The document discusses the Port Klang Free Zone (PKFZ) scandal in Malaysia, focusing on the chairman Datuk Lee Hwa Beng's handling of the situation. While reports have been filed, five months later there have been no prosecutions. Lee has the power to compel further action through legal means like directing the police or seeking a court order, but has not done so, raising questions about his commitment to transparency and accountability. His reluctance to pursue the matter further, despite public outcry, suggests to some that the whole affair may amount to political theater with no real consequences for wrongdoing.
The document discusses the Port Klang Free Zone (PKFZ) scandal in Malaysia, focusing on the chairman Datuk Lee Hwa Beng's handling of the situation. While reports have been filed, five months later there have been no prosecutions. Lee has the power to compel further action through legal means like directing the police or seeking a court order, but has not done so, raising questions about his commitment to transparency and accountability. His reluctance to pursue the matter further, despite public outcry, suggests to some that the whole affair may amount to political theater with no real consequences for wrongdoing.
The document discusses the Port Klang Free Zone (PKFZ) scandal in Malaysia, focusing on the chairman Datuk Lee Hwa Beng's handling of the situation. While reports have been filed, five months later there have been no prosecutions. Lee has the power to compel further action through legal means like directing the police or seeking a court order, but has not done so, raising questions about his commitment to transparency and accountability. His reluctance to pursue the matter further, despite public outcry, suggests to some that the whole affair may amount to political theater with no real consequences for wrongdoing.
The document discusses the Port Klang Free Zone (PKFZ) scandal in Malaysia, focusing on the chairman Datuk Lee Hwa Beng's handling of the situation. While reports have been filed, five months later there have been no prosecutions. Lee has the power to compel further action through legal means like directing the police or seeking a court order, but has not done so, raising questions about his commitment to transparency and accountability. His reluctance to pursue the matter further, despite public outcry, suggests to some that the whole affair may amount to political theater with no real consequences for wrongdoing.
12 TELLING IT AS IT IS theSun | MONDAY OCTOBER 26 2009
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Budget 2010
No place for sentiments
CIVIL suits have been filed, where he made the report. evidence to back his claims. The vo- Prudent yet forward-looking reports to the police and The police, the CPC states, luminous report handed to the PKA the Malaysian Anti-Cor- shall give a status report by the legal task force, we have learnt GIVEN the simul- ment revenue, it is ruption Commission have on the investigation to the from our sources, has pin-pointed taneous need to the only Malaysian been made and they get informant (Lee) not later the activities that are deemed to have strengthen the gov- company on the the whole nation talking. than two weeks from the breached the laws. Why then is Lee ernment’s finances Fortune 500 list. Today, after almost five receipt of the request. remaining silent when public outcry and to upgrade the Those who mini- months since the Pricewa- But there is a caveat. is growing on the inaction? economy, Datuk Seri mise the importance terhouseCoopers report on If the report contains any Couldn’t Lee as the chairman and Najib Razak’s first of an honest and the shenanigans at the Port matter that is likely to ad- the custodian of public funds, walk the budget as prime competent presi- Klang Free Zone (PKFZ) versely affect the investiga- extra mile for the sake of the transpar- minister was reas- dent in ensuring and its owners – the Port suringly prudent Petronas remains CitizenNades tion or the prosecution of ency and accountability he has been yet refreshingly one of the best Klang Authority, nothing the offence, the police can trumpeting since he took office last by R. Nadeswaran forward-looking. managed Malaysian has materialised except refuse such a request. Are June? Why is he reluctant to ask the MakingSens one statement after another they hiding behind this? AG how much more time is needed? But will Budget government-owned 2010 persuade by Tan Siok Choo companies should by its chairman, Datuk Lee If the police are reluctant, When he makes reports, TV cam- Hwa Beng. he could seek help from the attorney eras and journalists follow him and many entrepre- look at the cheq- For one who has been closely general, who can direct the police report every word he says. But mak- neurs – local and foreign – to uered history of its Indonesian following the PKFZ scandal, it is not to furnish him with a detailed status ing the report and pretending that his step up investment in this coun- counterpart, Pertamina. difficult to disagree with detractors report. responsibility is finished is not accept- try? Or