MCA's relevance

The brickbats thrown at Donald Lim's call for a Perkasa-like Chinese Malaysian movement in recent days is well-deserved.

The brickbats thrown at Liow Tiong Lai's call for an RM1 billion further infusion of funds to Chinese-language schools, on the premise that it will win BN and MCA further support of the Chinese Malaysian voters, is also well-deserved.

Donald's premise

Donald's premise is that an ultra movement claiming to represent "rights" of the Chinese Malaysian community will catalyse the Chinese Malaysian community to rally around the MCA and, therefore, BN.

Donald's logic must have been founded on the perceived sex appeal of Ib and Perkasa.

There is, of course, no foundation to Donald's logic.

How a Vice President of the MCA can make such a call is beyond comprehension.

The Chinese Malaysian community has always been robust, rugged and resilient. It's hallmark is industriousness, adaptability and flexibility. In this regard, the community mirrors all Chinese communities in a global disapora.

If there are any "rights" that the Chinese Malaysians community craves for, it is the right to be left alone (especially from the taxman) and, the right NOT to see its hard-earned tax contributions frittered away by corrupt practices, favouritism and general wastages in the Government and its agencies.

In this sense, is the desire of the Chinese Malaysian community any different from that of any other Malaysian community?

This is the naked truth that Donald is in denial of or, worse still, that Donald fails to see at all.

I offer only one abbreviated acronym that Donald and the MCA needs to immediately deal with: PKFZ.

Deal with that one and, Donald and the MCA can talk turkey with the Chinese Malaysian community or, any other Malaysian community for that matter.

Tong Lai's premise

Tiong Lai's call for an additional RM1 billion funding for Chinese-language schools in Malaysia is wrongly premised. His purported belief is that such a move will garner more support for MCA and BN from the Chinese Malaysian community.

Does anyone actually, seriously believe that?

Again, I offer only one abbreviated acronym that Tiong Lai and the MCA needs to immediately deal with: PKFZ.

Regaining relevance

This will have to come later. Duty calls.... :(

Post March 8, 2008, the great socio-political and socio-economic issues in Malaysia have been laid bare. It does not take any effort to purchase any number of books that have spawn from that Great Wakeup Call.

To reconstruct and reposition itself, the MCA has to do what none of the BN components have been truly able to do to-date - to wake up from the state of denial.

If we ignore the school of thought that inferred that the Great Wakeup Call was due to the sheer attractiveness of Pakatan Rakyat, then, we are left with the other school of thought which inferred that the Great Wakeup Call was a warning shot by the Malaysian electorate over the bow of the BN supertanker.

Why did the electorate do that?

Why did a large proportion of the Semenanjung Malaysia electorate reject MCA and BN?

I am still puzzling as to whether any real post-mortem was done by MCA and its BN brethren. The operative word is "real".

That is why I say that the MCA and its BN brethren is still living in Egypt - a state of the Nile (sic) denial.

Perhaps the sarcastic moniker given by one Sinnathamby Rajaratnam of the Peoples Action Party, who contested and won the Bangsar parliamentary seat in 1964, is still apposite of the MCA. Certainly Tiong Lai seems to think so.

Rajaratnam said that the abbreviated name "MCA" meant "Money Changes All".

For completeness, he also said "UMNO" meant "U May Not Oppose".

He also said "MIC" meant "May I Come-in(?)".

Has anything changed since then?

More importantly, has anything changed since the Great Wakeup Call?

Ong Tee Keat vs The Malaysian Polyarchy-Corporatists

There is a need to consider Ong Tee Keat's reported lament that there were some forces collaborating in an attempt to stop him from disclosing PricewaterhouseCoopers' audit report on the PKFZ.

Ong is further quoted as saying that "The steps they take include threats on my personal safety as well as applying internal pressure in an attempt to stop me from disclosing the content of the report". It is further reported that, He (Ong) even said someone had delivered him a message through some "secret society brothers" saying, "If you're wiped out from this world some day, you should know why this has happened!".

