A gem from Wong Sulong
The man talks sense as he says the most likely to severely feel the pinch of the 12% increased electricity tariff are the middle-class and lower-middle-class in the urban centres whose household incomes are between RM3,000 and RM7,000 a month.
More so, when you live in Kuala Lumpur or the Klang Valley, and have two school-going children with a housing or car loan to pay off. Interest rates are rising, and the family has to contend with higher petrol prices while cost of basic foodstuff has risen significantly. "Eating in fancy restaurants – even once a month – is quite out of the question, and now the hawkers are also raising prices to the tune of 30% to 40%".
So, no matter if a family comes within the 60% who the government claims do not have to pay anything extra. Because, as Wong Sulong says, they, like all others, will be paying more for goods as producers will be passing on their increased costs to consumers.
So, what can be done?
The Government has advised the rakyat to change their lifestyle. And the rakyat will have to change their lifestyle. No choice ma?
And its here that Wong wants the power-that-be to watch out for the political fallout. Quote:
But there is also a lot the GOVERNMENT can do.
First and foremost, cut down the wastage and crack down on corruption.
People are not stupid. They are prepared to sacrifice and tighten their belts if such measures are necessary – for their own good and that of the nation. [...]
But they also expect the Government to deliver... given the current circumstances when many of the rakyat are feeling the pain, they expect the Government to deliver more.
A ringgit spent by the Government must result in at least one ringgit in value to the collective wealth of the nation, not 80 sen or 60 sen.
Recently, we have read horror stories of big projects being delayed for years and years, with the resultant hefty cost overruns.
The Kuching prison and the Matrade building in Kuala Lumpur are good examples.
Taxpayers are made to pay for the negligence, mismanagement or even possibly corruption of a few.
This is what they cannot tolerate, and with new channels of communication at their disposal (the Internet, blogs, SMS) they are starting to voice their anger and are demanding for accountability and action.
Wong calls for action, and action fast. "Don’t wait until people have had enough," he added.
It's a down-to-earth Op-Ed though Wong has avoided hammering the Big Devil.
Comments
YES Jeff. A GEM indeed from Mr. Wong Sulong. When (or IF?) the govt acts on the wastage and corruption, it will be the good news to counter-balance the bad news we're getting everyday. So far it seems to be only bad news we've got. Wish they'd call the GE tomorrow...
Posted by: LC Teh
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May 26, 2006 12:47 PM
Jee:
You call that a "gem"?
Art thou serious? Or jest pulling some kaki?
To me, it's coal.
This GEIC was parising all the Corporates sky-high, dropping their names in his Comments where j\he goes against all journalistic norms, repeating I, I, I ...ad nauseum, and dropping names preixing Tan Si dan Latuk..., Then you know, I know, every man in the street knows where WONG SL's bread is buttered.
And you call that a gem.
Well you did redress about him not "hammering the Big Devils" -- for this closing discerning line, UI'll Xcuse thee for momentary lapse in memory.
Don't people remember this ong guy was singing the former PM, also former Proton's CEO -- both the pwerfool Ms, when they were in POWER.
The suffering RM4,000-7000 folks, come on Jeff -- it is more the "majority" RM1,000-RM3,000 rakat who pay the price most -- Monnlighting on 2nd/3rd hjobs to get by.
Let me state in Wong SL's face what TNB's biggest problem is -- but the newspapers GEICs, the TNB bosses and their crony Ministers, ex-Ministers don't lnow, or don't want to know, or pretend not to know!
TNB sees us Consumers as Slaves;
TNB sees IPPs as their Masters. THat's Da Problem uno numero.:(
Posted by: desiderata
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May 26, 2006 01:28 PM
An extinct middleclass is their goal Jeffery. Easier to control the masses if said masses are poor see.
Here’s Gunnfan’s 3 step plan to S.O.S.:
1. Join Gerakan and get involved
2. Vote for Gerakan
3. Rule as a truly muhibbah party
The other, let’s not mince our words here, racist component parties will quake in their shoes.
It’ll be hard. But anything worth having is.
I’m sure there be the usual negative comments on Gerakan, but do the naysayers have a better alternative? Any alternative?