will governance issues Under president-director Gen who claim that this whole episode is Why is Lee not using the provisions able. He must make a concerted effort be a bigger determinant in their Ibnu Sutowo, Pertamina became a wayang, and nothing will happen to to keep the public informed of the to follow-up on his reports to ensure decision-making? a byword for corruption and those who plundered PKA’s coffers. I progress? But even if this fails, Lee and justice is done. Having come so far Involving the three Ps – Pet- mismanagement. In February am also mindful of the adage that one the PKA have an option – they can get and having enjoyed the support of the ronas, Proton, and the Port Klang 1975, the oil company defaulted is innocent until proven guilty and an order of mandamus to compel the public to clean up the PKA and the Free Zone (PKFZ) scandal – these on US$400 million in short- would be reluctant to point accusing AG to prosecute. In Latin, it means mess it has created, Lee must see an three governance issues could term term debt. This forced fingers. However, having obtained “we command”, and such an order is end to what he started. He owes it to spotlight whether economic the Indonesian Government to information that the three reports issued by a court to compel a govern- the taxpayers who funded the PKFZ. pragmatism will prevail over guarantee all Pertamina’s debts, commissioned by the PKA show ir- ment officer to perform mandatory or Having said that, why have Lee political considerations. then totalling US$10.5 billion. refutable evidence of wrongdoings purely ministerial duties correctly. and the current PKA board spared the Budget 2010 was notable According to research by by various parties has prompted this Legal dictionaries define manda- previous directors who failed in their for several reasons. First, the Wing Thye Woo and Anwar question: “If the people who produced mus as a “judicial remedy which is in duties? Shouldn’t the former directors, budget deficit is expected to Nasution, bailing out Pertamina these reports without access to bank the form of an order from a superior some of whom are in the same politi- fall from 7.4% of gross domestic caused Indonesia’s debt to ex- statements, copies of cheques and court to any government, subordinate cal party as Lee, be taken to task? He product estimated this year to port ratio to surge from 85% in vouchers could come with so much court, corporation or public author- must bear one thing in mind: There 5.6% next year, a forecast that 1974 to 114% the following year. stuff, what about the police and the ity to do or forbear from doing some can be no sentiments when it comes to stunned most economists. They estimate more than 80% of MACC which are empowered to enter, specific act which that body is obliged people’s money. If it was Lee’s money, Trimming the budget deficit Indonesia’s external borrowings search and seize documents?” under law to do or refrain from doing, the people will not question his discre- will help boost Malaysia’s rank- in 1975 and 1976 was caused by On receiving Lee’s report three and which is in the nature of public tion or the lack of it, but when RM12 ing in the World Economic Fo- Pertamina’s mismanagement. months ago, the MACC set up a 30- duty and in certain cases of a statutory billion has to come out of taxpayers’ rum’s Global Competitiveness Another governance issue member task force to investigate the duty.” However, it cannot be issued to pockets, he has to decide if he is the Index. Incidentally, another area is the never-ending saga of PKFZ issue. From what we have been compel an authority to do something chairman of the PKA or a party leader highlighted in the WEF report, a foreign partner for Proton. told, one of the three reports identify against statutory provision. trying defend his roost. the need to reduce street crime, Recent news reports indicate the culprits, the offences they had com- Case laws say that a command to People are fed up of reading about was also addressed through a German carmaker, Volkswagen mitted, complete with documentation. do an administrative action or not to the misuse of public funds. They want RM1 billion allocation for the (VW), is again in discussions with So, what is causing the delay? take a particular action must be sup- to see the culprits nailed. The PKA police. Proton about the possibility of It is no secret that the prerogative to plemented by legal rights. It must be cannot and must not be seen pander- Second, instead of adopting a strategic partnership and as- prosecute is the attorney general’s and a judicially enforceable and legally ing to a selected few. As said before, a scatter-shot approach, tax sembling cars at the national car those who attempted to force his hand protected right before one suffering a the PKFZ scandal and the actions incentives were crafted with company’s underused plant in have been told in no uncertain terms grievance can ask for a mandamus. taken against the perpetrators should precision. Five major areas were Tanjong Malim, Perak. by our courts that the prerogative can- A person can be said to be