Such a statement coming from a Cabinet Minister, a President of MCA, the second-largest component party of the ruling Barisan Nasional coalition, should raise alarm bells at the highest levels of government. One of their own, a member of the elite, is under siege.

One immediate question that springs to mind is whether Ong lodged a police report? And, if not, why not?

While waiting for further reactions from the besieged Ong, it is apposite to consider the bigger picture of what Ong has described.

The Malaysian Polyarchy-Corporatists
Professor Robert A. Dahl of Yale University coined the word polyarchy to describe a form of government where power is vested in a select few.
pix from here.
Dahl's colleague Charles Lindblom embellished the definition to include the view that no single, monolithic elite controls government and society, but rather a series of specialized elites compete and bargain with one another for control. It is this peaceful competition and compromise between elites in politics and the marketplace that drives free-market democracy and allows it to thrive.

However, Lindblom soon began to see the shortcomings of Polyarchy with regards to democratic governance. When certain groups of elites gain crucial advantages, become too successful and begin to collude with one another instead of compete, Polyarchy can easily turn into Corporatism which is a term used to describe a practice whereby a state, through the process of licensing and regulating officially-incorporated social, religious, economic, or popular organizations, effectively co-opts their leadership or circumscribes their ability to challenge state authority by establishing the state as the source of their legitimacy, as well as sometimes running them, either directly or indirectly through corporations.

pix from here.

This phenomenon is apparent in every country. It is difficult to articulate. But, in the Malaysian context, the several books by Bruce Gale and KS Jomo under many different titles will lend a good illustration of polyarchical and corporatist conduct in Malaysia Inc.

A sinister turn
What Ong has described suggests that the elite in Malaysia has a very sinister side that has chosen to manifest itself in the PKFZ episode.

Many will shrug their shoulders and say, "So, what else is new?" or, "That's stating the obvious". And, they would be correct.

But, that should not trivialise the fact that here we have Ong Tee Keat, Cabinet Minister and President of MCA, the second-largest component party within the ruling Barisan Nasional coalition stating baldly that he is being threatened by people who want the PKFZ matter hushed up.

So, in addition to the question that I have posed earlier about whether or, not, Ong has lodged a police report on the threats that he has received, we should also ask whether UMNO, MCA and the entire Barisan Nasional apparatus are prepared to put up with threats made to their leaders?

If the answer is "No!", then, will any concerted action be taken by the law enforcement agencies to bring the perpetrators to book on the criminal offence of threatening a person with the words, "If you're wiped out from this world some day, you should know why this has happened!".

Certainly, this disclosure by Ong points further to the very embedded rot that has set into the stratosphere of the Malaysian elite.

It is an indictment of 52 years of dominance by a ruling coalition that Ong and the MCA is so much a part of.
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Postscript:

Speaking of "secret society brothers", Sim Kwang Yang has just written another interesting piece in Malaysiakini on the phenomenon of the Malaysian underworld. His impulse was derived from YB Wee Choo Keong's allegation that certain gang members had special access to the office of a certain state executive councillor in Selangor.

Ronnie Liu do something about the street lights along Jalan Pelabuhan Utara

The last time I checked, Ronnie Liu is the ADUN for Selat Klang which pretty much covers that part of Port Klang that I'm complaining about. Yes, this is a complaint. And, I believe I am expressing what everyone who has the misfortune to drive along Jalan Pelabuhan Utara at night has to put up with.

This is only a representation. Pix from here.

I believe Ronnie Liu is also the Selangor State Exco in charge of local councils. So, he certainly has the power.

I believe that Jalan Pelabuhan Utara falls under the jurisdiction of the State and the Majlis Perbandaran Klang.

Why are key sections of Jalan Pelabuhan Utara between the Northport and West Port not properly lit at night? The street lamps don't work.

To be fair they weren't working when Khir Toyo was Mentri Besar. But, the point is that they still don't work.

All the offices and warehouses in Port Klang pay quit rent to the Selangor State Government and, they pay assessment to the Majlis Perbandaran Klang.

Container trucks race along Jalan Pelabuhan Utara alongside motorcycles. It is a matter of time before many more road fatalities happen along this road at night.

