This document discusses allegations of corruption and misconduct related to a large infrastructure project in Malaysia called the Port Klang Free Zone project. The project's budget ballooned from RM1.1 billion to RM4.6 billion. Several people were charged but later acquitted, including the former transport minister and project managers. The acquittals showed that Malaysia had failed to hold anyone accountable for the losses and that the system lacks integrity and transparency.
This document discusses allegations of corruption and misconduct related to a large infrastructure project in Malaysia called the Port Klang Free Zone project. The project's budget ballooned from RM1.1 billion to RM4.6 billion. Several people were charged but later acquitted, including the former transport minister and project managers. The acquittals showed that Malaysia had failed to hold anyone accountable for the losses and that the system lacks integrity and transparency.
This document discusses allegations of corruption and misconduct related to a large infrastructure project in Malaysia called the Port Klang Free Zone project. The project's budget ballooned from RM1.1 billion to RM4.6 billion. Several people were charged but later acquitted, including the former transport minister and project managers. The acquittals showed that Malaysia had failed to hold anyone accountable for the losses and that the system lacks integrity and transparency.
THE ISSUE The allegation of money laundering, corruption and breach of duties and trust against board of directors.
Malaysian Parliaments Public Accounts
Committee demanded an explanation over unusually high cost overruns from PKA a government agency of Malaysia that oversees almost all activities at the countrys most important port associated with the PKFZ. About 12 ALLEGATION CASE STUDY It was originally budgeted at RM1.1 billion (then around US$300 million) but the construction bill mysteriously quadrupled to RM4.6 billion (US$1.2 billion) by 2007 when the project was completed. In 2008, an audit by accounting firm PricewaterhouseCoopers commissioned by then-transport minister Ong Tee Keat concluded that the total cost of the project could balloon to RM12.5 billion, after factoring in interest payments. The incident sparked public outcry, made headlines for years and became campaign fodder for the Malaysian opposition for at least two federal elections but still led to no conviction. 1) OC Phang @ Datin Paduka Phang Oi Former General Manager of Port Klang Authority She was charged with criminal breach of trust related to RM254.85 million in expenses HELD :The Shah Alam Sessions has acquitted and discharged her on three counts of criminal breach of trust (CBT) involving RM254.85 million 2) Former Transport Minister Tun Ling Liong Sik This is one huge scandal involving dozens of companies revealed from an audit. Ling Liong Sik was charged for corruption was discharged and acquitted by the court. 3) Former Kuala Dimensi Project Manager Law Jenn Dong 4) Architect Bernard Tan Swee Seng 5) Kuala Dimensi chief operating officer Stephen Abok The three men had pleaded not guilty on Nov 8, 2010, to 24 counts of cheating OSK Trustees Bhd for payment of RM116.85 million to Kuala Dimensi Sdn Bhd (KDSB) for two projects at PKFZ. Court held: The Sessions Court acquitted and discharged three individuals charged with cheating in the construction of the Port Klang Free Zone (PKFZ) project without calling for their defence. Reality Check This affair is one of the many examples from the present administration that reveals conflict of interest, corruption and mismanagement involving politicians, business interests and public officials, Lings acquittal showed that Malaysia was no closer to identifying the culprit behind the losses resulting from the mega project, the cost of which had ballooned from RM1.1 billion to RM4.6 billion in 2007. It shows the whole system not talking about any particular person the failure of the whole system of integrity and accountability This implication shows that Malaysia has never been high on accountability, integrity, transparency, justice and truth Conclusion The incident sparked public outcry, made headlines for years and became campaign fodder for the Malaysian opposition for at least two federal elections but still led to no conviction.