihormati) title, the highest award in the state, which was conferred on him in 2002. The move by the Kelantan palace to revoke the Datukships of two top Parti Amanah Negara leaders from the state has sent ripples through political circles.
Amanah vice-president Husam Musa and his state chief, Wan Abdul Rahim Wan Abdullah, returned their titles to the palace several days ago after being instructed by the State Secretary’s office to do so.
In December, Dr Mahathir returned the two awards he received from the Selangor Sultan, a move believed to be related to the palace’s outrage over his remark on the Bugis, whom he describes as pirates, irking many, including several Sultans.
The chairman of Parti Pribumi Bersatu Malaysia (Pribumi) was the recipient of two medals of honour from then Selangor Sultan in 1978 and 2003. One of them was the Darjah Kebesaran Seri Paduka Mahkota Selangor (SPMS) (First Class).
Dr Mahathir reportedly told a Pakatan Harapan rally that Malaysia was being led by a prime minister who is a descendant of “Bugis pirates”.
That comment triggered outrage from the Johor Palace, Bugis community and associations in Malaysia, and even from some parts of Indonesia.
Selangor Ruler Sultan Sharafuddin Idris Shah was also incensed by Dr Mahathir’s remarks in an interview with The Star.
Last January, the Sultan of Johor said he was “deeply offended and hurt” by the political spin used by certain politicians against mainland Chinese investments in the state, saying if left unchecked, would drive away investors. A visibly upset Sultan Ibrahim Ibni Almarhum Sultan Iskandar singled out the nonagenarian for “putting political interests above Malaysian interests, particularly Johor”.
To put it simply, it appears that Dr Mahathir has run into serious problems with the powerful Rulers, and anyone who understands Malay politics will surely appreciate the relationship between the executive and the Rulers.
The Pakatan Harapan may feel that they should unleash our former PM since he was their top dog to best reach the Malay audience, but plans have run aground somewhat.
Politicians come and go, but Rulers remain, at least for longer than politicians. Rulers determine the laws, in many ways, and it would be foolish for a politician to take on these highly-respected royalty.
It will be hard for Dr Mahathir’s younger party colleagues to communicate with him – he comes from another generation all together. And as the adage goes, it’s hard to teach old dogs new tricks. He’s known to be stubborn and one who will doggedly talk about the issues of his choice.
The odd situation is that it is unlikely that any of the Pakatan Harapan leaders will come out openly to defend him. It’s a classic case of tucking their tails between their legs, with the whining kept private.
It’s truly the Year of The Dog. Let’s hope the GE will be called soon because most Malaysians just want to get it over and done with. We have already let the dogs out, and we hope to bring them home soon!
A happy Chinese New Year to all Malaysians celebrating. Gong Xi Fa Cai.
Wong Chun Wai began his career as a journalist in
Penang, and has served The Star for over 27 years in various capacities nd 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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Penang govt to blame, says Lau
PETALING JAYA: Barisan Nasional should not be blamed as it is DAP’s own doing that “sabotaged” the Penang undersea tunnel project, said Gerakan vice-president Datuk Dr Dominic Lau (pic).
He added it began when the DAP-led Penang government failed to provide feasibility reports on the project, which were supposed to be completed by April 2016.
“You missed the deadline and in October 2017, the special purpose vehicle (SPV) said there is no more urgency to complete the reports.
“Based on the original timeline, the first phase of the project was supposed to start construction in the first quarter of 2015 and completed by this year.
“As of now, this first phase has not even started construction,” he said in a statement yesterday.
Despite the multiple delays in the reports and the construction starting date, he said the Penang government did not appear to have penalised the SPV.
He said when the project was awarded, a statement was issued stating that shareholders of the SPV consortium are China Railway Construction Corporation (CRCC), Beijing Urban Construction Group (BUCG), Zenith Construction, Juteras Sdn Bhd and Sri Tinggi Sdn Bhd.
“But today, CRCC, BUCG and Sri Tinggi were no longer listed as shareholders while Juteras Sdn Bhd is listed as winding up – leaving only one (Zenith Construction) out of the four shareholders in the agreement.
“Despite a material change of the financial and technical strength promised during the award and what it is now, the Penang government still does not appear to want to cancel the project or penalise the SPV,” he said.