The poor condition of Jalan Pelabuhan Utara makes Malaysia's premier port as great an embarassment as the PKFZ issue.

PKFZ special task force

One observation that needs to be made in relation to the PKFZ "special task force set up to recommend to the government ways to correct the mistakes and pursue appropriate legal actions" is the inclusion of the two PwC officials.

Since PwC produced the special audit and made inferences and recommendations in a report submitted to PKA, PwC has taken a stand on record.

As such, the two PwC persons in the PKFZ special task force have an inherent conflict of interest in that they will be inclined to cling to the PwC report and defend it. At best, they should only be input resource participants, not full members of the task force.

Furthermore, what happens if they are drawn as parties to any litigation arising from the PwC report? Wouldn't their objectivity as members of the special task force be lost there and then? Would they defend themselves harder against allegations made against them compared with their obligations as members of the special task force.

This is something that needs to be examined if the PKFZ matter is to be dealt with without fear or favour.

Just to be sure, the observations here are purely on the fact that the special task force is intended to do specific matters, particularly, in anticipation of litigation. The two gentlemen from PwC are inestimable in their professional conduct. Of that, there is no doubt. But, saying that, does not cure the inherent conflict of interest that exists. That is why someone needs to address this issue.

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.

PKFZ audit report out tomorrow...finally

The Federal Cabinet has given the approval for the release the PwC audit report on PKFZ tomorrow.

PKFZ report update

It's rather interesting that Port Klang Authority chairman, Datuk Lee Hwa Beng, who was hospitalised for treatment for gall bladder stones last Friday needed to be temporarily discharged today in order to attend a PKA meeting tomorrow. It's just interesting.

That meeting will encompass a decision by PKA whether or, not, to furnish an indemnity to PwC for the contents of the PKFZ report.

The Malaysian Insider reported that PwC wants to be indemnified before it gives its permission for the confidential investigative report on PKFZ, which it had prepared for PKA, to be released to the public.

Given the gravity of the situation, one can understand the professionals wanting to be covered against liability.

But, get the report out as soon as possible, please.
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UPDATE 14th May 2009: Now the PKA doesn't want to issue an indemnity to PwC and needs a legal opinion. Read more here.

PKFZ prelude

The Sun Daily appears to have done a scoop on the impending release of the PwC report on PKFZ. You can read the report by the team of R. Nadeswaran and Terrence Fernandez here.

PKFZ report out in 1 week's time

I must congratulate the Minister of Transport for knuckling down on the process of releasing the PriceWaterhouseCoopers (PWC) report on PKFZ. In his OngTeeKeat blog he has written as follows:

I have decided to extend the services of Dato' Lee Hwa Beng as Port Klang Authority chairman, after his term of office expired on March 31, 2009. One of his key priorities now is to ensure the release of the PwC report on the Port Klang Free Zone and I have given him one week from today to do so.

I am made to understand that the PwC report is ready, and in keeping with my promise earlier, it should be made public in its entirety. I have pledged to ensure transparency on this issue and I intend to keep to my words.

Last year, I directed the Port Klang Authority to commission an independent and credible firm to look into PKFZ. The delay in completing the report is due to several technical issues, including the declassification of key Government documents related to the investigations.

Now that the report is ready, it is only natural that PKA, which commissioned the report, release the findings. After which, I contemplate submitting the report to the MACC and the Public Accounts Committee.

Well done, YB.

PKFZ saga continues

Ong Tee Keat, Minister of Transport isn't too pleased with The Edge which has done a cover feature on the PKFZ saga in its latest publication.

The important thing is to get the PriceWaterhouseCoopers report out as soon as possible.

PKFZ buck passes from Ong Tee Keat to PKA

The Transport Minister Datuk Seri Ong Tee Keat is now said to have pointed out that the release of details of an independent audit probe into the Port Klang Free Zone (PKFZ) fiasco now lies with the Port Klang Authority (PKA).

That sounds like a solid tai chi move of responsibility transference. Ip Man would be proud of such deft touches even if that is a most un-Wing Chun move.

pix from here.