- Gunnfan
PS Please don’t even bother bringin up Keadilan (for one man).
Posted by: Gunnfan
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May 26, 2006 01:39 PM
Jeff,
A gem? I beg to differ. WSL merely states the obvious and a column to "voice" the obvious in hope to buy back some credibility or whatever that is left in him. Sometimes I do enjoy reading his column, he is a pretty articulate writer. Period.
Gunnfan,
You must be joking. Vote for the party whose Leader spews more saliva than he does facts when he talks? What can he do? Toe the line on our behalf? Pays our power bills? Pays for our char koay teow? Any sane and fair minded Malaysians today would have had and seen enough garbage in the local political scene in the last 2-5 years that would take a lifetime to digest, in fact some small "eaters" are already nauseating.
Posted by: Grengo01
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May 26, 2006 02:55 PM
It does not make a whole lot of sense when LKY said he would be negotiating with the IPPs to lower their charges to TNB after having raised the electricity tariff for consumers by 12%. First and foremost, all negotiations and effort should have been exhausted in reducing the cost of electricity distribution to the public before raising the tariffs, which is irreversible. Why negotiate after increasing the tariff? TNB revenue will increase by RM1.5 billion from this increase and if negotiations with the IPPs are successful, it will only add to the coffers of TNB. Where does the public gain from this negotiation? Worst off, TNB will have a prolonged contract to purchase from the IPPs. Heads or tails, the IPPs and TNB win, the public loses.
"The IPP agreements were based on production needs rather than demand, which has resulted in the electricity reserve margins reaching almost 40%" said LKY. This 40% will go to waste if unused. If this contract cannot be renegotiated to reduce the capacity charge, why raise tariffs with the public paying higher charges and the 40% excess problem still left unresolved? Why can't TNB offer rebates to encourage more usage and in the event helping to increase TNB revenue and using up the 40% reserve?
To rub salt into the wound our Minister says "We have engaged a consultant to review the financial and technical performance of IPPs with a view to reducing the capacity payment. The details are being worked out by the Energy Commission, and a report is expected to be submitted to the govt. for consideration. We will negotiate with the IPPs. We will offer them a future if they are willing to help with the present problems". Question is, why were these actions not caried out before the decision to raise the tariff? For whose benefit is he negotiating for? What has his Ministry been doing all this while? And what is he doing about the inefficiences of TNB? Do you think this Minister has done his job or not? I am sure NOT.
Posted by: chance2speak
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May 26, 2006 02:56 PM
Gunnfan's comment has me LMAO!!!!!! Ya, lets vote for the voiceless conscience and things will definitely change for the better. Nevermind that they are part of the same mob thats gotten us to this wonderful paradise we are now in.
Just a little more than 20 years ago, I was on a flight with a young politician. He was well educated, Phd (not from our top 200 world ranking uni) and seemingly full of idealism. We had a long chat during the flight where he told me about how we have to fight for changes from within and thats why he was a first term MP for Gerakan. Now more than 20 years later, what has he got to show for his commitment? Yes, he's now a Chief Minister who by the way was abused in the media by a bankrupt councillor (oh, sorry, pending appeal, so semua ok). Not even a high level politikus, a mere division (branch?) chairman but from the party that can do, say hear, see no wrong. Yes, maybe some should try Gunnfan's suggestion and see where it brings them after 20 years.
Posted by: kimmy
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May 26, 2006 03:08 PM
Ha ha ha.. you can talk... obviously it DO NOT affect u because you are drawing MORE than RM20,000 a month and that NOT including what ever 7 or 8 months bonuses The Star pay out every year! Wanna look like a hero... sorry lah!
Posted by: cyleow
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May 26, 2006 04:22 PM
It is great to see the public blaming the Government for all the ills of the country. Are not the citizens guilty to some extent for bringing about the current state of affairs in Malaysia? Are some members of the public so so very innocent? Belligerence, grandiose & recalcitrance has always been a key attribute of part of our Malaysian society.
