Secret depots siphoning off billions of ringgit in CPO

PETALING JAYA: Crude palm oil worth billions of ringgit is being siphoned off by syndicates while being transported from mills to refineries.

The culprits involved in the racket include tanker drivers, depot operators and transporters.

Between 100 litres and 200 litres are siphoned off from each tanker which transports about 40 tonnes of crude palm oil per trip.

The drivers are paid between RM100 and RM200 per operation depending on the quantity of oil siphoned from the tankers.

The amount siphoned off is replaced with liquid such as water, used oil or sludge so the end-buyer would not realise the theft.

The hotspots in the Klang Valley where the siphoning is rampant include Kuala Selangor, Rantau Panjang in Port Klang, Dengkil, Jeram, Kapar, Rawang and Klang.

Beyond that, the active areas include Gambang, Temerloh, Mentakab, Johor Baru, Segamat, Yong Peng, Mersing, Simpang Renggam, Kota Tinggi, Senai, Masai, Kamunting, Manjung, Sitiawan, Sungai Siput, Bahau, Batu Kikir and Tampin.

Crude palm oil is mainly exported for production of items such as cooking oil, non-dairy creamer, condensed milk, butter and margarine.

Statistics provided by the Malaysian Palm Oil Board revealed that the thefts costs the industry RM325mil in losses in 2008.

With the crude palm oil price averaging at RM2,600 per tonne now, the extent of losses is this year expected to match last year’s figure.

Over 20 transporters are said to be operating 1,500 tankers moving crude palm oil.

Most people do not suspect anything amiss when they see tankers going off the road and heading to “depots” in plantations or villages, where the siphoning takes place.

Oil thieves at work: Workers transferring oil from a stationary tank into a small lorry at the ‘depot’ in Jalan Rantau Panjang in Klang, while inset shows a worker sitting on top of a tanker with black netting obscuring the view of passing motorists from watching the siphoning activities.

The “depots” are manned by men who look like foreign workers. Outside, along the main road, other men move in cars and keep watch.

A StarProbe team tracked the movements of several tankers for more than two weeks to uncover the theft.

Most of the “depots” have two access routes — an entrance and exit. Some of these “depots” are said to be operated by small-time transporters.

The team also found that some of the “depots” operated into the late hours of the night under bright spotlights.

At these “depots”, workers used tubes and mini motors — similar to those used in fish aquariums — to siphon the crude palm oil into plastic buckets and drums.

The thieves were also seen tampering with the oil seals at the back of the tankers.

After the siphoning is completed, the workers were seen pouring liquid believed to be water, sludge and used cooking oil, into the tankers.

At one such “depot” in Kuala Selangor, the team recorded seven tankers, including four laden with crude palm oil, entering and then exiting from the site half an hour later.

The siphoning process takes only between five and 10 minutes. Up to 200 litres of crude palm oil can be siphoned in that time.

One “depot” in Jalan Rantau Panjang in Klang was fully covered with zinc hoarding and later put up dark nets when the thieves realised their illegal activities were visible from a flyover along the Shapadu Highway.

Another “depot” located off Jalan Kem in Port Klang was strategically located in an industrial lot away from the main road.

The StarProbe checks revealed that between 10 and 40 tankers patronised the “depots.”

The “depot operators” pay the drivers about 50% of the market price for the crude palm oil which amounted between RM100 and RM200 per trip.

A “depot” can make up to RM4,000 daily from the sales of the siphoned crude palm oil. That works out to almost RM1.5mil a year. (TheStar)

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Plots given to five-year-olds and grassroots politicians

PETALING JAYA: At least two five-year-olds are among 81 youngsters who were allocated plots of land in a squatter resettlement area in Taman Selayang Mutiara, Selangor, in a land scam which began more than 20 years ago.

Hundreds of names of eligible original squatters in the Bukit Botak resettlement project, meanwhile, were deleted and replaced with those of people, some of whom are now only in their 20s.

These landowners were born between 1978 and 1980 — meaning they would have been between just five and seven when they were assigned the lots in 1985.

Plots were also given to outsiders, including some not from Selangor, who are obviously not entitled or qualified to get the land.

On top of that, plots were also given to grassroots politicians who were not squatters or even residing in the area.

The resettlement scheme started in 1985 when large tracts of land were pledged to the 1,634 original squatters. The names of 215 original squatters went missing from the land allocation list.

Of the 1,634 lots, 270 in Kampung Bendahara were given to the squatters who eventually settled there in 1990.

The remaining lots were assigned to squatter families by the state government in 1995 but they are still waiting for their lots.

The saga, that has been ongoing for over two decades now, has seen five Mentris Besar taking charge of the state, including the current administration of Tan Sri Khalid Ibrahim.

Tan Sri Ahmad Razali Ali was Mentri Besar in 1985, followed by Tan Sri Muhammad Muhammad Taib (1986-1997), Tan Sri Abu Hassan Omar (1997-2000) and Datuk Seri Khir Toyo (2000-2008).

A special committee formed under Selangor Housing, Building Management and Squatters Committee chairman Iskandar Abdul Samad revealed that 81 of the landowners were under 18 years old. Of that number, 37 were below 12 when they were assigned the plots.

As the state government investigates how these people were given approval to own land in the scheme since 1985, allegations are being made that the names of the genuine squatters are missing from the original list of people to be compensated with land.

Some squatters claimed that 215 names of genuine settlers had been left out of the original list.

In a a special interview with a Star Probe Team, Iskandar said the state government was aware that plots had been allocated to children, youths, grassroots politicians and outsiders.

Although the land approvals were granted to these people since 1985, he said the titles were only issued from 2007 onwards.

Suspecting irregularities and discrepancies in the way the plots had been allocated, Iskandar said Khalid ordered the land office last year to stop giving out titles to the remaining people.

“We stopped issuing titles and only some 900 people have been successful in obtaining their titles so far. This is the best the state can do at this moment and it does not mean that we will not release the titles to the rest of the successful candidates.

“We give an assurance all those who are genuine applicants that they will get their titles,’’ he said.

Iskandar said the state was in a fix due to the fact that some of the titles had been given and it would be almost impossible to revoke them.

