From Malaysian Insiders! Wow! We are in deep shit!

Putrajaya in cover-up of obscure firm’s RM30 billion spending, says DAP

Published: 13 November 2014
DAP lawmaker Ong Kian Ming has accused Putrajaya of trying to conceal some RM30 billion worth of spending by a little-known company owned by the Finance Ministry. -

Ong (pic) referred to the Auditor-General's Report 2013, which showed that Pembinaan PFI Sdn Bhd had racked up liabilities of RM27.8 billion as of 2012, making it the 3rd largest liability among government-owned companies after Petronas and Khazanah Nasional.

"However, unlike Petronas or Khazanah, which were the two most profitable government owned companies in 2012, Pembinaan PFI Sdn Bhd does not have its own revenue stream and hence, profit generation capabilities," the Serdang MP said in a statement today.

"According to its company filings, the nature of Pembinaan PFI’s business is to 'source for financing to undertake government projects'.

A report by The Edge had revealed that PFI was set up to disburse RM20 billion worth of spending under the 9th Malaysian Plan (2006-2010) and that contracts under PFI would be preferably given to small-scale Bumiputera contractors.

"Up till today, there has been very little transparency about how exactly this RM20b has been spent and also the terms of the concession agreements between the contractors and the governments for the rental or lease of the buildings constructed under PFI," said Ong.

The third series of the A-G's report this year, Ong noted, had highlighted a second round of funding worth RM10 billion to PFI, of which RM7.57 billion had been set aside for 16 ministries or agencies to carry out 313 projects.

The report showed that as of December 31, 2013, a total of RM4.9 billion was spent from this second tranche of funding.

"According to the company filings of Pembinaan PFI Sdn Bhd, all of its borrowings come from the Employees Provident Fund (EPF)," Ong said.

"What is more worrying is the fact that the government has tried to hide this spending from the budget.

"It set up a convoluted agreement whereby 186 parcels of land owned by the Federal Lands Commissioner was leased to PFI after which the Federal Lands Commissioner was asked to sub-lease this land back from PFI with half yearly payments from 2012 to 2027 totalling RM29.2billion," he added.

He said PFI would then use these payments it got from sub-leasing the land to service the interest payments to EPF.

"This land lease agreement is important because the land ‘owned’ by PFI is listed as part of its assets. This is why the recent A-G’s report also showed PFI to have the third largest asset holdings among all government owned companies, after Petronas and Khazanah.

"In reality, these ‘assets’ are merely land holdings which PFI itself does not really own but were leased from the Federal Lands Commission," he said, adding that Putrajaya should disclose the full list of projects and the cost of each one awarded by PFI to ensure full transparency. – November 13, 2014.

Malaysia needs more heroes like Tony Pua to help expose scandals like this!

Najib's greatest Scandal that will bankrupt Malaysia!??

Auditor Reports makes removal of fuel subsidies insignificant.

The BN govt are really like robbers that rob the rich to give to the poor. The BN govt will burden the poor rakyat with GST and Fuel subsidy removal and the squeezing of those who can't pay back their PTPTN but look at the recent Auditor General Report. So much money lost due to stupidity and corruption. Makes me sick!

1. RM663mil later, schools plagued by slow Internet

AUDIT REPORT After RM663 million of taxpayers’ funds were poured into introducing high speed broadband networks in schools, students have found themselves stuck with a sluggish Internet as the project comes to its conclusion.

Also, according to the Auditor-General's Report 2013, the 1Bestari Net project, which also includes a virtual learning environment (VLE), that cost the bulk of the spending, is also rarely used by teachers and students.

Under the contract, 9,191 schools were to be supplied with a broadband network with a minimum speed of 4Mbps and up to 20Mbps.

A small number of schools, 698 in total, were to be equipped with broadband that has a minimum speed of 2Mbps and up to 4Mbps.

However, an audit of 46 schools found 41 of them or 89.1 percent, only obtained speeds between 0.2Mbps to 3.62 Mbps.

"The broadband speed performance is too slow to support VLE if it involves 30 to 40 users at a time," it said.

In another feedback survey of 491 schools, it found 297 schools (68.9 percent) had a speed below the required 4-10Mbps and another 48 schools (80 percent) were under the required 2-4Mbps speed.

Only 146 (29.4 percent) of schools achieved their required speed.

According to the breakdown of the RM663 million contract granted to YTL Communications Sdn Bhd, a total of RM87.32 million was allocated for broadband with speeds of 4-10Mbps and RM5.29 million for speeds of 2-4Mbps.



A total of RM250.5 million is also allocated for the VLE service and another RM262.81 million is to maintain and management the VLE applications in an online learning platform.

However, the audit report found less than a third of schools used the VLE platform in March this year.

"In the same period, the audit analysis found the usage of VLE based on students', teachers' and parents' logins in schools throughout Malaysia is very low," it said.

According to the report's statistics, during that period, student logins was at 0.17 to 0.63 percent, teachers  at 0.57 to 4.69 percent and parents at 0.01 to 0.03 percent.

2. Medicine worth RM1.2mil stolen from KL Hospital

AUDIT REPORT The Auditor-General’s Report 2013 has revealed that medicine stocks worth RM1.21 million were stolen from Kuala Lumpur Hospital (HKL).

It also said Penang Hospital (HPP) lost RM240,000 worth of medicine stocks due to theft.

In November 2011, 68 medicine stocks amounting to RM1.21 million were stolen from the stores of the HKL’s neuroscience as well as urology and nephrology pharmacies.

A police report on the incident was lodged on Dec 27, 2011.

Part of the stolen medicine stocks, worth RM740,000, was found in January 2012.

Based on investigation conducted by HKL, the theft was committed by someone from the inside who constantly dealt with the staff of the store and as such, knows the weaknesses in the store management.

The case was decided to be written-off while disciplinary action will only be taken against civil servants after police investigations are completes, the Audit Report noted.  

In December 2013, a Shimadzu control panel was stolen from the radiography room of the diagnostic imagery department of HKL.

The control panel was one of the components of the general x-ray equipment, which is worth RM300,000.

“As the control panel had been stolen, the general x-ray equipment can no longer be used,” the Audit Report states.

It also noted how there were recurring cases of four types of assets, namely air-conditioning compressors, syringe pump, physiologic monitoring system and pulse oxymetres, being lost.

A total of 97 units of these assets, worth RM610,000, were lost.

Based on safety inspection reports prepared by HKL’s security division, the urology and nephrology department as well as the physiotherapy department, outpatient treatment centre, paediatric institute and forensics institute are high risk areas where air conditioning compressors constantly go missing.

As for the theft that occurred in Penang Hospital, 694 medicine stocks worth RM242,125 were stolen in February 2013.

A final report was issued in July 2013 and the hospital is awaiting further action from the relevant authorities.

3. Officer who stole almost RM1mil let off

 AUDIT REPORT A government officer responsible for embezzling close to RM1 million from the Accountant-General’s Department of Malaysia (JANM) was let off without any criminal action, the Auditor-General's Report 2013 states.

The third series of the report tabled in Parliament today says the officer made off with RM995,031 in unclaimed money through falsification of documents, which was only discovered in March 2011.

"Legal action has yet to be taken against an officer who committed fraud and misappropriation between Aug 27, 2008, and Dec 21, 2010, involving RM995,031 in unclaimed money, despite police reports lodged on March 3, 2011, and March 10, 2011," it states.

A report was also lodged with the Malaysian Anti-Corruption Commission (MACC) on March 11, 2011.

JANM is responsible for collecting and overseeing money that has not been claimed in bank accounts for seven years, or funds that are meant to be disbursed to recipients but went unclaimed for more than a year.

The inaction is despite a June 22, 2012, letter from the police Commercial Crime Investigation Department, which said it had recommended to the Attorney-General's Chambers that the officer be charged under Section 477A of the Penal Code.

The section concerns the falsification of accounts and provides punishment of up to seven years' jail, a fine, or both upon conviction.

An investigation committee also found that the officer, a Grade N17 administrative clerk attached with JANM's Trust and Securities Management Division (BPAS), was suspected of being directly responsible for the missing funds.

'Sack' recommendation

The investigation committee recommended that the officer be sacked and a surcharge (fine) be imposed on the suspect for the lost funds.

However, the audit report found the officer was only transferred to the Accounting Development and Management Division, effective Jan 9, 2012.

According to the breakdown, the officer had falsified supporting documents for RM827,781.46 in unclaimed money, which were considered as "improper payment".

Another RM106,955.35 were disbursed to various names, but with to the same bank account number.

Also, RM60,294.50 could not be established as to whether the sum was made of genuine payments.

The entire amount was transferred electronically.

In March 2013, the audit report said the Finance Ministry had agreed to write off the RM995,031.41 lost but ordered that disciplinary action and a surcharge be imposed on the officer.

The audit report attributed the incident took place because BPAS had failed to abide by certain safeguards, such as requiring proper verification of documents.

"AS a result, the government lost almost RM2 million (the missing RM995,031.41 and another RM995,031.41 to write off the loss).

"The officer who committed the fraud and misappropriation should also be imposed a sucharge under Section 18(b) of the Financial Procedure Act 1957," it said.

According to this section, the government can impose a fine on the officer, up to a maximum sum matching the total lost funds.

4. RM12mil pension paid to dead army veterans

he Defence Ministry has continued paying pension to army veterans even after they have died, causing the government to lose almost RM12 million.

According to the Auditor-General's Report 2013, the Veteran Affairs Department (JHEV) had paid out RM11.94 million in pension for 3,786 veterans who had passed away between 2011 and 2013.

Upon realising the mistake, the department had moved to recover the amount but had thus far only managed to get back RM1.69 million or 14.2 percent.

The third series of the audit report, the last for this year, was tabled in Parliament this morning.

"JHEV should continuously conduct checks on the latest status of pension recipients with the National Registration Department (NRD) to avoid payment to pension recipients who have died," said the report.

In its reply dated Sept 22, JHEV said the department had previously relied on the next of kin to inform whether a pension recipient had passed away.

"If there is no official notification, then the pension will continue to be paid," it said.

However, JHEV said it has tasked 13 officers to update the data of some 10,000 recipients and assured that it will be matched with the NRD data.

It added the updating process is expected to be completed by 2015.

The audit report also advised JHEV to come up with a clearer veteran benefit scheme to facilitate applications and to revise its assistance to an amount that matches present cost of living.

This is after a survey of some veterans found that they were living in poverty.

5. MP wants RM93mil Youth Day audit made public

A PAS MP today demanded that the audit conducted on the overall management of the annual Youth Day celebrations in Putrajaya, which he claimed had cost RM93 million the last four years since 2011, be made public.

Pokok Sena MP Mahfuz Omar said the annual cost of the event has been rising steadily, from RM16 million spent for the 2011 Youth Day to RM30 million estimated to have been spent on the 2014 event.

Yesterday, Minister in the Prime Minister's Department Shahidan Kassim (right) admitted that an audit was done on the overall management of the annual event, which has been hit with controversy.

However, Shahidan said, the details will not be revealed to the public as the Youth and Sports Ministry has decided to take stock of the recommendations in the audit and make the necessary amendments.

"I don't see what the problem is here. In every audit, there is a note, which is a reply by the ministry or the relevant agency. Why can't it be made public?" