Police report on questionable RM1.81 b PKA/ Westports land deal

The Port Klang Free Zone Complex at Westport, Pulau Indah. Another ‘white elephant’ in the making?

Police report by Ronnie Liu Tian Khiew, DAP CEC Member and NGO Bureau Chief on the questionable RM1.81 billion PKA/Westports land deal and RM1.3 billion contract on Monday, 11 June 2007 at the PDRM Klang.

A. Buyer: Port Klang Authority (PKA)
B. Seller: Kuala Dimensi/ Pulau Indah Malay Fishermen Cooperatives
C. Players: Tun Dr Ling Liong Sik, Dauk Seri Dr Ting Chew Peh, Datuk Chan Kong Choy, Datuk Yap Pian Hon, Datuk Chor Chee Heong, Datuk Tiong King Sing, Datuk Rahman Palil, Datuk Azim Zabedi. Tan Sri Gnalingam.
D. Losers: Rakyat Malaysia

 The swampy land (saw the water?) that PKA paid RM1.81 billion for 1,000 acres (RM41.55 per square foot). The price is 200% higher than the market value, which was RM14 psf.

I was alerted by someone who has read my recent statement entitled “ Westports RM1 billion land deal: Why still no answer after police report made in December 2004?”, that the actual amount paid by Westports was not RM1 billion as reported earlier, but a whopping RM1.81 billion!

The figure was found in the 2005 AG Report according to a Business Times Singapore report dated 13 August 2005. To me, RM1 billion for 1,000 acres was unreasonably high, what more if the amount was RM1.81 bullion?

According to S Jayasankaran who filed the news report titled “AG highlights Port Klang’s financial dilemma”, MALAYSIA’S Port Klang Authority (PKA) cannot meet huge debt obligations of almost RM3 billion (S$1.32 billion) which will begin in 2007 without some serious government help, according to a report by the Auditor-General on the Authority’s financial statements for the year ended Dec 31, 2003.

According to the AG’s report, KPA agreed to purchase 1,000 acres of land near Westport from a private company for RM1.81 billion in November 2002. The plan, which has received federal government approval, was to create a national loading centre and a regional distribution hub along the lines of a similar distri-park in Dubai.

Earlier, it was reported that the deal valued the land at more than RM25 per square foot, which is more than 44% higher than the market value at that time (about RM14 psf). The AG described the price as something ‘calculated on a special-value basis’. What would the AG describe if the price was RM1.81 billion? Can anyone in the PKA or the Transport Ministry now tell us what exactly was “ calculated on a special-value basis”?

According to S Jayasankaran, the private company, which was unnamed in the AG’s report, is Kuala Dimensi, which is controlled by the family of Sarawak tycoon Tiong King Sing. Tiong is currently the Bintulu MP. Since 2002, it has been chaired by Azim Zabedi, who was named treasurer of the United Malays National Organisation (Umno) in 2004.

The AG’s report stated that KPA paid a 10 per cent down payment of RM108.5 million and agreed to pay the rest over 10 years beginning 2007 in installments of between RM130 million and RM179 million.

But that isn’t all. The report stated KPA signed another agreement with Kuala Dimensi to develop the land as a distribution hub for RM519 million in 2003.

Subsequently, the authority signed another supplementary agreement with Kuala Dimensi to develop the land but this time for RM1.3 billion. No explanation was given for the price increase according to the Business Times Singapore report. This is simply not proper and unacceptable. We want the police to investigate on these two questionable contracts between PKA and Kuala Dimensi.

 Aker Kvaerner, the only visible foreign company that operates from the Free Zone.

I have toured the Westports Free Zone last week and taken some pictures. The 512 units of godowns were completed for a long time but yet to start operation. The only visible foreign company that set its foot here is Aker Kvaerner from Norway. It appears to me that less than 100 acres of land were being utilized for the Free Zone, leaving much of the overpriced land vacant. The high-rise motorway linking the Westports and the Free Zone currently under construction is unnecessary and highly questionable.

 512 units of godown have been completed but yet to start operation. Why?

The report noted that a similar scheme of payment would be undertaken by KPA – namely, it would pay Kuala Dimensi a down payment of RM100 million, while the rest would be paid between 2007 and 2017 on a staggered basis. But the report stated that KPA did not have that kind of money.

I have made a police report on the scandalous PKA/ Westports RM1 billion land deal in December 2004, urging the police to instigate MCA leaders like Ling Liong Sik, Chan Kong Choy and Yap Pian Hon. Incidentally, Yap is now replaced by Chor Chee Heong in April this year. He was quoted by Merdekareview. Com that he has nothing to say about the questionable land deal.
More than two years have passed but nothing has come out of my police report. But now we were told that both the Westports and PKA were in deep financial problems. In fact, PKA is said to have incurred some RM3 billion in debts!

 Chor Chee Heong, the newly appointed PKA Chiarman also holds the position as a deputy chairman of Wijaya Global. This is clearly conflict of interest.

We also found out that Chor Chee Heong happens to sit on the board of Wijaya Global, a company linked to Wijaya Baru and Kuala Dimensi. This is a clear-cut case of conflict of interest!

Chor has to resign either as the Chairman of PKA or relinquish his post as the deputy chairman of Wijaya Global immediately.

/ Ronnie Liu Tian Khiew, DAP CEC member and NGO bureau chief

NOTE: I have just got back from the Klang police station. Chief Inspector Lawrence of the Commercial Crime Department was shocked to see the VIPs list implicated in my police report. Very frankly, he expressed his concern on whether his boss would allow him to do such an high-profile and sensitive (his word) case. He could only tell me who would be the IO after holding a discussion with his ASP boss. I was accompanied by Selangor DAP vice chairman Peter Tan and my special assistant P H Chang.

Tomorrow morning, we will be leading a group of jounalists and photographers from various newspapers to tour the Port Klang Free Zone.

8 Responses to “Police report on questionable RM1.81 b PKA/ Westports land deal”

  1. KSTAN Says:

    I hope that one of the MPs from the opposition will bring this up the matter in the next parliament Q&A session.

  2. ronnieliutiankhiew Says:

    dear kstan,
    I would approach the supremo MP i.e. Opposition Leader Sdr Lim Kit Siang to raise ‘hell’ in the next Parliamentary sessions. All those who were implicated owe we Malaysians a good explanation. Hold your breath!

  3. ronnieliutiankhiew Says:

    Would the police takes actions this time? Don’t ask me. I don’t have the answer. Our duty and responsility is to highlight the issue to the public and bring the case to the authority. It’s their duty and resposibility to investigate and charge those who were corrupt or abuse their powers and positions (if any). At the end of the day, the rakyat must decide what kind of govt leaders they should support.

  4. shenyeeaun Says:

    good luck

  5. KSTAN Says:

    Good!

  6. sampalee Says:

    When we update our fire detacting and warning system in the coming GE,make sure we install Ronnie and replace the defective and unreliable ones,even those marketed under dap brand

  7. Dr. Jude Akubuilo Says:

    I need to locate Azim Zabedi whom I saw last in 1983 in London. We were classmates for the Masters in Business Law Program. I will also like to locate Raymond Tzetu who is practising law in the region. Thanks for your assistance.

    Dr. Jude A. Akubuilo

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