Ong is quoted, probably a defensive justification of his responsibility transference, as saying that there is a need to seek the declassification of documents relevant to the investigation into the ballooned cost of the shipping area, which went from RM1.85 billion to RM4.6 billion.

Probably with a deadpan expression (I wasn't there, so I'm guessing), Ong is quoted as saying, “It is my duty to keep (the public) informed that we are serious and we (have) sought declassification of certain documents".

When journalists asked whether he would press for the report findings to be released earlier, Ong said the right party to ask would be the PKA. “You have to ask them,” he said, declining to take any more questions on the matter.

See what I mean?

The Edge Daily reported thus: Ong has been reluctant to release the report findings by auditing firm PricewaterhouseCoopers (PwC) since late last year. Several politicians and public figures have been implicated in this scandal, including former MCA President Tun Dr Ling Liong Sik and his predecessor Tan Sri Chan Kong Choy.

The PKFZ’s debts stem from the bonds issued by Kuala Dimensi, a government-linked company that the PKA awarded the rights to develop the free-trade zone. The company had been given letters of guarantee from the Transport Ministry to obtain funding for the project.

Questions linger over why the Transport Ministry had issued these letters allowing Kuala Dimensi to issue RM4.6 billion in bonds to cover its cost overruns, when the letters are normally authorized only by the Finance Ministry.

PKFZ is a 1,000-acre Free Commercial and Industrial Zone providing facilities for international cargo distribution and consolidation centre. It was modelled after the successful Jebel Ali Free Zone (Jafza) in Dubai.

The government and all its related entities must not only be transparent. Such transparency must be timely. This, with the greatest of respect, is snail's pace.

PKFZ: Where's the PriceWaterhouseCoopers report?

While digesting the contents of the RM60 billion second stimulus package, I am minded to call upon the Minister of Transport and President of MCA, Ong Tee Keat, to release the contents of the PriceWaterhouseCoopers report on PKFZ.

Where is the Report?

When will it be released?

PKFZ whitewash

After months of waiting the Malaysian public are informed by Ong Tee Keat, Minister of Transport, that the performance of the integrated commercial and industrial zone had improved since last March.

Malaysian Insider reported that the Minister told a press conference that lasted more than an hour that the occupancy rate, employment, investment status and cargo movement have increased since the change of management that took place in May.

He stressed that the review, which he had previously called a chronology of events, was not a financial audit but a statement of facts.

“My job is not to pass judgement but to enumerate what has been happening,” said Ong.

“This is entirely based on documents and official records that we have,” he added.

The Minister is also quoted as saying, “I still can remember when I first set foot in the area, people said this is a ghost town,” said Ong when elaborating on the success in increasing the number of employees in the PKFZ.

Ong however refused to blame his predecessors at the Transport Ministry.

“That is the question that only my predecessors can answer at that point of time,” said Ong.

“You are asking me to comment on my predecessor. This is, of course, his discretion at that point of time, perhaps due to whatever reasons or circumstances that he had at that material time. That is the question only my predecessor could answer at that material time,” Ong said.

“But if you were to ask me then of course I might have my own views ... I may not do it but it doesn’t mean what I say or what I choose is going to be the gospel truth.”

The Malaysian Insider also reminds us that the PKFZ project has been criticised because its development cost of less than RM2.5 billion had ballooned amid concerns about its ability to meet its debt obligations as well as that of the soft loan.

There were also questions about the possible kickbacks after it was disclosed that several individuals acquired the piece of land where the PKFZ now sits at RM3 per sq ft in 1999. The Port Klang Authority (PKA) later acquired the land at RM25 psf.

PKFZ ran into further problems when Jebel Ali Free Zone quit the management of the property.

And, now, going by what the Minister is saying everything is nice and peachy. PKFZ is no longer a ghost town. It is increasingly populated by humans.

Read also the great Ancient Mariner's take on this issue here.

I also hear that most hardware shops in the Klang Valley ran out of stock with white paint for the whitewash needed for the Minister's Press Conference...