Beneath the smoke-screen ( 1 ): The Free Zone bailout
We are quite aware that the NameWee Negaraku-ku issue can be made an effective tactic to distract us from an unporecedented host of grave issues affecting this country, aren't we? Let's put away the shades that wool your eyes.
There's more that meets the eye over the Mega Ghost Town, or the Disaster Zone, or the Port Klang Free Zone (PKFZ).
In theSun today, the award-winning team of R. Nadeswaran and Terence Fernandes followed up with another revealing story on Port Klang Authority (PKA), titled: Dodgy deal. Key exposé:
1 ) Quoting government sources, theSun said the PKA had bought land meant for the Port Klang Free Zone (PKFZ) well aware that it was encumbered property, an act regarded as "highly irregular" as anything the government and its agencies buy must have a clean title.2 ) The paper said PKA entered into discussions with Kuala Dimensi Sdn Bhd (KDSB) in 2001 to buy 404ha. At RM25 per sq ft, the deal was worth over RM1 billion.
3 ) When the sale to PKA became public knowledge, several members of the Pulau Lumut Development Co-operative (KPPL) co-operative, and at least "five or six" further interests, had put private caveats on the land to prevent any sale without their interests being considered.
4 ) It is noted that, at the point of the land sale, the chairman of KPPL, the original land owner, was Sementa Assemblyman and State Executive Councillor Datuk Abdul Rahman Palil, who was also a director of PKA.
5 ) The PKA is close to being insolvent. With its reserves of about RM500 million dwindling, there was an urgent attempt at a government bail-out. theSun said PKA had sought soft loans of up to RM4.6 billion from the government.
6 ) When the project was already in financial trouble in mid-2005, the PKA asked the Treasury for grants and a soft loan at an interest of 4% per annum with a six-year moratorium. However, what was not said was how PKA would find the money to repay the loan after the six-year period.
MORE TO COME. theSun also quoted industry sources as saying that a Malaysian Ports Commission is being set up to collect levies from all ports to repay the government.
In the first place, if you remember well, the Ministry of Transport and PKA has given the assurance that the PKFZ project will be self-financed.
Let's welcome the 'first' mega bailout under this Abdullah Administration, and the taxpayers are very willing to pay, aren't they?
Comments
RM4.6 billions average for 6 years equal to RM766 millions per year/ or RM 63.8 millions per month, over 6 years, even without interest.
With 4% interest per annum, it is about RM184 millions interest per year/RM15.3 millions per month. Spend across 5 years, the interest will cost RM1.104 Billions.
Now there is more question
1. Why can't they ask for a proportional release of funds.
2. Why MoF give them the funds in one chunks? Why not proportional release? Cut the funds the things not work out?
Watching the recent stock market meltdown, I smell there is something fishy between PKFZ bailout and the KLSE.
This is my speculation : there is NO REASON PKFZ need a RM4.6 billions to keep it solvent, unless PKFZ owes BILLIONS on default. It seems history REPEAT itself, if someone recall 1997 Sime finance RM400 millions scandalous loan.
Why I just feel "somebody" just want to use RM4.6 billions to gambles on KLSE to make quick money.
Watching the efforts spend to distract Malaysian learning the bailout, it is correct to put RM4.6 Billions price tag on Negaraku-ku.
Posted by: moo_t![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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August 20, 2007 02:03 PM
PKA, PKFZ, KDSB should be commended for getting a good deal for themselves. It's an art to rob the poor and getting away with it. Maybe, some of the african countries could learn something from us.
Posted by: mohair sam![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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August 20, 2007 03:39 PM
setting up the malaysian ports commission is similar to setting up malaysian airports bhd. everyone now have to pay high airport tax in order to help pay for KLIA, including those in kk and kuching.
I have to wait for CKC from minstry of transport to give a report first before making comment on PKFTZ
Posted by: sydput![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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August 20, 2007 03:40 PM