I have always hold the view that the Penang Outer Ring Road (PORR) is a classic example of Umno’s crony capitalism at works par excellence. The project was awarded in 1998 to Penang Umno leaders including Tun Rahman Abbas who was later made the State’s Governor.The company has no track record and has not build a foot of road or bridge. Now how much will Ahmad Ismail earn when MRCB take over 70% of the stake in PMW.
Read the following report from Business Star. I have also included some of my postings on PORR in this blog.

Monday May 28, 2007

MRCB eyes concessionaire

By DAVID TAN

MALAYSIAN Resources Corp Bhd (MRCB) is negotiating a 70% stake in Peninsular Metroworks Sdn Bhd (PMW), the concessionaire for the Penang Outer Ring Road (PORR) project.

It was reported early this month that MRCB, specialising in infrastructure development, engineering and construction and property development, was looking to take up a lead stake in PMW. Group managing director and chief executive officer Shahril Ridza Ridzuan had declined to comment.

Sources said MRCB was brought in to resolve certain long-standing shareholding issues at PMW and to ensure that the PORR project would start within the timeframe specified under the Ninth Malaysia Plan.

It is also learnt that the PORR project would cost about 30% more than the original cost of RM1.02bil.

“This is due to the rising cost of building materials,” a source said.

PMW’s shareholders are Nadi Senandung Sdn Bhd (with a 55% stake), Yayasan Bumiputra Pulau Pinang Bhd (35%), and an individual (the remainder).

In mid-2005, Setegap Bhd, one of the shareholders of PMW, sold its 26% stake in the company.

The 17km PORR stretches from Tanjung Tokong to Gelugor, and also across Gurney Drive, equipped with eight interchanges and four toll plazas.

The highway will pass through Bandar Baru Air Itam, Kampung Melayu, Batu Gantung, the Penang Municipal Park, Gottlieb Road, Gurney Drive, Jalan Pangkor, Tanjung Tokong and Glugor.

Its purpose is to disperse heavy traffic from Jalan Air Itam, Jalan Tanjung Tokong and Jalan Sultan Azlan Shah and alleviate the congestion in the town area.

The PORR is designed to be a four-lane dual carriageway with speed limits of up to 80km per hour. There will be some reclamation done on the Gurney Drive beachfront for a stretch of the PORR. A new Gurney Drive is also being planned to include a public park and a promenade that will be beside the road, on the seafront.

Last year, MRCB also expressed interest in bidding for the proposed RM1.2bil Penang monorail project. Shahril Ridza had said MRCB would leverage on its experience in building and operating KL Sentral Station when it bid for the project. The project, approved by the Cabinet in December 2005, was scheduled to start work in May 2006.

The Prime Minister is just acting as a trustee and has no personal interest in the Penang Outer Ring Road project.

This is the reply to my question asking the PM whether it was appropriate for him to be director of the Penang Bumiputera Foundation that control 34% equity of the Penang Outer Ring Road project and whether there will be a review of the project by offering it through open tender system and financed by government’s fund.

The reply said that the PM is the chairman of the Foundation set up to raise the economic status of Bumiputera in Penang. The equity in the concessionaire would be offered to Kumpulan Perhubungan Sdn. Bhd., a subsidiary company of the Foundation.

The government also said that the Cabinet has approved the award of the PORR contract to Peninsular Metro Works through privatization after thorough and comprehensive evaluation. Therefore the government will not reconsider other methods of financing the project.

Well, it is difficult to accept that PMW has passed through the stringent evaluation process. Other than being an Umno outfit and its political credentials, I think it has not proved itself on the technical and financial aspects in running this project.

Why can’t the government consider the Jelutong Expressway module? The developer builds the road in return of right to reclaim land for property development on both sides of the expressway. The road is also toll-free.

I have never changed my view of the PORR that it is Penang Umno’s crony capitalism at works.

Comments (2)
ParliamentWednesday, 31-05-2006 17: 04.43
Ten questions for Pak Lah. Ten answers for the rakyat.

