theSun | FRIDAY AUGUST 28 2009
speak up!
&ORLIMITEDTIMEONLY
PREVENTION, the adage goes, is bet-
ter than cure. If the wound could have
been prevented, wouldn’t it be better
than to have to go for treatment? If
impending signs of a financial catas-
trophe had already been made known,
wouldn’t it be less painful if it had
been acted upon instead of seeking
remedies and restitution? If reports of
a competent authority like the auditor-
general (A-G) had been acted upon,
could the present scenario have been
changed?
Flashback to the AG’s report in 2004:
This capital outlay for the development
of the (Port Klang Free Zone) project will
be advanced by the company and KPA
will pay RM100 million in 2004, with the
balance to be paid from 2007 until 2012,
an annual payment basis ranging from
RM53.89 million to RM230 million.
Copies of this report were tabled in
Parliament. They were made available
to all members of Parliament (MPs) and
the senate. Where was PKA going to get
the money? Didn’t anyone pick up the
A-G’s warning of an impending financial
disaster? Or was the report just viewed
as one of the many catalogues of shame
on government departments which are
published annually? While some MPs
made such a hue and cry over expen-
sive screw drivers and hydraulic jacks,
none raised a whimper on what has
become a RM12 billion disaster.
The bitter truth appeared in the
same report: ... the authority does not
have sufficient financial resources
to meet this obliga-
RM2,700m
RM2, 088m
RM1,957m
amount (including
Additional cost
Original estimate converting into a
for land and single phase
development RM131m
works
2003
2001/2002
Cure is preferred option
to prevention
tion. The KPA’s income before tax was
between RM500,000 and RM21.19
million, whilst income after tax was
between a deficit of RM1.52 million to
a surplus of RM16.31 million.
The harsh truth is this: The PKA was
at that time on the verge of insolvency!
Yet, no one saw the writing on the wall?
To add insult to injury, more agreements
running into a further several hundred
million ringgit were entered into AF-
TER this report was made public! How
could our lawmakers have watched
with their arms folded and allowed a
statutory body to continue spending
money knowing that it was on the
verge of bankruptcy? There is only one
plausible reason: “Don’t worry. Like all
other financial troubles, we can either
expect a hand-out or be bailed out by
the government.”
On Wednesday, Port Klang Au-
thority (PKA) chairman Datuk
RM3,184m
RM3,143m Other project costs
NADW contracted
e.g. professional
fees
amount (including RM41m
variation order &
ADW contracted
professional fees)
variation orders) RM443m
RM612m
2005 2006 2007
13
to corruption and mismanagement of
funds, what about the police, who too
received similar reports on possible
fraud four years ago? It is common for
politicians to go to the police at the
drop of a hat for political mileage, but
if a file had been opened on the PKFZ
at that time and statements recorded
from the principal officers; then at least,
it would have sent the message that
“Big Brother” was watching. Nothing
was done and today, the taxpayers pay
the cost of such indifference.
Lee Hwa Beng made yet another trip to Despite all the brouhaha on the PKFZ
the Malaysian Anti-Corruption Commis- scandals, there seem to be attempts
sion (MACC) with yet another dossier yet to prevent further revelations of the
on wrongdoings. But didn’t MACC’s litany of wrongdoings. Some have gone
predecessor, the Anti-Corruption to the extent of wanting the claims of
Agency (ACA) receive similar reports CitizenNades overcharging to be referred for arbitra-
as far back as 2005? The first report by R. Nadeswaran tion. Utter bunkum! While we have
was made in De- many competent people in this field,
cember 2004 and RM12,453m inaction, can we conclude that the ACA there can be no compromise when it
three subsequent did nothing or found no evidence of any comes to fraud and deception. Lee and
reports were Potential wrongdoing? the other members of the board owe
additional
made on charges interest costs if So, how come the task force set up a duty to the taxpayers whose money
of corruption, MOF soft loan by the PKA, headed by lawyer Vinayak has been (mis)used. While they are
abuse of power repayments are Pradhan found so much compelling studying suggestions that members of
staggered to
and misman- meet the evidence so as to necessitate a second the previous boards be held liable for
agement. By its Project’s report by Lee? Don’t forget, this task failing in their statutory and fiduciary
cashflows
RM5,000m
force had no powers of search and duties, they will have to face the con-
RM7,453m entry and neither did it have powers sequences if they decide to kau tim or
Interest costs on to compel banks and financial institu- find an unacceptable route to prevent
MOF soft loan tions to surrender bank statements and more embarrassing disclosures. And
RM2,506m
other documents. Yet, despite its limita- they should be reminded that they are
Interest costs
RM4,947m tions, the task force unearthed enough governed by the same rules that govern
RM3,931m documents to enable Lee to submit all directors.
Interest costs on
deferred payment to two reports – “disputable claims” and
KDSB
RM1,425m “possible conspiracy” to the MACC.
RM3,522m
Two weeks ago, the MACC an- R. Nadeswaran laments that some
Additional cost for nounced the setting up of a 30-member government agencies pay scant atten-
final account with
respect to DA
Land and task force to investigate the scandal. tion to complaints of misadministration,
RM338m
This should have been set up when it maladministration, and even fraud. The
development
first received the first report four years PKFZ fiasco has taught them not to
costs ago. It should have acted on media dismiss such reports as “yet another
RM3,522m reports since the commission has publicity-seeking stunt” because they
acknowledged that it acts on issues can come back to haunt them. He is
Source: Pricewa-
raised in the press. editor (special and investigative report-
2008 Capital cost incurred over time terhouseCoopers While it can be acknowledged that ing) at theSun. He can be reached at:
Report 2009 the MACC can only act on issues related citizen-nades@thesundaily.com.