He said, however, that the state was looking into the legal aspects on how action could be taken against those who had obtained the titles illegally.

“We are serious about resolving the Bukit Botak squatters issue and will do everything possible to ensure justice is done,’’ he said.

Meanwhile, an earlier study by the Selangor State Development Corporation (PKNS) found that only 1,049 lots were available for distribution to the 1,364 squatter families.

Barren land: Former squatters looking at the area in Bukit Botak where houses were to have been built. Until today there is still no sign of the project taking off. — AZMAN GHANI / The Star

The PKNS study showed that the names of 215 squatters who originally stayed in Bukit Botak were missing in the land allocation list of the 1,049 eligible applicants.

The original grants by the state government was a plot of 2,200 sq ft of land for each squatter family.

However, it was discovered that the names of certain grassroots politicians who were not squatters were among the 1,049 successful applicants, with some of them given plots of more than 3,000 sq ft, well above the official lot size.

Delpuri Corp Sdn Bhd, the contractor appointed to handle the Bukit Botak project, was given a 22,000 sq ft plot and also a 9.6ha of land as contra payment to build low and medium-cost houses costing RM42,000 to RM79,000.

Its general manager Ler Chang Koi said in an earlier statement that the company had not abandoned the project, but was told that the PKNS would take over.

Long list: Satar (left) and Kampung Selayang Baru Village Development and Security Committee chairman Azizan Md Ali showing the names of 81 people below the age of 18 who were allocated lots in Bukit Botak

“But, after three years, the PKNS itself was unable to finish the job and pushed the blame to our company, saying that it had abandoned the project,” he said.

‘’We are willing to complete the project. However, we need to get a letter of consent from PKNS or the state government,’’ Ler said.

PKNS public relations manager Mohd Wazir Abdul Gani said the corporation was only given a directive by the state government in December 2005 to take over the project.

“The PKNS had to follow the state directive and came up with a proposal to build houses costing only RM80,000 each, but only 20% of the squatters accepted the proposal,’’ he said.

According to Bukit Botak squatters spokesman Satar Md Saman, of the 1,364 lots for distribution, 270 have been given to those staying outside Selayang Baru while 160 lots were given to those who had never lived in Bukit Botak.

Chronology of events in Bukit Botak

1985 - Selangor state government announced that the 1,634 squatter families would be offered individual land titles.

1990 - Some 270 families were issued land titles in Kampung Bendahara (not too far from the area)

1996 - Delpuri Corp Sdn Bhd awarded contract to develop the 55.2ha of land.

1996 - State Government also offered Delpuri 9.6ha of land as incentive.

2000 - Construction agreement signed between the developer and all the squatters.

2000 - Three hundred of the squatter families also granted Delpuri the Power of Attorney to develop their lots.

2003 - Documents were stamped.

2003 - Completed the construction of 82 houses.

2005 - The Selangor Government ordered its subsidiary Selangor State Development Corporation (PKNS) to take over the scheme from Delpuri after the developer failed to complete the construction of the Semi-D homes.

2006 - PKNS went in and carried out infra-structure development at a cost of RM40mil.

2007 - Began issuing land titles.

2008 - Mentri Besar Tan Sri Khalid Ibrahim ordered the scheme to be reviewed and stopped issue of titles.

Courtesy of TheStar

Tomorrow:The PKNS response

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D-Day for Khir Toyo in privileges panel inquiry

SHAH ALAM: Former Selangor Mentri Besar Datuk Seri Dr Mohd Khir Toyo who did not attend the state privileges committee inquiry in March and made negative media reports on it will know his fate next Tuesday.

A decision will be made based on his explanation yesterday over his failure to attend the Select Committee on Competence, Accountability and Transparency (Selcat) inquiry and attacking it in the media.

Also giving their reasons yesterday for attacking the inquiry in the media in March were assemblymen Datuk Warno Dogol (Sabak Bernam), Datuk Mohd Idris Abu Bakar (Hulu Bernam), Mohd Isa Abu Kassim (Batang Kali) and Datuk Marsum Paing (Dengkil).

In the eight-day Selcat inquiry in March witnesses had testified that millions of ringgit from the state’s business arm were squandered by Balkis, a charity headed by Dr Khir’s wife Datin Zaharah Kechik while he was in office.

Yesterday, Dr Khir told reporters after a closed-door inquiry that he was barred from making any press statements on the meeting.

“Just cannot say anything because the privileges committee chairman Teng Chang Khim has told me so,” he said.

Teng later said that he too was bound by the Standing Orders and could not reveal matters that transpired in the inquiry.

“If all of them are found guilty they could be asked to apologise, be given a warning, suspended from the state assembly or even be stripped of their salaries and allowances,” he said, adding that he had previously been suspended for 30 months during Dr Khir’s administration. (TheStar)

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Perak crisis: Stay of execution granted

1:15pm The Court of Appeal grants Datuk Seri Dr Zambry Abd Kadir his application for a stay of execution on the KL High Court ruling yesterday that declared Datuk Seri Mohammad Nizar Jamaluddin the righful mentri besar of Perak. Essentially, it might mean Dr Zambry is mentri besar until his appeal is heard.

12:30pm Datuk Seri Dr Zambry Abd Kadir, whose three-month tenure as mentri besar was ruled illegitimate by the KL High Court on Monday, has likened himself to Nelson Mandela and Mahatma Gandhi in a blog entry.

12:15pm At the press conference at the Ipoh state secretariat building, senior exco member Datuk Ngeh Koo Ham also says that Dr Zambry and the six state exco members he appointed should return the salaries they have drawn over the past three months.

12:05pm At the press conference at the Ipoh state secretariat building, senior exco member Datuk Ngeh Koo Ham declared the tumultous May 7 Assembly sitting as invalid, and the March 3 “under the tree” sitting as valid.

He said the Assembly automatically dissolves on Sept 3 if there are no more sittings.

The May 7 sitting saw Speaker V. Sivakumar manhandled out of the Dewan and Barisan's Datuk R. Ganesan declared the "new" Speaker.

The Pakatan state government also said it would implement 10 policies and matters immediately, saying that state development was behind by three months.

11:20am Pakatan press conference at the state secretariat building in Ipoh delayed because the press was initially barred from entering the building. Press conference is now set to begin.