I have just submitted ten questions for the coming Parliament session. In good parliamentary practices, questioning is one vital mechanism to hold the government accountable to its policies and decisions.The Standing Order had been amended to allow 90 minutes of Question Time and hopefully more questions could be answered by the administration.

Last month, I voiced my displeasure to the Parliament’s administration because none of my questions have been put in the top of the list the past 12 months.That means, I could only received written replies.In contrast, if you are called to pose an oral question, you could pursue the matter further by posing a supplementary question.

I brought up the matter at a meeting of the Standing Order Committee early this month. After the meeting, a Parliament staff told me, “Ministers do not like to answer your questions as most of them are quite sensitive.” Is that so!

Anyway, it is our responsibility to get the government’s accountable for its policies. Question Hour is just one of the mechanism in Parliament.

This time, I have ten questions for the PM ranging from the police revolt over the IPCMC and his link with the PORR concessionaire.
I am also looking for answers with regard to the status of the Second Bridge and Monorail project, Penang’s city status and public transportation.

Last but not least, two questions close to my heart, on national unity and religious freedom in the country.

I hope these questions would not be considered too sensitive and be answered over the 14-day sitting. (more…)

Comments (0)
Penang, Scandals, PoliticsTuesday, 30-05-2006 15: 38.39
Near media blackout on Abdullah’s link with PORR contract

“After yesterday’s press conference on PM Abdullah’s link with the Penang Outer Ring Road (PORR) project, I told members that either there would be big coverage or a complete blackout in the next day’s newspaper.

By evening after surfing the website of several Chinese dailies and found nothing reported about my “expose”, I knew the newspapers would be extra cautious with this piece of news as it involved the Prime Minister.

Actually, stories about Abdullah’s role in the PORR project could be found in certain website. However, no one has brought the matter to the mainstream media yet.

This morning, I found that almost all the Chinese presses have black-out the news.
Kwong Wah, Sin Chew, China Press and Oriental Daily did not carry the story.
Normally, the Chinese newspapers (usually in the local sections) would provide enough space for Opposition news but that was no ordinary news.

I was surprised that the more conservative Nanyang Siang Pau carried the news on their national page. Another write-up was also found in the local section. Guang Ming Daily carried the news in the same page as the reports on the Penang State Legislative Assembly.

However, both Nanyang and Guang Ming Daily treated the news with the “utmost care”, reporting it in a “backdoor” manner. I have said clearly the PM Datuk Seri Abdullah was named as a director of Yayasan Bumiputra Pulau Pinang, who owns 34% of the PMW share via two wholly-owned companies, Kumpulan Pinang and Kumpulan Perhubungan.

The news report said a person bearing the same name as the PM was named as a director. In a cheeky manner, the report said the I.C. Number and the address at Putrajaya also matched that of the PM.

Only theSun carried a 3-paragraph brief on Page 2 under the heading, “DAP questions PM’s credibility.”

Do you expect the NST, Star, Utusan and Berita Harian to carry this news?

PM Abdullah told the people that he wanted to hear the truth. But local media owner have their annual licence to take care of. But it is this fear that would not help PM Abdullah in his fight against corruption and to promote good governance, integrity and ethics in his Administration. Without a free media, no chance can happen.

I can assure you that I will continue to seek for an answer.

Comments (0)
Penang, Scandals, PoliticsMonday, 29-05-2006 16: 35.46
PM Abdullah linked to PORR, named director of Yayasan Bumiputra

Press Conference Statement by DAP Penang chairman and MP for Tanjong Chow Kon Yeow at the Penang State Legislative Assembly on Monday, 29 May 2006.

Prime Minister Abdullah linked to PORR concessionaire company, named as director of Yayasan Bumiputra Pulau Pinang Berhad
————————————————————————————————————————————-

The DAP today expresses shock that Prime Minister Abdullah Ahmad Badawi is linked to the Penang Outer Ring Road (PORR) project’s concessionaire company, Peninsular Metroworks Sdn. Bhd. (PMW)

According to corporate information obtained from the Companies Commission of Malaysia, Abdullah (I.C. No.391126-07-5077) was first appointed director of the Yayasan Bumiputra Pulau Pinang Sdn. Bhd. His name is still listed as a director.