“Even five years after the contract was awarded, the SPV still only has paid-up capital of RM26.5mil – way below the RM381mil minimum paid-up capital required by the Penang government to deliver the project.
“Meanwhile, the SPV is on course to make billions in two property projects valued at RM800mil and RM15bil respectively,” he said.
Meanwhile, Barisan Nasional Strategic Communications deputy director Datuk Eric See-To said the agreement shown to the media by Penang Chief Minister Lim Guan Eng was different from the one MCA deputy president Datuk Seri Dr Wee Ka Siong said was not stamped.
The agreement shown by Lim in a press conference on Friday was between the Penang state government with Consortium Zenith-BUCG; and not between the state and CRCC.
Previously, the Penang state government had shown a copy of a letter of support from the CRCC to prove that it is a party to the SPV awarded to undertake the undersea tunnel project.
On Tuesday, Dr Wee’s statement noted that the Acknowledgement of Commitment signed by the state government with CRCC was not a legally binding document and was hence not stamped.
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.
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
Magistrate Ainna Sherina Saipolamin allowed the 62-year-old “Datuk Seri” to be held in custody until Jan 29.
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
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
Behind BJ Cove houses at Lintang Bukit Jambul 1 is an IJM Trehaus Project. Approximate Coordinates : 5°20’38.47″N,100°16′..
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.
Taken away: Officers escorting one of the men out of the courthouse in Putrajaya.
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.
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.
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
AFTER two Category 5 hurricanes (Harvey and Irma) hit the US in October, followed by Maria hitting Puerto Rico, no one can deny that natural disasters are devastating.
With three hurricanes costing an estimated US$385bil, with less than half insured, the poor are suffering the most because they cannot afford to rebuild as the rich.
This year alone, monsoon floods in Bangladesh, India and Nepal have left millions homeless. This year will therefore break all records as Munich Re-insurance data suggests that 2016 natural disaster losses were only US$175bil, already 28.6% higher than the 30 years (1986-2015) annual average of US$126bil.
But how much of these natural disasters are man-made?
Despite US President Trump being sceptical of climate change, the US Global Change Research Program Climate Science Report published this month concludes that “it is extremely likely that human activities, especially emissions of greenhouse gases, are the dominant cause of the observed warming since the mid-20th century”.
Carbon dioxide concentration already exceed 400 parts per million, last occurred about 3 million years ago, when both global average temperature and sea level were significantly higher than today. Roughly one third of carbon emission is due to residential heating/cooling, one third for transport and one third for industrial production.
Human activities on Mother Earth include over-consumption of natural resources, cutting down forests, polluting waters and excessive cultivation/development that caused desertification or soil erosion. You see this from warmer surface and oceanic temperatures; melting glaciers; diminishing snow cover; shrinking sea ice; rising sea levels; ocean acidification; and declining tree and fish stock.
Oceans warming up
Hurricanes are caused by oceans warming up, building energy and vapour levels that create freak typhoons, tornados and massive downpours. At the same time, droughts are also occurring with more frequency for longer.
Scientists estimate that global average sea level has risen by about 7-8 inches since 1900, with almost half that rise occurring since 1993. Everyday, we hear new extreme events, such as unusually heavy rainfall, heatwaves, large forest fires, floods or landslides.
Climate warming is most observable in the water-stressed Middle East and the North Africa/Sahel region, where rapid population growth created desertification, food shortages, civil conflicts and ultimately, outward migration towards cooler climates, especially Europe. This hot region accounts for 60% of global war casualties since 2000, with 10 million outward refugees. About 90% of the world’s refugees and asylum seekers come from four regions with half under the age of 18 years.
A 2016 World Bank report estimated that these water-stressed countries’ GDP could be reduced by up to 6%, with dire consequences on stability. Without water, industries cannot function, food cannot be cultivated and health can deteriorate due to disease from water-shortage and drought.
European estimates suggest that each refugee costs roughly US$11,600 per person to maintain and there are already one million trying to enter Europe last year. The OECD has classified countries such as Afghanistan, Central African Republic, Iraq, Somalia, Sudan, Syria and Yemen as extreme fragile.
The world is already reaching a critical turning point. If the Paris Climate Accord can be implemented, with or without the United States, there is some chance of averting further global warming.
But closer home, we are already witnessing the effects of climate change on our daily lives.
In 1972, Hong Kong experienced a devastating landslide near Po Shan Road in Mid-Levels, which caused 67 deaths and collapse of two buildings. One cause was unstable ground following heavy rainfall from Typhoon Rose eleven months prior to the incident.
This tragedy in densely populated Hong Kong resulted in rigorous slope protection and inspection of drains to ensure that these slips do not occur again. I lived near Po Shan Road and admired how Hong Kong engineers regularly inspected the slope protection measures and that the drains were always clear.
In 1993, the collapse of Highland Towers in Kuala Lumpur was partly attributed to the clearing of the hilltop above Highland Towers, which led to soil erosion and the weakening of the foundations. By the time the residents detected cracks in the buildings, it was already too late. Some of my personal friends were among the 48 persons who were killed in that collapse.
Last weekend, Penang (where I live) had the worst rainstorm and floods because we were hit by the tail end of strong winds from Typhoon Damrey, one of the strongest to hit Vietnam in 16 years, leaving 61 people dead. Driving along Penang Bridge, I can see that the continued hilltop developments in Penang are leaving soiled scars on the previously pristine landscape, I am reminded of Highland Towers and Po Shan incidents. Natural disasters are acts of god, but the size of their impact on human lives are completely within our control.
Soil erosion does not happen overnight, and require responsible developers and conscientious governments, as well as concerned citizens, to be continually vigilant that maintenance of roads and drains, including soil inspections, are serious business with serious consequences.
Modern technology can provide drones and inbuilt sensors that can detect whether erosion is reaching critical levels. Regular maintenance of drains and checks on stability of the soil, especially where there has been recent clearing of trees in steep slopes, will forewarn us all of impending accidents.
As cities are building more and more on hillsides subject to torrential rain, Penang should seek technical expertise from Hong Kong which has extensive expertise on the maintenance of steep hill slopes that are subject to typhoons and sudden rainfall.
Landslides are today used more in political terms than in real terms. The next time landslides happen, residents who watch daily the erosion of their natural environment will know who is really looking after their interests.
Becoming bald: A view of the clearing work seen at Bukit Relau which was visible from the Penang Bridge in November last year. GEORGE
Seeking solutions: Penang Forum member and soil expert Dr Kam Suan Pheng giving her views during the dialogue sessio
Speaking out: Penang Forum members protesting outside the CAP office in George Town. Don’t just make it about worker safety
https://youtu.be/QB45Q2_mOG0 Suspicious activity: A photo taken from Penang social activist Anil Netto’s blog showing an active
|Choong (in white) surveying the deforested hillslope next to Majestic Heights.|
PENANG MCA has raised concerns about the safety of the residents in Tingkat Paya Terubong 4, right behind the Majestic Heights flats
Its Bukit Gelugor deputy secretary Marvyy Choong said the deforested hill behind the flats, just a stone’s throw away from Block 1, was a time bomb.
“There are 12 blocks of 23-storey flats in Majestic Heights.
“I understand that many residents have already moved out, leaving only a few more, and we’re worried for their safety.
“The surrounding hills are going bald due to ongoing earthwork and the 12 blocks may all collapse during a landslide,” he told a press conference at the flats yesterday.
|Aishah looking out her window to the hillslope which is just a stone’s throw from her unit|
“We are not opposing the paired road project but we’re against high-rise projects in vulnerable areas that may endanger lives,” he said.
Choong said Jalan Paya Terubong was not safe as trees frequently fall during a downpour.
“It is also unsafe for heavy vehicles and they must be banned from using this road after the paired road is completed.”
Meanwhile, housewife Aishah Che Wan, 68, who is living at another apartment scheme near the same hill, said muddy water gushed down the hill on Saturday and Sunday.
“Some small stones damaged a few cars parked by the side of the road,” she said, adding that she now feared for the safety of her family.
“I hope that whoever is clearing the hill will take necessary safety measures to prevent any mishap,” she said. – Starmetro
Behind BJ Cove houses at Lintang Bukit Jambul 1 is an IJM Trehaus Project. Approximate Coordinates : 5°20’38.47″N,100°16′
Seeking solutions: Penang Forum member and soil expert Dr Kam Suan Pheng giving her views during the dialogue session themed ‘Penang Fl
GEORGE TOWN: Penang has tabled a higher deficit state Budget of RM740.5million for the next fiscal year of 2018. Chief Minister Lim Guan