Friday, August 24, 2007

MORE PICS & Video – PKFZ Bull Shit Explanation? Buy land with infrastructure Works? PKFZ–“Tax Free” Shopping Haven (Nilai3) for Excessive warehouses

MORE PICS & Video – PKFZ Bull Shit Explanation? Do you Buy land to include Infrastructure Works? Nilai3 for PKFZ – the Way out to Utilize the Excessive warehouse

ABOVE: Malaysiakini had the details H E R E on Aug 23 07 at 6.36. Contrast its details and those from the SUN with the glorified report from the STAR (24th Aug 07, below).

ABOVE: The opposition leader will raise the "mother of ALL Malaysian Bail-out Scandals" - the PKFZ Fiasco in Parliment

Opposition Leader Lim Kit Siang (ABOVE)said that he had given notice to speaker Ramli Ngah to move an urgent motion on the matter. He argued that Parliament is entitled to know whether past or present transport and finance ministers are responsible for wasting billions of ringgit of taxpayers money.

“If Ling Liong Sik (ABOVE) who was transport minister until 2003 was responsible for the scandal, then he should be arrested and prosecuted in court. If (present transport minister) Chan (Kong Choy) (BELOW) is responsible, then let Chan be charged for the RM4.6 billion negligence,” Lim said.

ABOVE: Transport Minsiter Chan K C is a troubled and harassed man today; who oversees PKFZ & PKA -both helmed by appointees of the Malaysian Chinese Association and the Bus Crash Fiasco

“If both Ling and Chan are both jointly responsible, let both be charged in courtwhich is the only way to ensure that Malaysians can celebrate the 50th Merdeka anniversary with some pride about our national integrity instead of having to hang our heads in shame

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Instead of wasting any more time, to make the PKFZ recoup some of the wasted money, convert this place to a "TAX FREE" SHOPPING Haven (like the Nila 3 in Negeri Sembilan, where hundreds of smaller warehouses were built and now almost fully utilized as a shopping destination attracting people far away). It will be the Klang Valley Shopping destination iF PRICES ARE CHEAPER THAN THE SHOPS.

The customs can do the necessary SALES & IMPORT tax on exit from Zone

ABOVE & BELOW: The PKFZ location of PKFZ in Westports

MORE PICS & Video – PKFZ Bull Shit Explanation? Do you Buy land to include Infrastructure Works? Nilai3 for PKFZ – the Way out to Utilize the Excessive warehouses

Transport Minister Chan Kong Choy and his subordinates once again evaded fielding questions on the Port Klang Free Zone (PKFZ) controversy. The minister was conspicuously absent from a press conference called Tranport Ministry at the PKFZ headquarters regarding the issue today. Other ministry officials also did a disappearing act, leaving PKFZ officials to distribute a five-page statement (see STAR for details)from the ministry.

ABOVE: General Manager Manager Chia Kon Leong who read out the statement on the "future prospect" of PKFZ

Unfortunately, the statement does little more than state some facts already known about the fiasco, fudge other facts, while completely ignoring a host of other important questions that have been raised with regards to the development project.

ABOVE: The details of the PKFZ - Precints 8, 6 7, 4 & 1 are Service land plots and all are locating on the fringes bordering the he PKFZ; all reclaimed from the swampy land and most probably not suitable for and building structures. There are 512 warehouse in Precinct 5 (purple colour)

Why this cost RM4.6bil; SUN; Terence Fernandez

ABOVE: The main office building and BELOW: The 4-STAR white hotel with the 2000 unoccupied covered parking bays on the right located in Precinct 5

KLANG (Aug 23, 2007): The Transport Ministry today responded to reports over the bailout of the Port Klang Free Zone (PKFZ) today, explaining how the project cost ballooned to an estimated RM4.6 billion. Although it did not answer all pertinent questions raised by theSun in earlier reports, the five-page statement partly attributed the huge cost to advice from the Jebel Ali Free Zone Authority (Jafza), which was managing the PKFZ until it decided to sever ties on July 18. "Initially, the project was to be completed in two phases on just 500 acres, with development cost estimated at RM400 million. "However, following advice from Jafza, the Port Klang Authority (PKA) developed the free zone in a single phase utilising 1,000 acres (250ha), at a total cost of RM1.845 billion," the statement said. (see table and more stories on Page 7) Other elements that pushed up the cost to an estimated RM4.632 billion were interest of 7.5% (on loan to buy the land, payable over 15 years), a 10% professional fee and a variation order capped at 20% (if effected). The statement confirmed reports that 250ha were bought from Kuala Dimensi Sdn Bhd (KDSB) at RM25 per sq ft for development of the free zone, although government valuers had estimated put it at about RM10 psf.

