Thursday, May 28, 2009

PKFZ audit report

If you are eager to get to the source, the PwC audit report can be accessed at PKA special website here.

You will need to provide your name and NRIC number, though.

A few names are mentioned...

Read PKFZ set to cost RM12.5b, only MACC can probe further .

It was reported that:

The (PwC) report highlighted 20 issues concerning the project’s management and governance by the PKA.

Among them were weak project management, cost overruns and conflicts of interests:

* PKA’s failure to alert the Cabinet in a timely manner of its inability to finance the project from its internal funds following an audit report by the Auditor-General in 2004 that noted that PKA did not have sufficient funds to finance the project;

* PKA’s failure to seek the advice of the Attorney-General while not complying with certain Finance Ministry regulations;

* Potential conflicts of interests arising from the involvement of parties who had prior association with either the land used to develop PKFZ or the turnkey developer, Kuala Dimensi Sdn Bhd (KDSB);

* Awarding of the PKFZ development contract to KDSB before a project masterplan was finalised;

* PKA’s projections that it would be in a cumulative cash deficit position in 2012 and would not be able to repay the Finance Ministry soft loan instalments on time;

* PKFZ having a low occupancy rate of 14% which is not generating sufficient revenue to cover its operating expenses;

* PKFZ Sdn Bhd incurring losses since its incorporation and having negative shareholder’s funds as at Sept 30 last year; and

* The possible breach of Treasury regulations when the Transport Ministry issued letters of support which could be construed as a guarantee that PKA would meet its obligations on a full and timely basis. Such letters should have been approved by the Finance Ministry.

3 comments:

Raison D'etre said...

Funny isn't it that we are allowed to read but not come to conclusions?

Anyway, The Edge Online articles on the above especially this one is near damning of the whole whacamacallit (for want of a conclusive conclusion :) )

God bless.

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