11:00am Umno veteran Tengku Razaleigh Hamzah urges the Sultan of Perak to dissolve the Assembly. See here.

9:25am Most of the FRU trucks and police vehicles leave the state secretariat building, leaving a handful behind. Pakatan reps say a press conference will be held at 11am.

An aid for the Perak Mentri Besar Amran Harun showing the official letter sent to the palace official at Istana Kinta. Datuk Seri Mohammad Nizar Jamaluddin, in the letter, is requesting an audience with the Sultan for the purpose of dissolving the state assembly.

9:20am Datuk Seri Dr Zambry Abd Kadir files appeal against Kuala Lumpur High Court ruling yesterday that Datuk Seri Mohammad Nizar Jamaluddin is the valid Perak Mentri Besar. The appeal was filed at the KL High Court registry.

He also filed a stay application on Monday’s ruling at the Court of Appeal. His lawyers are asking that the appeal be heard today itself.

The hearing for the stay application will be heard at about 11:30am at the Palace of Justice in Putrajaya.

8:45am Nizar’s aide Amran Harun leaves the palace after showing members of the media a copy of the letter to the palace, with the royal seal stamped on it.

8:20am Nizar’s aide Amran Harun, delivers letter informing palace of Nizar’s wish for an audience with the Raja Muda to seek his royal consent to dissolve the Assembly.

8:15am Suspension letters served to State Secretary Datuk Dr Abdul Rahman Hashim and State Legal Adviser Datuk Ahmad Kamal Md Shahid.

7:45am Nizar seen leaving the building in his official car for Istana Iskandariah, Kuala Kangsar, for a royal investiture ceremony by the Raja Muda of Perak, Raja Nazrin Shah. He was accompanied by his wife.

7:40am Pakatan exco members find most of the offices locked. The KL High Court had instructed Datuk Seri Dr Zambry Abd Kadir and his exco members to vacate the offices on Monday.

7:25am Perak Mentri Besar Datuk Seri Mohammad Nizar Jamaluddin and his entourage head for the state secretariat building, where there is heavy police and FRU presence. They are temporarily denied entry. Nizar starts reciting prayers.

7:15am Pakatan Rakyat state executive councillors start gathering at the so-called “democracy tree” where the March 3 “under the tree” Assembly sitting took, to await reinstated Perak Mentri Besar Datuk Seri Mohammad Nizar Jamaluddin.

IPOH: Reinstated Perak Mentri Besar Datuk Seri Mohammad Nizar Jamaluddin left from the state secretariat building here at 7:45am Tuesday for Istana Iskandariah in Kuala Kangsar for a royal investiture ceremony.

He is expected to seek royal consent from the Raja Muda of Perak, Raja Nazrin Shah, to dissolve the State Legislative Assembly to pave the way for fresh state elections.

His aide Amran Harun, delivered a formal letter informing the palace of Nizar’s wish for an audience with the Sultan of Perak, Sultan Azlan Shah, to seek his royal consent to dissolve the Assembly. The letter was delivered at 8:20am.

Pakatan Rakyat state executive councillors had started gathering at the so-called “democracy tree” where the March 3 “under the tree” Assembly sitting took place as early as 7:30am.

Nizar arrived at the state secretariat building, where the Mentri Besar’s office is located, at about 7:25am.

He was accompanied by his eight state executive councillors, led by senior exco member Datuk Ngeh Koo Ham and state assembly speaker V. Sivakumar, who had arrived at 7:10am. Also accompanying them was Ipoh Barat Member of Parliament M. Kulasegaran.

The building was heavily guarded by Federal Reserve Unit (FRU) personnel, with some in riot gear.

Nizar and his entourage were momentarily stopped outside the gate when they tried to enter the compound. As the police tried to inform Nizar that only his exco members, the Speaker and him would be allowed entry, Nizar started reciting prayers.

They were then allowed in, but members of the media were prevented by the police and security personnel from advancing beyond the gate.

According to some witnesses, the police had told Nizar that they were acting under the instructions of State Secretary Datuk Dr Abdul Rahman Hashim.

Nizar, who was declared the rightful mentri besar by the Kuala Lumpur High Court on Monday, had actually suspended Abdul Rahman, although the letter of suspension had not been served yet.

Suspension letters were served to both Abdul Rahman and State Legal Adviser Datuk Ahmad Kamal Md Shahid at about 8:15am.

On Monday, High Court (Appellate and Special Powers) judge Justice Abdul Aziz Abdul Rahim had granted a declaratory relief to Nizar that he is still and was mentri besar at all material times.

The court, which issued a declaratory relief that Datuk Seri Dr Zambry Abd Kadir had no right to occupy the office of Perak Mentri Besar, also ordered him to show cause and give information under what policy, power or authority he allegedly held office and exercised the responsibilities, functions and duties as mentri besar. (TheStar)

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Nizar seeks audience with Sultan Perak

IPOH: Reinstated Perak Mentri Besar Datuk Seri Mohammad Nizar Jamaluddin left from the state secretariat building here at 7:45am Tuesday for Istana Iskandariah in Kuala Kangsar for a royal investiture ceremony.

He is expected to seek royal consent from the Raja Muda of Perak, Raja Nazrin Shah, to dissolve the State Legislative Assembly to pave the way for fresh state elections.

His aide Amran Harun, delivered a formal letter informing the palace of Nizar’s wish for an audience with the Sultan of Perak, Sultan Azlan Shah, to seek his royal consent to dissolve the Assembly. The letter was delivered at 8:20am.

Pakatan Rakyat state executive councillors had started gathering at the so-called “democracy tree” where the March 3 “under the tree” Assembly sitting took place as early as 7:30am.

As soon as Nizar arrived, the group moved towards the state secretariat building where they were temporarily denied entry by police who said they were acting under the instructions of State Secretary Datuk Dr Abdul Rahman Hashim.

There was a heavy police presence at the building, with some of them in riot gear.

Nizar, who was declared the rightful mentri besar by the Kuala Lumpur High Court on Monday, had actually suspended Abdul Rahman, although the letter of suspension had not been served yet.