The ministry explained that the RM25 price tag included improvement works such as reclamation and irrigation works, constructing a road, bridge and street lights, water supply and payment to utility companies. Although the price tag was RM1.088 billion, the final cost would be RM1.807 billion considering that the payment would be made over 15 years, with interest at 7.5% per annum. As the cost was high, the ministry said the government had approved a loan to the PKA as the PKFZ was a project to help spur economic growth, create job opportunities and offer ancillary support services and business activities.

"Details of the loan are being ironed out."

On the fallout with Jafza, the ministry re-iterated the authority's press statement on July 18 that Jafza was looking at business opportunities where it could hold equity. Where the PKFZ was concerned, the PKA held 100% equity. "However, this does not affect future cooperation between Jafza and and PKA," it said, adding that the free zone has been in operation since Nov 1 last year and has 30 investors who pumped in RM725 million. The project was completed on Oct 31 last year, with additional works to be finished at the end of this year. The PKA will continue operating the free zone through its subsidiary, PKFZ Sdn Bhd. It said the PKA has established a one-stop committee to help investors to get speedy approvals, among others. It added that the PKA will embark on trade missions to woo investors, with the help of Mida/Matrade and foreign marketing firms to attract markets in Europe, China and India. "We are confident of a 80% occupancy in five years," the statement said.

= = == =and from the STAR
Friday August 24, 2007; By SHARIDAN M.ALI; STAR

Port Klang Free Zone targets 80% occupancy

PORT KLANG: The Port Klang Free Zone (PKFZ) management is confident of reaching 80% occupancy by 2012. General manager (business development) Chia Kon Leong said this would mean attracting 650 to 700 companies to invest in the 404ha PKFZ. To date, after 10 months in operation, the country’s first integrated free zone for commercial and industrial activities has already attracted 30 companies (see BELOW)with total investment of RM725mil.

ABOVE: One of the few visible investors (Aker Kvaerner, a German firm)who has taken up space & buildup facilities in PKFZ

Owned by the Port Klang Authority (PKA), PKFZ provides mixed facilities of open land, light industrial units and business complexes with amenities such as Customs Centre and other Government agencies' offices, trade offices and 24-hour security. “In 2010, PKFZ is expecting a total revenue of RM40mil and it would be a self-sustaining company by then,” he said. Chia said the target was achievable through a revamped business model with aggressive marketing strategies although Jafza International has pulled out from managing PKFZ. “We have allocated 20% of our total expenditure to promotion and marketing. PKFZ is expecting to spend RM12mil to RM16mil as working capital for the next three years,” he said. “PKFZ ideally wants to attract 70% foreign direct investments (FDIs). The rest will be local investors,” Chia told the media at a special briefing session following reports on the company’s financial problems. The Transport Ministry, in a statement, gave an assurance that PKFZ was an important national project and that the Government has agreed to provide a soft loan to PKA. The details are still being discussed. PKFZ has received Government support as it will increase the cargo volume at Port Klang – the national maritime gateway – generate economic growth, create job opportunities and encourage supporting services,” it said. The statement added that the Government respected Jafza International's change of policy and its decision to pull out of the agreement to manage PKFZ.

“Jafza withdrawal was due to its new policy to hold equity in the free zones it manages,” said the statement. The Transport Ministry is positive that PKA would continue to run PKFZ successfully. “PKA has formed a one-stop agency to help investors to get approval from the authorities as well as business consultancy. “PKA will actively participate in trade mission, briefings and exhibitions to attract more FDIs ,” it said. The Transport Ministry said the effort to market PKFZ would be assisted by Malaysian Industrial Development Authority, Malaysia External Trade Development Corporation and marketing firms in Holland, India and China. “This will realise the Government's mission in making PKFZ a regional distribution and trading hub,” it said.

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ABOVE & BELOW: Rows after Rows of empty warehouse, totalling 512 units lying idle in Precint 3
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ABOVE: A side view of the warehouse and BELOW: The rows facing each other
Follow Nila3 to utilise these warehouses

= = == = == = == and from Business Times
Klang scandal to delay plans for a central ports body?
Bill now likely only after next year's forecast GE

By S JAYASANKARAN IN KUALA LUMPUR ; Published August 23, 2007

AN oft-delayed parliamentary Bill to create a central authority for the regulation of Malaysia's ports is likely to be shelved until after the general elections, widely expected to be held early next year. Bailout? The PKA may get a loan from the government to prevent it from going bust. The delay, said industry executives, could have something to do with a scandal engulfing the RM4.6 billion (S$2 billion) Port Klang Free Zone. The plan to create a National Port Authority had been announced as far back as 12 years ago owing to the fact that Malaysia has 10 separate port authorities regulating as many as 14 ports.