We as citizens have to accept our responsibilities & play a vital constructive role in building our Nation. We cannot keep passing the buck to the Government & Bumiputras [ JEFF OOI says: Stick to my blog topic and you are warned -- DON'T PREACH YOUR SERMON IN COLLISION WITH MY ORIGINAL CONTExT. Where did I mention the Bumiputra factor here? One price hike and all kena! ] for all our problems - where has all the esteemed talk of 'muhibbah' & 'tolerance' evaporated to?
Guess Life is not going to be a bed of Roses - for some at least!
Spoon feeding has to end someday ain't it?
Posted by: bnaipal
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May 26, 2006 04:44 PM
Fact is we are being made to pay for air..that is what it is with the over capacity which we and TNB don't need and the IPPs also don't produce...but because it is there...TNB pays to the IPPs and they then load it on to us. And since there is already so much over-capacity and we don't need any more power producers can TNB now cancel their contract with or their intention to buy from Tanjung Bin and Jimah which are yet to be commissioned? After all since we are in the mood to cancel anything and everything....like th crooked bridge for instance, why not cancel this too?
I think the question has to be posed to Mahathir..and maybe he can now be the people's champion!!! After all it seems like these days only when he complains does the government also give some kind of response..and in his case he can also rebutt..but as for us...we only get the boot!
Jimah
Posted by: Observer
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May 26, 2006 05:31 PM
We are paying for past mistakes of the government. Over expansion for growth and optimism in good times as the privatisation and the birth of IPPs happened during the boom era.
This goes down to poor planning and it is no fault of the IPPs. They are mainly producing electricity according the the requirements of the government.
There is only one way to go which is forward! We should just go for growth and fix the leakages.
Posted by: penangboy
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May 26, 2006 05:47 PM
i can relate to this article as being a gem.
There is so much unworthwhile articles out in our main media, that finding some truth amidst spins, are by comparison a gem when others are mere stones.
Points to Wong Sulong for bringing up the thoughts of the rakyat. Yes, we are willing to change our lifestyle, its inevitable. but then will those at the top change, too.
Why only the rakyat must change?
In the midst of all this, there is no hero for us to look up to, no "kepimpinan melalui teladan" Where is the change from top that they have been telling us to do?
case at hand: at least nik aziz preaches his words by living humbly. can any other minister/policians show the same?
basically, its "do what we told you to, not as we do" mentality that the rakyat are ordered to live by.
Posted by: holiday
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May 26, 2006 06:22 PM
This is the price we have to pay for an inefficient government whose only administrative yardstick for implementation of its projects is whether its budget allocation has been spent. So all these years they've been patting themselves on the back for development projects they thought were implemented because the money is gone.
Now years down the line, they realise that they've been had, but they still have to put on a brave front.
Posted by: daniel
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May 26, 2006 06:41 PM
I believe members of the public are fed-up with price increase not so much because of the economic factors like petroleum increases but rather the excesses and inefficiencies which has not be rectified year-in-year out. The examples just goes on from:
i) Excessive expenditures on glamour projects by many local councils and Fed Government (many examples cited by Auditor General)
ii) Failure to collect student loans and other loans (many examples cited by AG)
iii) Using EPF funds as a lender of last resort
iv)Allowing IPPs, Toll-Collectors, Taxi franchise, licensing bodies etc. to continue to overcharge the public rather than allow free and open competition
And the list goes on....
Until and unless the public sees GENUINE effort to rectify the above as an example, any action taken by the Government will not be seen as in the interest of public.
Posted by: clk
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May 26, 2006 07:33 PM
//And the list goes on..//
clk,save your time and effort as it's gonna be an endless list.
Posted by: teh-o
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May 26, 2006 08:29 PM
Gem or no gem, the underlying discourse is the frustration and grouses that the people have to face with the increase in tariffs. The chain effect is tremendous. Everything is going up in prices. Life is becoming harder. The gap between the haves and have-nots is widening. There is no racial bias as it affects all alike. The supply chain is saddled with wastefulness, corruption, incompetence and politicking.