The Pakatan group was finally allowed in after a few minutes. Also accompanying them were Ipoh Barat Member of Parliament M. Kulasegaran and V. Sivakumar, who was ousted as Speaker in the May 7 State Assembly sitting whose validity is now under question.

Suspension letters were served to both Abdul Rahman and State Legal Adviser Datuk Ahmad Kamal Md Shahid at about 8:15am.

On Monday, High Court (Appellate and Special Powers) judge Justice Abdul Aziz Abdul Rahim had granted a declaratory relief to Nizar that he is still and was mentri besar at all material times.

The court, which issued a declaratory relief that Datuk Seri Dr Zambry Abd Kadir had no right to occupy the office of Perak Mentri Besar, also ordered him to show cause and give information under what policy, power or authority he allegedly held office and exercised the responsibilities, functions and duties as mentri besar. (thestar)

Meanwhile, MIC politician R Ganesan has been reported as saying the Umno-BN would hold an emergency sitting of the state assembly to legally vote out Nizar.

As Ganesan is not an elected representative, perhaps it is understandable that he did not grasp the significance of Monday’s ruling, which invalidates the existence of the Zambry Kadir administration right from day one.

However, Nizar has said he will not automatically revoke all decisions entered into by Zambry ,but these will have to be subjected to review. The exception will be the controversial May 7 sitting, during Ganesan was illegally voted in as Umno-BN’s Speaker of the assembly.

“As far as we are concerned, they have no right to call for an assembly. How can they call for a sitting when they don’t have the legitimacy to do so?” he had said to reporters at a meeting conducted in the wee hours of this morning.

Should the Pakatan agree to a sitting, they would control the 59-seat assembly by 28 to Umno-BN’s 21 as 10 lawmakers, including Zambry, are still in suspension for between 12 to 18 months after breaching House rules.

Despite the advantage, Pakatan has promised to dissolve the assembly and call for the fresh election that Perak folk have clamoured for.

State secretary Abdul Rahman Hashim and state legal advisor Ahmad Kamal Shahid were also suspended by Nizar for gross unprofessional conduct. The pair - along with Jelapang assemblywoman Hee Yit Foong, Changkat Jering’s Mohd Osman Jailu and Behrang’s Jamaluddin Radzi - incurred national notoriety for their treacherous behaviour. (tmi)

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Sultan can appoint MB but can’t remove him

KUALA LUMPUR: The power of the Sultan to appoint or remove a mentri besar took centrestage at the High Court yesterday in the case between former Perak MB Datuk Seri Moham­mad Nizar Jamaluddin and his successor Datuk Seri Dr Zambry Abdul Kadir.

Nizar’s lead counsel Sulaiman Abdullah, who noted that the Perak Constitution was the highest authority in the state, submitted that while the Sultan was conferred the power to appoint a mentri besar, he did not have the same power to remove a sitting mentri besar.

“It is well and good in appointing, that is entirely up to the Sultan but getting rid of the mentri besar is no longer the Ruler’s function – it is now up to the state council. That can only be done through a vote of no confidence in the House,” Sulaiman told High Court judge Justice Abdul Aziz Abdul Rahim when submitting on Nizar’s application to seek a declaration that he is the rightful mentri besar.

Nizar is also seeking an injunction to bar Zambry from discharging his duties as mentri besar.

This came after the Pakatan Rakyat government in Perak collapsed when three Pakatan assemblymen declared themselves independent, but friends of the Barisan Nasional coalition, in February. Zambry was subsequently appointed Mentri Besar.

Sulaiman said the appointment of a person to the office of the mentri besar was only valid if the office was vacant, as there could not be two persons holding the office.

“And the office will only be vacant if Nizar resigns or is dismissed. Nizar has not resigned,” he said, arguing that Zambry’s appointment was, therefore, unconstitutional.

Abdul Gani, who is an intervener in the case, however, said the Sultan had carried out his duty under the state constitution to ascertain that Barisan had the majority before appointing a new Mentri Besar.

There were only two provisions in the state’s constitution, he said, when a mentri besar could request for a dissolution of the state legislative assembly.

One was under Article 36(2) of the Perak Constitution when the five-year term of the assembly was drawing to an end and the other was under Article 16(6) when the mentri besar had lost the confidence of the majority of the House.

Nizar, he explained, had made the request under Article 16(6).

“When the Sultan refused the request, he and members of his exco are deemed to have resigned and their offices in the exco are vacated automatically. The mentri besar’s office therefore fell vacant and Zambry was lawfully appointed as the Mentri Besar,” he submitted.

Sulaiman counter-argued by stating that the mentri besar, similar to a prime minister, could request for a dissolution of the assembly prior to the five-year term.

The hearing continues today. (TheStar)

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Penanti by-election: May 23 for nominations, May 31 for polling

PUTRAJAYA: The Election Commission (EC) has set May 23 for nominations and May 31 as the polling day for the Penanti by-election.

EC chairman Tan Sri Abdul Aziz Yusof made the announcement at a press conference at the EC office here Monday.

The by-election is the sixth since the March 8 general election last year.

The state seat in Penang fell vacant following the resignation of its assemblyman Mohammad Fairus Khairuddin, 33, on April 16 citing that it was in the best interest of the party.

Fairus had added that he wanted to further his studies and clear his name against allegations of being involved in illegal quarry dealings in Penang.

Earlier on April 8, Fairus had resigned as Deputy Chief Minister 1 following the allegations of corruption.

Although he was later cleared of any wrongdoing by the Malaysian Anti-Corruption Commission, he stuck to his decision to resign as Penanti assemblyman. (TheStar)

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Withdraw would portray that BN is weak - DrM

RAUB: Umno has to contest the Penanti by-election or it will disappoint its members and supporters, said former Prime Minister Tun Dr Mahathir Mohamad.

He said Umno was a party that does not fear placing candidates in the elections.

Welcome back: Dr M signing authographs for the Benom Resort national service trainees after his speech on the future of Malay youths in Raub yesterday. Looking on is Dong assemblyman and Raub Umno division chief Datuk Shaharuddin Abdul Moin.

“History has proven that Umno could face even the super powers including the British until we gained Merdeka,” he said, adding that the fighting spirit of those days should be a lesson for the present and future generations.

Withdrawing from the contest, he said would also portray the coalition as being weak.