But disagreement between the port authorities, terminal operators and the Ministry of Transport delayed the proceedings with various Bills passed around for approval and comment. Even so, the final draft was supposed to have come out this year but industry executives said that the matter had been shelved again. It isn't clear why the Bill has been delayed but the executives say that it might have to do with the growing scandal surrounding the
Port Klang Free Zone (PKFZ).

The Port Klang Authority (PKA), which contracted its development, saw its costs escalate to RM4.6 billion from an initial RM1.1 billion and is likely to get a soft loan from the government to prevent it from going bust. Even so, the port authority has said publicly - in the 2005 Auditor-General's Report - that it intends to defray some of those costs by getting them out of the National Port Authority; the national authority would have a lot more cash than the separate authorities, all of which are financially self-sustaining. From the magnitude of the publicity given to the PKFZ, any move that might be construed as hastening the formation of the National Port Authority could be politically sensitive, the executives said.

The Port Klang Free Zone fiasco is the biggest scandal to rock the three-year administration of Prime Minister Abdullah Ahmad Badawi and the continued publicity given it by some Malaysian media has put it firmly in the public eye. Even so, the coverage given the issue has largely been confined to one newspaper - The Sun - and reflects in part the political sensitivities surrounding the issue. The PKA and the Ministry of Transport, which oversees it, are both helmed by appointees of the Malaysian Chinese Association, or MCA, the second largest component party in the ruling National Front.

Meanwhile, The Star, the largest selling English newspaper in the country owned by the MCA, ignored the issue altogether. For its part, The Sun is majority owned by two ethnic Chinese businessmen and is considered relatively independent. Still, the publicity given to the debacle by The Sun has drawn attention. Lawmaker and Public Accounts Committee chairman Shahrir Samad said that he would convene a special hearing of the PAC to determine if the Klang Port Authority needed a bailout from the government. For its part, neither the government nor the PKA has said anything although BT has learnt that Mr Abdullah ordered Transport Minister Chan Kong Choy to brief local editors yesterday evening. It isn't clear what transpired.

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Port officials face graft probe
The troubled Port Klang Authority has racked up debts totalling RM4.6b

Published August 23, 2007, from Business Times
(KUALA LUMPUR) Malaysian authorities said yesterday they will investigate for possible corruption officials of the country's troubled port operator which has piled up over US$1 billion in debts.As the extent of Port Klang's debt problems filters out in the local financial press, there has also been widespread speculation of a possible bailout from the government of Prime Minister Abdullah Ahmad Badawi.

The bailout, if pushed through, could become the biggest in Malaysia's history, said Shahrir Samad, chairman of the government's powerful Public Accounts Committee. Mr Shahrir said the government's main economic agenda before the scandal broke out was its budget report due out in November. 'But (now) we must certainly look into this matter which seems very serious,' Mr Shahrir said. With mismanagement of funds appearing to be the case 'then we must speak to the relevant authorities of Port Klang and a full-scale investigation will be conducted', Mr Shahrir told AFP.

'It is up to the government when to allow the police and the Anti-Corruption Agency to take the matter even further,' he said. The issue remains 'politically sensitive', Mr Shahrir said, noting that Prime Minister Abdullah has repeatedly pledged transparency in all government dealings. Mr Abdullah, who is widely expected to call for general elections next year, has kept silent on the issue. The Port Klang Authority operates the 400-ha Port Klang Free Zone shipping area that opened in western Malaysia last year. I

t has racked up debts totalling RM4.6 billion (S$2 billion) and the management has been in disarray, reports said. The problem was further complicated when Dubai-based Jebel Ali Free Trade Zone Authority announced last month it was pulling out of a deal to manage the zone for 'strategic reasons'. The country's main opposition party, the Democratic Action Party, subsequently filed a police report seeking an investigation into the allegations of corruption that it said led to Port Klang's woes. Several government bailouts of state-linked prominent companies, including a bank and a steel firm, damaged public confidence in the 1990s. -- AFP

= = =Watch the Video Clip 1 min 30 s- PKFZ Rows after Rows of Unoccupied Blue Ware houses

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Anonymous suck-suck-sucker said...

Never ending parasites - both UMNO and their lapdogs, like MCA, simply love mega projects - build, build, build so that with limitless costs they can continue to siphon, suck, and get fatter and fatter.

Nothing serious will happen to them after people made their noises. Look at Zakaria, no sweat. Look at Ling LS, no sweat. Sama sama saja.

7:36 PM  

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