If this trend continues, there will be more poverty as the people will be burdened with trying to make ends meet! We are marching from folly to folly without concrete plan to arrest the trend. Yes, the simplest explanation is to show the chart comparing with the pricing of countries around and pride and console ourselves as still the cheapest if not the lowest increase in pricing. There is no consolation that it took TNB some 10 years to seek an increase and go on to praise the current management for the strategy adopted to get the government to increase tariffs by 12%.
Be very frank and come clean why the need to increase by such a margin. Various explanations have been given such as the all-win situation for the IPPs which contribuited to the present predicament.... what about the fuel cost such as the price of coal used to fire the boilers/equipment to generate electricity. Talk to those in the energy supply sector, you will hear horrible stories of how turfs are being divided so that when the coal finally reaches the station, the price would have increased by a few percentage point! We have been told that TNB owned coal fields in Kalimantan and the pit price is no more than USD$10 for those who know the trade and how can coal price go up so much reaching the station generating electricity. This is just one example.
Yes, more need to be done to ameliorate the situation. Now we have people speaking out exhibiting their anger. It is better to pay heed rather than let the situation deteriorate!
Posted by: peterpan
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May 26, 2006 08:29 PM
Keeping in 'Context'& after being 'WARNED' (eeks!) - Siapa rasa cabai dialah yang tahu pedasnya!
All the worlds a stage?
Posted by: bnaipal
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May 26, 2006 09:09 PM
I tell you why it’s no gem. I read the Star but I skip almost all local news. It’s not worth my time. The truth is in this line – “This is what they cannot tolerate, and with new channels of communication at their disposal (the Internet, blogs, SMS) they are starting to voice their anger and are demanding for accountability and action”.
I don’t think I’m alone in choosing what I read after years of disappointment on how main stream papers are written to water down issues or to cover at certain angles. So, every time I come across such ‘gem’ is like an attempt to draw readers back to their ‘moderated’ views. The powerful knows the next GE will be closely fought using ‘cyber mind-war’. Not surprise if there will be some ruling for blogging when the time comes.
A real gem is like a diamond. Transparent and unwaveringly strong but yet reflect the shining truth.
Posted by: 3rd Generation
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May 26, 2006 10:19 PM
I'm terribly saddened by the fact that everyone of us is heavily burdened by the increased cost of the daily necessities, especially those who work the hell out of them to earn a living - including me.
Do you guys remember that the petrol price was raised not long ago??? the stupid hoo-ha of the "Scenic" bridge issue??? the xxxxing proton, MAS??? the xxxxing balak issue??? the "fighter" jet issue which can't used in battle - BUY FOR WAT - BUY FOR DEFENCE OF THE DIGNITY OF MALAYSIAN??? MRR2 crack??? WTF? How much monies have been wasted in these scenarios. Did we see anyone from the government bear any of the responsibilities???? oh crap....i have a feeling that these stuff will go non stop. Did anyone feel that it's getting worse and worse and WORSE???
Uh... When time is tough, ppl will find target to flame. Mind you, if there's any hike of prices, say water, and it triggers some of the maniacs in the country, it's possible that you will kena. But the sad thing is, by tat time, you guys will fly away and the poor citizen will be left alone with the desperate maniacs. Do you want this? SO PLS FIND A WAY TO STOP CORRUPTION, HAVE A TRANSPARENT SYSTEM IN WATEVER YOU DO, HAVE A REWARD-PUNISH SYSTEM IN PLACE, MAKE THOSE WHO SHOULD BE RESPONSIBLE BE RESPONSIBLE. Please be fair. I believe there's a heaven for us and a hell waiting for you.
P/S: MY stock tips: BUY COMPANIES WHICH HAVE ANYTHING TO DO WITH THE WATER SUPPLY OF OUR COUNTRY! This is the last thing which price is yet to be adjusted, correct me if i were wrong.
Posted by: whling
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May 26, 2006 10:28 PM
I think the govt should not have privatised TNB in the first place. A private entity only has it's bottom line at heart not the people's. Worse still is when that private entity is connected to the ruling party as in the case of PLUS. They can then raise rates with impunity. Our country's privatisation has gone horribly wrong for the people and there's very little we can do about it.