He said that Umno should not surrender although the seat is with the Opposition, adding that during his time as Prime Minister, Umno had never withdrawn from any by-election even in the Opposition state of Kelantan.

“I think if it (Penanti) is Umno’s area (strong hold), I am sure we will contest.

“Win or lose is a separate matter; if we do not contest then it already indicates that the other party wins,” he told reporters after presenting a keynote address at a Malay youth function at the Rakan Muda Sports Complex yesterday.

On the subject of the crooked bridge from Johor to Singapore, Dr Mahathir said it should continue and that it was a lie that Johoreans did not want the project.

He also advised Barisan Nasional members to correct their leaders if they felt their leaders had made mistakes.

“Criticising their leaders does not mean that they are disloyal to the leaders,” he said.

Meanwhile, Puteri Umno chief Datuk Rosnah Abdul Rashid Shirlin agreed that the increasing number of by-elections caused by the Pakatan Rakyat was a huge waste of taxpayers’ money and time.

“Stop playing around. It is uncalled for and not constructive,” Rosnah told reporters yesterday referring to the possible by-election at Penanti after former Penang chief minister I Mohammad Fairus Khairuddin resigned on Thursday.

“We are in the midst of an economic crisis and that is what we should be tackling, not by-elections. They are just creating a burden for the people with so many by-elections,” said Rosnah. (TheStar)

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Khir breached the Exchange Con­trol Act and the Anti-Money Laundering Act in purchasing Mecca homes

SHAH ALAM: The purchase of several apartment units in Saudi Arabia by Permodalan Negeri Selangor Berhad (PNSB) in 2007 may have contravened two laws.

In a statement released to the media by Selangor Mentri Besar Tan Sri Khalid Ibrahim’s political secretary Nik Nazmi Nik Ahmad yesterday, it said the purchase could have breached the Exchange Con­trol Act and the Anti-Money Laundering Act.

He said records showed that the PNSB board of directors had approved the purchase of five units of the property amounting to RM8.35mil.

However, PNSB had transferred RM25.6mil for the purchase of 12 units of the said property without the board of directors’ approval.

The seven extra units were then sold to an individual for RM17.25mil.

Nik Nazmi said that while the purchase was traded in Saudi Arabia Riyal by PNSB, it was sold in ringgit to the individual.

“To date, PNSB has no records indicating that the individual had obtained approval from the relevant authorities to invest in properties abroad,” he said.

“This indicates that the transaction may be illegal as individuals can only invest overseas with the endorsement from the relevant authorities.”

Nik Nazmi said the circumstances surrounding the purchase and sale of the seven properties also suggests that PNSB had aided and abetted in the alleged illegal transaction.

“We urge former Mentri Besar Datuk Seri Dr Mohd Khir Toyo and the individual involved in the purchase and eventual sale of the properties to come forward and clear the matter in the interest of the state,” he added.

The purchase of the properties was made under Dr Khir’s name as he was the PNSB chairman at the time of the transaction.

When contacted, Dr Khir said that as far as he knew, the transaction was done according to regulations.

Nik Nazmi said the state government had now referred the matter to Bank Negara for advice to prevent the current state government and PNSB management from being implicated in the alleged fraudulent transaction. (The Star)

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Flash flood in KL left thousands stranded

KUALA LUMPUR: Thousands of motorists were stuck in massive traffic jams for more than two hours yesterday evening after a storm caused flash foods in various parts of the city.

Flood waters rose up to 2m at the junction of the Dynasty Hotel on Jalan Ipoh and in the Kampung Baru area.

Wat-er mess: Cars parked behind the PWTC in Kuala Lumpur submerged in muddy flood waters after a downpour yesterday evening. — AHMAD ASMADI

Some motorists had to abandon their cars in the middle of the road when the flood waters threatened to submerge their vehicles.

Among those stuck in the jam was singer Francessca Peters, who was in a car driven by her sister Bibiana.

They were stuck at the Jalan Ipoh-Jalan Pahang junction as police had closed the road because of the flood.

“Pedestrians had to wade through muddy water,” Bibiana, 40, said.

Among the other badly-hit areas were Jalan Kolam Air, Jalan Union, Jalan Parlimen, Jalan Gombak, Bulatan Dato Onn, Segambut and Jalan Tun Razak.

Residents at Jalan Kolam Air were badly affected as flood waters rose as high as one metre. A resident, Ravi Chandran, 43, said it was not the first time the area had been flooded. The residents live beside Sungai Batu and flash floods have been occurring for years.

According to the Kuala Lumpur City Hall flood information centre, the floods began at 5pm after a downpour.

Enforcement officer Chief Insp Lamli Musa said the flood waters began to recede after the Smart Tunnel was closed to traffic to enable flood operations.

“We sent our officers to the affected areas and police were also sent out to help ease traffic congestion,” he said. (TheStar)

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Raja Petra applies to disqualify Justice Paul

PUTRAJAYA: Blogger Raja Petra Raja Kamarudin has applied to the Federal Court to recuse Justice S. Augustine Paul from hearing the cross-appeal over his habeas corpus application.

His lead counsel Malik Imtiaz Sarwar said he had received instructions from his client yesterday to seek recusal of Justice Paul on two grounds.

Malik said Raja Petra was critical of Justice Paul when the judge handled the Datuk Seri Anwar Ibrahim corruption trial at High Court.

“Raja Petra had written about Justice Paul in the Internet. I have to show this court the concerned articles,” he told a three-man panel led by Federal Court judge Justice Nik Hashim Nik Ab Rahman.

Besides that, Malik said Justice Paul had also dismissed a habeas corpus application for Raja Petra in 2001 when he was earlier detained under the Internal Security Act (ISA) on grounds the online news portal editor was a threat to national security.

“Justice Paul had already formed a view against my client,” he said.

“It was later appealed to the Federal Court but my client had already been released,“ he added.

Malik said he was prepared to file his documents by today and that he did not intend to delay justice.

Justice Nik Hashim, who sat together with Justices Paul and Zulkefli Ahmad Makinudin, said the Bench would reconsider the earlier ruling and ordered Malik to file a formal application by today.

