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Extraordinary corruption revealed at Port Klang

Extraordinary corruption revealed at Port Klang

Kuala Lumpur: A PwC audit has revealed dramatic mismanagement, clandestine deals and conflict of interest at Malaysia's Port Klang. The damning disclosures in the audit report on the Port Klang Free Zone project, which authorities are trying to delay publishing, have rocked the port.
Transparency International-Malaysia president Datuk Paul Low called for prompt action with full force of the law against parties involved, adding an annulment was vital and corruption must be promptly and diligently investigated by the Malaysian Anti Corruption Commission (MACC).
The report said the audit by PricewaterhouseCoopers (PwC) had detailed a series of conflict of interest situations, among them:
Sementa Assemblyman Datuk Abdul Rahman Palil was both the Pulau Lumut Development Co-operative (KPPL) chairman and a Port Klang Authority (PKA) director in 2002 when the land for PKFZ was sold by KPPL to PKA;
Rashid Asari & Co, the legal firm retained by PKA, was also the same firm overseeing the inking of the sale and purchase agreemnet between KPPL and turnkey contractor Kuala Dimensi Sdn Bhd (KDSB). Its senior partner Datuk Abdul Rashid Asari was the deputy chief of Umno's Kapar division, where Tan Sri Onn Ismail is an exco member. Onn was the KPPL chairman and his son-in-law Faizal Abdullah, the then Kapar Umno division youth chief, is also the deputy CEO of Wijaya Baru Global Bhd (WBGB), the firm appointed by KDSB as the main subcontactor;
Perunding BE Sdn Bhd, appointed by PKA as the independent quantity surveyor for PKFZ, was also a quantity surveyor for KDSB;
PKA's board of directors were not advised that the chairman of PKA at one time was also the deputy chairman of WGBG;
KDSB directors Omar Latip and Idris Mat jani are also directors and shareholders of WBGB.
Low said the disclosure reveals "blatant abuses in the stewardship of public assets" and deals that reflected a lack of transparency, conflict of interests between the parties involved, involvement of politicians, the inflated prices of the transactions and questionable transactions.
The PwC report will be released soon. [07/05/09]


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