aggrieved be used as a template in similar cases. targeted in the budget: tourism, On several occasions, Proton not be challenged. only when he is denied a legal right by If the PKA falters on this, we can say in particular health tourism; in- has been close to reaching But Lee has a right to know the someone who has a legal duty to do goodbye to good governance. formation and communication an agreement with a foreign progress in the reports he had made. something and abstains from doing it. technologies; finance and Islamic partner, including VW. Despite Section 107A of the Criminal Proce- Lee and the PKA may not want to R. Nadeswaran makes no bones about banking, halal activities and Proton’s need for a foreign dure Code states any person who has offend the AG but the public are clam- wanting to see the people who stole green technology industries. partner to expand its markets given information may request for a ouring for the culprits to be brought to public money behind bars. He is editor Third, several budget and enhance its technology, past report on the status of the investiga- book. If Lee had chosen to name them (special and investigative reporting) at proposals could accelerate negotiations failed due to con- tion of the offence complained of in in his police report, he must have done theSun. He can be reached at: citizen- Malaysia’s shift towards a cern about a foreigner becoming his information from the police station so on the basis that he has enough nades@thesundaily.com technology-rich economy. These a shareholder in the national car include establishing a National company. For VW, will there be Innovation Centre, a RM11.3 a repeat performance or will letter letters@thesundaily.com billion commitment to expedite economic necessity prevail? implementation of high speed Yet another governance is- broadband and tax breaks for sue is the PKFZ scandal. Despite green buildings. several high-profile investiga- Don’t block public roads A bold initiative is the pro- posed 15% income tax rate for tions, to date, no one has been charged with wrongdoing. If I AGREE with “Safe cities, not gated enclaves” foreigners and locals living and PKFZ becomes yet another (LocalCounsel, Oct 20). Dr Goh Ban Lee was kind working in knowledge indus- Malaysian fault-free corruption to interpret the boom gates, cylindrical drums and tries in Iskandar Malaysia – a scandal, this is a continuing guards to be just “unfriendly” signs. proposed rate well below that extravagance that Malaysia can Living in a gated enclave in USJ11, feels like in Singapore and one percent- ill afford. living in an internment camp. Most roads are not age point less than Hongkong’s From an economic per- only blocked but entire areas are fenced up. So 16%. Traditionally, Hongkong is spective, corruption breeds visitors should not be offended by the unwelcome the East Asian benchmark of a inefficiency, escalates costs and display because even residents have no free low tax regime. diverts government spending access within the neighbourhood. Subang Jaya But will these fiscal offerings to perpetrators’ pockets and Municipal Council responds to complaints with in Budget 2010 revive private bailouts. For example, some “Sedang dibincangan” and “tiada dapat keputusan investment sufficiently to be- investigations suggest PKFZ’s muktamad”. come a catalyst for Malaysia’s costs could balloon to RM12 The Housing and Local Government Ministry economic growth? From 33% of billion – an amount equal to and local councils are relegating their responsibil- GDP in 1997, private investment Budget 2010’s total develop- ity to ensure safe living. Allowing residents to take is expected to tumble to an es- ment expenditure on education matters into their own hands and setting up illegal timated 9.5% of GDP this year, with RM1 billion to spare. road blocks, is sanctioning a vigilante society. “We data from the Economic Report In short, given the govern- can’t help you, so you help yourself” appears to 2009-2010 shows. ment’s need to reduce its budget be the ministry’s message. Or will large numbers of en- deficit, a tough stance against I dream of when I can take shortcuts to avoid trepreneurs withhold investing corruption is both a moral Subang Jaya’s infamous jam and driving directly pending the outcome of three imperative and an economic to my doorstep instead of making a long detour. governance issues that could exigency. I lament the wasted 30 years earning a living to highlight Malaysian policymak- create a home, which is slowly becoming more ers’ priorities? Opinions expressed in this like a prison. Most of all, I mourn the erosion of my Top of the list is the impend- article are the personal views of rights as a citizen to have free access to all public ing retirement of Tan Sri Hassan the writer and should not be at- roads, particularly the road leading to my home. Merican, president of Petronas, tributed to any organisation she The authorities must act now. next February. Not only is is connected with. She can be Petronas one of the biggest contacted at siokchoo.nsamail@ Jessica contributors to federal govern- gmail.com Subang Jaya