The panel set Feb 17 to hear the application and cross-appeal. (TheStar)

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IPP payments, gas price in the way

PETALING JAYA: While ministers have called for lower electricity tariffs, they can only be reduced if issues such as huge payments to independent power producers (IPPs) and the price of gas are re-negotiated, or Tenaga Nasional Bhd’s (TNB) bottomline will be greatly affected.

This is because payments to the IPPs make up 45% of TNB’s cost and fuel cost 15%, both totalling 60% of cost at the operational level. TNB paid IPPs over RM9bil in the last financial year ended Aug 31 (FY08) and, in FY09, it will swell to RM12bil.

Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said on Tuesday he would request for a study to be made to determine if his ministry would propose a tariff reduction. A day before that, International Trade and Industry Minister Tan Sri Muhyiddin Yassin called for tariffs to be decreased.

If the government wants to reduce electricity tariffs, it has to address the two big components of costs. One way to bring the biggest cost down was to start re-negotiations on the power purchase agreements (PPA) with the IPPs, an industry source said.

“It would be fair to reduce electricity rates if the price of gas and the IPP payments are reduced. It does not take a rocket scientist to work out the numbers,’’ he said.

The remaining 40% is made up of staff cost (10%), interest, depreciation and general expenses.

In making tariff reductions, the other issue to consider is TNB’s rather large reserve margin of over 40%. By June, this will rise to 47% when the 700MW Jimmah plant in Negri Sembilan comes onstream.

“With demand for electricity tapering down due to an economic slowdown and a huge reserve margin, TNB is going to be stretched if a cut in tariff is not compensated by a cut in IPP payments and lower gas tariffs,’’ said the source.

The Government said it was looking at reducing electricity tariffs before June since gas and coal prices had come down from their peak. June is when a review is originally planned but that date may be brought forward.

The Economic Planning Unit has been told to revisit the gas price for the energy sector to enable electricity tariffs to be lowered.

Gas price has halved from its June peak of RM40 per mmbtu to RM20 currently. Coal price is about US$75 per tonne, excluding freight and insurance.

TNB is currently paying a lower gas price than market rates to Petronas at RM14.31 per mmbtu. Gas price was last revised from RM6.40 per mmbtu (million British thermal units) to the current levels on June 1 following the rise in diesel and petrol prices.

For coal, TNB paid US$114 per tonne in its first quarter ended Nov 30, inclusive of freight and insurance.

TNB may have its woes of having to make big payouts to IPPs but any reduction in electricity rates will benefit the public and the industrial sector in the current economic slowdown.

While some analysts do not expect TNB to do well with a hike in tariff without a reduction in the price of gas and IPP payments, one believes a tariff reduction could help spur electricity demand and increase the competitiveness of Malaysia’s industrial sector.

Any gas price reduction would also help major consumers of gas, including petrochemical, steel, rubber gloves, ceramic tiles and glass industries, said OSK Research acting head Chris Eng.

He sees a possibility of an electricity tariff cut if gas price comes down.

“Otherwise, there is no justification for a reduction and Petronas will fight tooth and nail to keep the price of gas as it is since the price at RM14.31 per mmbtu is still lower than the market price of RM20,” he said.

Gas and coal price drops might be considered but Eng also believed the winds of change might be blowing strong enough for a tariff cut to be possible, especially when a change in the country’s leadership was imminent.

“We believe that calls for a price cut would also bolster popular sentiment for the Government while easing the burden of manufacturers and the public in the ongoing economic downturn,” he said.

But the long-term solution is really a fuel cost pass-through formula. That would provide clarity to TNB’s fuel cost structure and ensure it would not be subsidising users when gas and coal prices picked up again, said an analyst. (TheStar)

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How to become very rich in Malaysia -Malaysiakini

Connections and the ability to flip assets can get you going places

If you have ever wondered how to get rich in Malaysia – fabulously rich and very quickly at that – here’s a model that you might want to look at very closely. Not easy to do but if you do have a couple of projects in the bag, it will set you up for several lifetimes.

First you need connections – strong ones, the higher the better and if it goes right up to the top all the better. You need this because you need to convince the powers that be that your projects are good.

But you might ask if your projects are so good, why do you need connections? Why don’t you just go out and execute? Good questions, those. Here’s the answer - you need the state to give you something to do the deal that will help the nation.

Still can’t figure it out? See, it’s like this. You want to help the country, right? The country needs say a port. But you can’t build a port just like that. You need land to build a port. You tell the state or federal government you need land – cheap land, preferably free to build the port.

Or to take another example, you want to help the country by building a power plant. But look, you need land too and not only that you need the power to be sold. So you want an agreement – an iron-clad one to sell the power to Tenaga Nasional and to pass through all costs.

You see, that’s your reward as an entrepreneur – you get someone else to build the power plant, they guarantee the performance of the plant and someone else guarantees to buy your power and pay for all your costs. Nice deal? You bet. Billionaires have been made that way.

Or you may want to start an air hub. If you are persuasive enough, you can even convince the government to compulsorily acquire the land and sell it to you cheap. Once you have cheap land, lucrative contracts and concession agreements, the sky’s the limit.

Let’s take it a step further. If you want to realise the value of all of these things that you have and still keep control of them, it’s nice to have a listed company into which you can inject them. Inject one asset for shares and you gain control of the company.

And then inject others over the years for cash, taking the money out of the company. Who says you can’t have your cake and eat it too?

Do it right and get a flow of assets to inject in (you can do anything with discounted cash flow valuations – just change the discount rate, and presto, the value changes!), and you get a tidy flow of profits and cash into your personal accounts over the years. I mean a really tidy flow.

Just how much can you make this way, you ask? Why don’t you take a guess first? Did you say RM500mil? Guess again. RM1bil? How about five times that and you may be getting into the right order of magnitude.

One Tan Sri Syed Mokhtar Albukhary actually made some RM4.5bil that way - actually more because he still controls the listed company. (
MMC’s latest RM1.7bil deal irks investors7) We are not saying he is the only one, which makes your chances of joining the ranks better – if you are connected to high places that is.

But then again, if things change – and that’s still a big ‘if’ – you might not find it so easy anymore.

