8/14/2019 TheSun 2009-05-29 Page01 Pkfz Over to Macc
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by Giam Say Khoon andTim [email protected]
PETALING JAYA: Transport Minister DatukSeri Ong Tee Keat has
ordered the Port KlangAuthority (PKA) to lodge a report with the
Ma-laysian Anti-Corruption Commission (MACC)
today to initiate a probe based on the Port KlangFree Zone audit
report, which was made publicyesterday.
The 45-page report by PricewaterhouseCoopers(PwC) highlighted 20
issues for the PKA to dealwith, in connection with the project at
Pulau Indah,Selangor, where land and development costs startedoff
at RM1.957 billion in 2002 and steadily grew to
RM3.5 billion because of project variations.Interests on a
controversial Finance Ministry
soft loan of RM4.632 billion to help finance theproject will
push the bill to RM7.453 billion, andup to RM12.453 billion if
payments are furtherstaggered, the report said.
The strategic intent of the project was to trans-form Port Klang
into a national load centre andregional transshipment hub, it
said.
However, significant project costs, weakgovernance and weak
project management haveseverely undermined the viability of the
project.
It is imperative that PKA takes immediateaction to restructure
the Finance Ministrys softloan of RM4.632 billion to avoid a
potential defaultin 2012. The government would need to make
a concerted effort to turn the PKFZ into a viableventure.
Other highlights in the report: the powers and authority of PKA
are not welldefined and the cabinet was not alerted in a
timelymanner on PKAs inability to pay for the project outof its own
funds. the PKA board did not exercise oversight andadequate
governance over the implementation ofthe project in relation to key
agreements, variationorders, appointment of key project consultants
andacceptance of land without the contr actor complet-ing
infrastructure works.
Member of Audit Bureau of Circulations (Malaysia)
News withoutborders
No. 4769 PP 2644/12/2009 (023092)
FridayMay 29, 2009
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PKFZ: Over to MACC
Economy tocontract butlikely to bebetter in H2,says
NajibPUTRAJAYA: The economy will
contract to between -4.0% and-5.0% this year, Prime
MinisterDatuk Seri Najib Abdul Razak saidyesterday. However, it is
expectedto do better in the second half ofthe year.
In March, the government hadforecast Malaysias growth to
bebetween -1.0% and 1.0%.
Currently, there are early signsthat the economic stimulus
pack-ages are beginning to have positiveeffects, Najib told a media
briefingin his office.
This has further been supportedby higher commodity and
stockmarket prices as well as risinginvestor confidence.
With this, it is hoped that theeconomy will recover at the end
ofthe year, he said.
Although the fourth quarteris likely to be positive, the
overall
growth for the year is still negativebecause the first quarter
is nega-tive, and (because of) the expectednegative growth in the
secondquarter and slight negative growthin third quarter.
Najib, who is also the financeminister, said Malaysia is
alreadyin technical recession.
Our recovery depends on theworld recovery. We have to seewhat
happens in the United Statesand Europe. If they recover, we willbe
on track for growth, he said.
He said the sector which hadpulled the first quarter growthdown
was exports, which con-tracted by 25% as external demandplummeted
more than expected.Private investment was also downby 26%.
The worldwide foreign directinvestment (FDI) has shrunk. FDI
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SHARILAMIN/THESUN
Jaya supermarket collapsesA section of the old Jaya supermarket,
a landmark in Section 14, Petaling Jaya, which is being
demolished,collapsed yesterday evening, killing two workers and
trapping five others. Two others were pulled out of the rubble
alive. See Page 8