Yayasan Bumiputra now controls 34.78 percent of PMW through its two subsidiary companies; Kumpulan Pinang Holding Sdn. Bhd. and Kumpulan Perhubungan Sdn. Bhd.

This was a result of restructuring of the ownership equity in PMW. The shareholders areas follows:

Kumpulan Pinang Holding Sdn. Bhd. (222310-D) 10,000 share
Lingkaran Tanjung Sdn. Bhd. (676910-W) 340,000 share
Setegap Berhad (107232-X) 12,750 share
Kumpulan Perhubungan Sdn. Bhd. (60597-A) 1,190,000 share
Nadi Senandung Sdn. Bhd. (381079-U) 1,897,250 share

Setegap Berhad is a construction company listed on Bursa Malaysia.
Lingkaran Tanjung (formerly known as Jasminata Sdn. Bhd) was registered on 30.12.2004 and its registered address is at Suite 2.01, Tingkat 2, Wisma K.P.Loh, No 42 Jalan Besar, Kajang, Selangor. There is no information on the nature of its business and its financial standing. Sources said the directors are related to Datuk Ahmad Ismail.

Major shareholder, Nadi Senandung is principally controlled by Datuk Ahmad Ismail via a dormant company, Cedar Heights Sdn. Bhd. (267289-U).

From the web of ownership structure and list of directors, it has confirmed DAP’s allegation that the PORR project is a classic example of Umno’s crony capitalism.

We await PM Abdullah’s explanation and see how he can get out of this web of intriguing ownership of the RM1.02 billion PORR project.

Comments (0)
Penang, UMNO, Scandals, PoliticsWednesday, 24-05-2006 15: 19.09
Don’t award PORR to Umno bankrupt councillor

Press Conference statement by DAP Penang chairman and MP for Tanjong Chow Kon Yeow at the Penang State Assembly building on Wednesday, 24.5.2006.

Dr Koh Tsu Koon must not evade responsibility over Umno bankrupt Councillor issue
———————————————————————————————————
Yesterday, I said Penang CM Tan Sri Dr Koh Tsu Koon was trying to protect an Umno bankrupt Councillor as he has refused to reveal the councillor’s name when asked by the Press.

In an immediate response, Tsu Koon’s political secretary Mark Ooi told the Press that there was no cover-up in the matter by the CM.

Mark Ooi said, “This is a local government issue. The statement should come from the Council.”

I have expected the CM to clear the air on the matter but instead he directed his secretary to respond. I found the response way off the mark.

I went to the Penang State Assembly this morning and spoke to waiting reporters.

I asked: “Why is it so difficult to name Datuk Ahmad Ismail as the bankrupt Councillor.”

Mark Ooi was very wrong when he implied that the State Government has nothing to do with the issue.

The Local Government Act, 1976 empowers State Authority on the appointment of Councillors.

Clause 10(1) stipulates that the Mayor or President and Councillors are to be appointed by the State Authority.

Clause 10(2) gives the State Authority power to determine who shall be appointed as Councillors. Three years ago, the State Executive Council headed by Tsu Koon rejected a MCA nominee because the candidate was said to have dubious dealings.

Clause 10(7) says that the decision of the CM shall be final and binding on the local authority in matter referred to him by the President of the local council.

Clearly, the CM has all the power to deal with the matter. He has refused to publicly name the bankrupt Councillor and continue to protect him, why?

Mark Ooi also slammed the DAP for trying to capitalize on this issue.

This issue is about good governance, accountability and political integrity. Ahmad is behind the concessionaire of the Penang Outer Ring Road (PORR) project.

We have objected to Ahmad’s credibility and financial’s ability to implement this project.

This is a case of Umno’s crony capitalism of the highest degree. The NST said Umno leadership will leave it to PM Abdullah to decide on Ahmad’s fate. Pak Lah should also decide whether Ahmad’s company should be awarded the PORR project.

Comments (0)