P. Gunasegaram is managing editor of The Star. He thinks it is high time we changed the way we did business

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Subang Jaya hit by flood

RETIREE Lim Sen Kiem, 68, may not be an expert on floods but he certainly knows what it is like to have flood waters threatening to enter one’s home.

Lim, who lives in USJ14/1F Subang Jaya, said the downpour last Thursday evening had brought a high volume of water to the large torrential drain in his neighbourhood, causing it to overflow.

According to Lim, the rain started at about 4pm and went on for an hour.

“I have been staying here for nearly 20 years and this is the first time I have seen floods at the road stretch. Perhaps the drain is clogged,” Lim said.

Several USJ and Subang Jaya residents who, like Lim, had witnessed last Thursday’s floods, said it was perhaps the worst that they have seen in the township.

The downpour went on to inundate roads in various parts of USJ and Subang Jaya, causing massive traffic jams.

Housewife Louise Fon, who stays in USJ 18, said she was driving back from Puchong when she was caught in a traffic crawl as the highway leading into USJ was flooded.

“I saw water and mud gushing from the construction sites onto the road. As soon as I turned into USJ, opposite the KFC restaurant and the Petronas petrol station. I saw the left turning at the traffic light junction already flooded,” the 36-year-old Fon said.

A mess: The living room of a house where flood waters had entered.

“Several cars were stranded and had broken down,” she said.

According to Fon, it was not the first time that the road there had been flooded as it happens quite often there.

“But the Thursday flood was probably the worst I’ve seen in USJ so far,” she said.

“I was lucky to have passed through that stretch but many drivers did not know how to drive through the waters and were caught,” she said.

Fon said the rain was exceptionally heavy that day, and the mud was flowing out of the construction sites very fast, thus causing the drains to overflow.

According to lecturer Moaz Yusuf Ahmad of SS17, the rainstorm had started near the Summit USJ and by the time the bus he was riding on reached the police station in USJ 9/8. and the whole area was flooded.


Taking notes: A MPSJ officer talking to residents in Subang Jaya/USJ where flash floods occurred during the downpour.
“When the bus turned into Persiaran Perpaduan, I could see the pool of water of about 12cm deep. The drains were overflowing and water from the Taipan USJ area was flowing over the side of the parking area,” Moaz said.

“It was perhaps one of the worst floods I had seen,” he said.

He attributed the problem to the poorly maintained drains.

Office worker Siti Hajar Yusof, 25, who works in the industrial area in USJ 1, said when she left her work area at about 5.30pm, the downpour had already started.

“Our office was not flooded but as soon as I got out to the stretch in front of the SJK (C) Chee Wen, I was stuck even though I was riding a motorbike,” Hajar said.

“Traffic congestion was everywhere and water was probably a foot high. The rain went on for another hour and it is perhaps the worst I’ve experienced,” she said.

Hajar blamed the flooding on the drainage system, saying that the water was unable to flow through properly.

Retiree Patrick Tan said a friend staying in USJ 14 had his plants kept in polystyrene boxes swept away by the flood waters.

Tan said he had previously experienced flash floods in the township, at several locations like the Persiaran Kewajipan/Perpaduan junction/traffic light, and the junction of Persiaran Murni/Bakti.

“The floods are due to the inadequate flow rate in the drains during heavy rain,” he said.

According to Tan, another reason for the flash floods in Subang Jaya and USJ is the concrete culvert that the Subang Jaya Municipal Council (MPSJ) had built at the road dividers and road shoulders.

“These culverts act like a barrier to trap the rain water which cannot flow out through the small drains,” Tan said.

Other areas flooded were the Kewajipan roundabout and the stretch of road in front of Mydin and Giant in USJ 1.

The MPSJ, however, said it had only received reports of floods in four locations under its jurisdiction that day — USJ 9, USJ 19, Batu 14 Puchong and USJ 1 (which it said is due to surface run-off).

MPSJ president Datuk Adnan Md Ikshan said the Subang station of the Meteorological Department recorded 49mm of rainfall in the area last Thursday.

“It was a flash flood, with the water subsiding quickly. As soon as our hotline team reached the sites, there was no more flood,” he said.

Adnan said the drain running along USJ 9 to USJ 19 was the responsibility of the Public Works Department.

On claims that drains were clogged, Adnan said most of the drains in Subang Jaya and USJ were well-maintained and that his team had confirmed this after their inspections.

“Maybe garbage did contribute to the floods, but they are not necessary clogged in drains and were probably just swept along the way,” he said. (TheStar)

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Petrol prices reduced to 15sen by today

PETALING JAYA: Petrol and diesel prices have been slashed by a further 15 sen per litre from today.

The new pump price for RON97 is now RM2 per litre while RON92 will be sold at RM1.90 per litre. Diesel will be at RM1.90 per litre.

The latest price cut, the fifth since August, was announced by Deputy Prime Minister Datuk Seri Najib Tun Razak yesterday.

Najib said the reduction was made in line with falling global petroleum prices.

Yesterday’s price of a barrel of crude was about US$56.

Najib, who is also Finance Minister, urged traders to lower prices of goods and services to fully benefit the people following the fuel reduction.

“The people should also continue to use petrol and diesel sparingly despite the lower price in line with the Government’s efficient energy consumption plan,” he said.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said the Government had kept its promise to reduce petrol prices.

Abdullah, who is on a working visit to Uzbekistan, said consumers should boycott outlets which refused to lower prices.

“I have been told that there is a non-governmental organisation spearheading this move. They have my support,” he told Malaysian reporters in the Uzbek capital Tashkent.

He said the people would be angry with the Government because prices of goods were still high.

“The Government had kept its promise but traders are not doing their part,” he said.

Abdullah said more NGOs should come forward and advise consumers where to shop.

“You can work together and get consumers to shun traders who pofiteer. We have to do this or else prices would not come down,” he added.

Meanwhile, petroleum dealers said they would feel the pinch with the latest fuel price reduction.

Malaysian Petroleum Dealers’ Association acting president Abdul Wahid Bidin said: “We hope this reduction will be the last. Otherwise, we won’t be able to plan ahead and doing business will be very difficult.” (TheStar)

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Sex for project scandal women found missing

IPOH: The Perak Religious Department has hit a snag while investigating a sex scandal allegedly involving former Perak Tengah district councillor Zul Hassan.