Posted by: Jan
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May 26, 2006 11:09 PM
Well actually our Govt could have allowed TNB to operate Broadband over powerline and hence allowing them other revenue stream (more profit) and us another bb alternative
Posted by: rw
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May 26, 2006 11:25 PM
No matter what Wong Sulong wrote, he still wrote it in the typical Star condescending manner. What did he mean when he said, "In every major price rise – such as the recent 30 sen petrol increase and the electricity tariffs – the Government has worked hard to find measures to insulate the lower-income groups from the full impact of these price increases." Teh tarik, roti canai, chee cheong fun, char kway teow, nasi lemak - all have gone up from 10 to 50 sens and you call this helping the lower income group? What happened to the "taking actions against traders who increase their prices" warning that was issued in the early days following the fuel price increase? Can he also defined what he meant by the government "working hard"?
Next, he wrote "The Pak Lah administration has done a lot and that’s to be commended." Don't you think the words "a lot" is rather overstated? Eversince he took office, I don't believe anything has been done at all. The country is like a ship sailing rudderless. All we have been getting are bad news and more bad news, and I sincerely hope that this will carry on until the next GE.
Posted by: William D
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May 27, 2006 07:44 AM
all this whining does not help.... show your displeasure at the ballot box.. my concience is clear... done my part
Posted by: wacayalu
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May 27, 2006 09:23 AM
This is a mathematically incorrect type of saving program. The more you save power, a higher rate you are likely to pay in the future because TNB has to keep on compensating the excess power capacity which is partly saved by the consumers of the IPPs.
Only Boleh land leaders could think out such a negotiation!
Posted by: Kingkong
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May 27, 2006 01:35 PM
Grengo01,
I hear you.
Gerakan is not going to change overnight and needs new blood……. and LKY will be leaving soon anyway.
As Plato said, “One of the penalties of not being involved in politics is that you will be governed by your lessers”.
I’m sure you already agree with the second part.
Let’s give it a shot.
Kimmy,
Go home. Get some rest.
You had your chance now step out of the way if you’re not going to help.
Notice Kimmy has (as predicted) no solution. Just negativity.
Beware of these kinds of people friends.
They have given up and they want you to do it too.
Let’s ignore them.
Posted by: Gunnfan
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May 27, 2006 04:03 PM
I will call it a gem, when I see a series of articles listing out and identifying the politicians and civil servants behind each and every mismanaged project and how the paymasters kept releasing payments even when it was known that no progress was made. A GEIC who does not have the character to speak the truth and light up the dark and dirty secrets that have led us to this state of bankruptcy is only a cunning apologist hoping to have it both ways. In that sense, he is worse than the crooks who continue to plunder - a collaborator masquerading as a righteous crusader.
Posted by: Vaseau
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May 27, 2006 04:28 PM
Kingkong maybe right. If you save on usage how is crooked TNB going to pay the crooked IPP.
BTW, are the IPPs continuously supplying xMegaWatts whether there's usage or no usage? Or, maybe the question is how's the IPP billings to TNB? Are they supplying the power they are suppose to supply? Who has answers to these questions?
Posted by: concern-lah
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May 27, 2006 04:48 PM
flip a coin. Head! you lose. Tail! you still lose.
either way, you can't win. This is the name of the game. F***!
Posted by: KLL
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May 28, 2006 11:36 AM
Gunnfan,
I agree on your second part, but I could NEVER agree in giving Gerakan another chance. As long as LKY trying to send his son up to be amongst the elite in Gerakan. I would rather put an X to the moon traveller :) who will make more constructive voice than head nodders.
Posted by: Grengo01
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May 29, 2006 12:23 PM
http://www.nst.com.my/Current_News/nst/Monday/Columns/20060529083055/Article/pp_index_html
Brendan Pereira on Monday: A monument to 'sweet' deals
By Brendan Pereira
30 May, 2006
THIS is what you call a sweet deal. You get a contract for RM167 million. You muck up, bust the deadline, do a sub-par job, refuse to carry out repairs, watch someone else clean up your mess and retreat to the sidelines as a simple job, supposed to take three years, becomes a millstone around the Government’s neck for nine years more. Drum roll, please. Because here is the topping to this saccharine-soaked deal: You are not accountable for the monumental mess. No fine. No jail time. No compensation.
Welcome to the world of Perangsang International Sdn Bhd (PISB), the contractors who clinched the deal to build the Matrade building on Jalan Duta in 1993. The same company that is under the microscope today because:
• It did not complete the job.
• Its shoddy work cost taxpayers RM120 million more.
• It is possible that no PISB director is going to be held accountable for this fiasco.
• The case offers a snapshot of how projects can go awry when political considerations trump other factors when awarding contracts.
• All of the above.
To recap, the Public Works Department finally handed over the Matrade building on Tuesday — 12 years after the contract was awarded to PISB. That milestone was the perfect opportunity for Trade and Industry Minister Datuk Seri Rafidah Aziz to ask the most obvious question: How did the delay happen?
She wanted the authorities to take action against PISB and also find out if there was any wrongdoing in the tender process.
What followed was a burst of concern and promises of action from government leaders. So perhaps while everyone is in fault-finding mode, it is timely to lift the veil on PISB and learn how they were given the sweet deal.
PISB was a subsidiary of Kumpulan Hartanah Selangor Bhd, an investment company of the Selangor Government. Among its directors were several grassroots politicians. Not household names or movers and shakers, but branch and division politicians.
In 1993, the PWD called for a limited tender to build the Matrade building and estimated that it would cost RM175 million and take 125 weeks to complete.
After studying the 14 bids, PWD recommended that Ireka Construction be given the job. The company promised to complete the job in 138 weeks for RM157 million. The recommendation was forwarded to the Finance Ministry and was promptly dumped.
The ministry wanted the 14 companies to re-submit their bids. But two days after it issued that directive, the Finance Ministry surprisingly ordered PWD to negotiate directly with PISB.
Why this company was given the contract still stumps the people at PWD.
From the start, there were problems. PISB obtained the development order late and it needed three extensions, delaying the completion by 686 days. When it completed 98 per cent of the project in 1999, the PWD discovered cracks in the structure and ordered PISB to carry out repairs. The contractor refused, saying that it had carried out the project according to specifications.
PWD and the Finance Ministry — now under a new minister — obtained the services of Arup Consultants. Even after the consultants concurred with PWD’s findings on the structure of the Matrade building, PISB refused to carry out remedial work.
At this point, you have to sit back, digest what has happened and ask some elementary questions.
Question number 1: Why wasn’t PISB or its directors sued in 1999 for not doing their job competently? Why wait until now to visit the possibility of taking action?
Question number 2: Were the terms of the contract so generous that the contractor could walk away without agreeing to do remedial work?
Left with little choice, the PWD appointed another contractor to complete the job. The original contract to PISB was terminated last March and the company was ordered to pay late delivery charges of RM95 million.
Can the money be recovered? Put it this way: There is a better chance of Malaysia qualifying for the 2010 World Cup than PISB paying any compensation.
And here is why: PISB was sold off to Tajuk Modal on July 19, 2004, for RM2. PISB was renamed Tajuk Construction Sdn Bhd and the latter was wound up on Jan 18 this year. In short, PISB doesn’t exist anymore. In any case, it would have been tough to go after the directors of PISB. The contract was signed with the company and unless the directors gave any personal guarantees, they would not be liable in a personal capacity.
Some options appear available to the authorities.
One: Lodge a police report, find out if the decision by the Finance Ministry was above board and pursue any wrongdoing — no matter where it leads.
Two: Urge the Selangor Government to make good the RM95 million owed to the Federal Government. After all, before it tanked, PISB was a subsidiary of the State’s investment arm. Surely, the people at Shah Alam have a moral obligation to right this obvious wrong.
Posted by: ktak
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May 30, 2006 07:07 AM
Ha! It was the finance ministry again. Wasn’t it in those days under the same person who was also pushing very hard for the materialization of the crooked bridge? Simply Amazing! Sorry mates, our future generations will have to pay for all these stupidities or rather greeds.
Posted by: Kingkong
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May 30, 2006 01:50 PM