RM12.5b and counting

Citizens have been told to have confidence in the government. How can confidence ooze when with a stroke of a pen, millions of ringgit are signed away? Has all the time, effort and money from the state coffers to get to the bottom of one of the biggest financial scandals come to zilch?

R. Nadeswaran, The Sun

MORE than 10 years ago, a perilous journey had to be undertaken in public interest and safeguarding public money. Warnings were given about the obstacles that lay ahead – big names, big money and big trouble. But the call of duty reigned supreme.

When the first line was written, it had to be edited because it is not everyday that a government statutory body had become insolvent. Wouldn’t that provoke the powers that be to issue one denial after another and perhaps get their lawyers to send consecutive cease-and-desist letters?

Why should they? The truth hurts. After all, the best defence against defamation is the truth. Everyone knew that the Port Klang Authority (PKA) had been brought to its knees by getting involved in the Port Klang Free Zone (PKFZ) project.

What started as a RM2 billion project had ballooned and when all payments are finally settled, it would cost the taxpayers a whopping RM12.453 billion. These figures were not picked from thin air – they are from a comprehensive report submitted by PricewaterhouseCoopers.

From the report, a team of legal experts pointed out the malfeasances committed by some of those involved – from abuse of power to cheating. Even the lawyer acting in the land deal wore two hats – acting for the buyer and the seller.

The directors were not spared either – it was recommended that they be sued for failing in their fiduciary duties. Tan Sri Kong Cho Ha, who was transport minister, has now brought himself down to the role of the PKA chairman.

But what has emerged in the past few days is deafening – the PKA is withdrawing its civil suit against the contractor, Kuala Dimensi Sdn Bhd.

Some background: PKA filed the suit against KDSB on Sept 25, 2009, seeking rectification of the agreement signed on Nov 12, 2002, seeking a declaration that it should not be charged an interest of RM720 million on the balance purchase price of the land under the agreement and sought a refund of the interest paid to KDSB.

PKA contended that mistakes and fraud were involved in the agreement and that the value of each square foot of the land should be RM21 and not RM25. It also claimed that the purchase price was inclusive of interest as stated in the agreement and that it would be paid over 15 years.

On Feb 7, 2012, the Shah Alam High Court allowed KDSB’s application to strike out the suit but on June 25 that year, the Court of Appeal reinstated the suit and allowed the PKA’s appeal. Last year, the Federal Court refused to grant leave to KDSB to appeal.

So, what next? Will more cases and reports be withdrawn? Under Kong’s predecessor, Datuk Teh Kim Poh, the PKA withdrew its report to the Bar Disciplinary Committee over the lawyers’ conduct.

So, does anyone bother where our RM12.5 billion went? Is there no one to demand and get explanations for this strange twist of events?

Datuk Paul Low, who headed an independent inquiry into the affair, is now minister in the Prime Minister’s Department. He knows the details of the wrongdoings, the double-billings and double claims that were paid out.

As a member of the cabinet and as one charged with promulgating better systems and transparency and accountability in government, he shouldn’t be folding his arms and remaining silent.

At regular intervals, citizens have been told to have confidence in the government. How can confidence ooze when with a stroke of a pen, millions of ringgit are signed away? Has all the time, effort and money from the state coffers to get to the bottom of one of the biggest financial scandals come to zilch?

And RM720 million is not small money. We are talking about mega-bucks which if used properly, can rejuvenate our education system. Every right-thinking Malaysian has the onerous responsibility to demand some answers from leaders who had declared previously that “the government knows best”.

R. Nadeswaran spent years investigating the PKFZ scandal and authored a book on it. Like most Malaysians, he is disappointed with the recent turn of events. Comments: [email protected]