The department is having trouble finding the two Chinese nationals with whom Zul and businessman Fairul Azrim Ismail had admitted to having illicit sex.

Department director Datuk Jamry Sury said JAIP had been working with its Penang counterparts to get the names and addresses of the two women.

Unable to trace them, the religious authorities had instead been trying to track down their employer.

“It’s been very difficult to find them and I suspect that they may have gone back to China,” he said.

JAIP formed a committee to investigate the scandal after Zul and Fairul lodged reports in September against one Mohamad Imran Abdullah for procuring the women in Penang.

Zul, who is a PKR member, asked JAIP to take action against those who defamed and insulted him in connection with the scandal.

Both Zul and Fairul had recently claimed trial in the Sessions Court here to offences involving receiving sexual gratification to allegedly help Imran secure a project in Perak Tengah.

Yesterday, Jamry said the department would seek the Anti-Corruption Agency’s help in tracing the women to complete the probe.

Asked if the department had taken Imran’s statement, Jamry said the department would first leave that to the ACA.

Two Perak executive councillors are among six people, including Zul and Fairul, who have so far been charged with graft over a project in Perak Tengah.(TheStar)

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Petrol price should not be less than RM1.92/L - Shahrir

PETALING JAYA (29 Oct): The minimum price of petrol should be RM1.92 per litre even if the global oil price continues to fall, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said.

He said this would bring some stability to the retail price of petrol and minimise losses by petrol station owners.

Setting a minimum price would also enable the Government to reduce its subsidy on petrol if the global price fell further.

“The upper limit will be RM2.70 and it is my feeling that this is the optimal range,” Shahrir said when commenting on the losses petrol station dealers face whenever the price of petrol is reduced.

Ahmad Sarpur, a dealer in Johor, said dealers could lose between RM13,000 and RM25,000 each time petrol is reduced by 15 sen per litre.

“This is because there is a minimum order quantity of 21,000 litres that we must pay for immediately. There is no credit,” he said.

“If the petrol is delivered in the morning and the price is reduced at night, we have to sell petrol 15 sen cheaper than what we had paid for it.”

However, Shahrir said the Govern ment had been fair to the dealers saying: “We have not reduced their margin of 12 sen per litre after it was increased in June and we will try as much as we can to keep upcoming price reductions to 15 sen at a time.”

Shahrir said this meant a minimal loss of three sen per litre.

Ahmad pointed out that it was difficult for dealers to hedge on prices as they were not given prior notice of price changes. He said the dealers should be given three days’ warning before a price change to carry their optimal amount of stock.(TheStar)

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UMNO polls will not be reverted to December - PM

BEIJING(24Oct): The Umno party polls will be held in March next year as scheduled and not reverted to December, said Prime Minister Datuk Seri Abdullah Ahmad Badawi.

“We already have the transition plan and it will be in March next year,” he told reporters on Thursday when asked if the Umno general assembly would be brought to December.

It is learnt that some Umno divisions are against the party’s Supreme Council decision to postpone the general assembly to March.

Abdullah, who earlier launched Khazanah Nasional’s Beijing representative office here, arrived on Wednesday to attend the two-day Seventh Asia-Europe Meeting (Asem).

Abdullah’s official programme includes the Asean Leaders’ Working Dinner and Asean Plus Three Leaders’ Breakfast Meeting on the Financial Crisis.

Abdullah will hold talks with Philippine President Gloria Macapagal-Arroyo, Thai Prime Minister Somchai Wongsawat, Pakistani Prime Minister Syed Yousuf Raza Gilani, Cypriot President Demetris Christofias and Chinese Premier Wen Jiabao.

Established in 1996, Asem is an informal process of dialogue and cooperation between its 45 members, comprising the 10 Asean member nations, China, Japan, South Korea, India, Mongolia, Pakistan, and European Union members.

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Musa Hitam - UMNO is not popular anymore

KUALA LUMPUR (23 Oct): Umno is in dire need of a drastic change and young blood with new ideas are the plausible solution, said former deputy prime minister Tun Musa Hitam.

“I understand that the experience of seniors are needed for top posts like president or vice-president, but other than that, they should choose the younger ones,” he said.

Speaking his mind: Musa (right) speaking during the Bridges – Dialogues Towards a Culture of Peace launch while International Peace Foundation chairman Uwe Morawetz looks on in Kuala Lumpur yesterday.

Musa said the party had been raising the same issues which were raised 20 or 30 years ago, and bickering about emotional rather than substantial issues, such as the economy.

“Umno is already over 61 years old and is experiencing penyakit tua (old age sickness) which cannot be remedied by senior citizens but rather the younger generation with new ideas,” he said after launching the Bridges “ Dialogues Towards a Culture of Peace forum here yesterday.

He also claimed that Umno was “too introverted” by focusing on its own problems and looking for acceptance among its own members, but not the rakyat, whose perceptions would determine its future.

“It is important for Umno to realise that it has lost its popularity because of public opinion.

“The party has many problems that it cannot rectify, like corruption, accountability issues and abuse of power,” he said.

“The new generation will not accept wholesale what politicians are saying because they don’t accept the politicians,” he said.

Musa believed that certain politicians were fighting for their own benefit rather than for the benefit of the larger community.

“What the nation wants is a party that is sensitive to their needs and is one step ahead of the citizens’ thinking,” he said.

“These are hard words, I know, but I will only say it once. When I say it, I mean it and I’ve been thinking long and hard about it,” said Musa. (TheStar)

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Petrol prices reduced to 20sen by Wednesday

KUALA LUMPUR: Petrol prices will be reduced by a further 10sen to 20sen from Wednesday.

RON 97 petrol is reduced by 15sen to RM2.30; RON 92 petrol is reduced by 10sen to RM2.20; and diesel is reduced by 20sen to RM2.20.

A post on the Prime Minister's Office website (wwww.pmo.gov.my) said the decision was made following the big fall in the global oil price.

"The lowering of the fuel prices is also made to speed up the reduction of retail prices so that the people will be able to enjoy the benefits sooner," the post added.

The statement was signed by Prime Minister Datuk Seri Abdullah Ahmad Badawi.

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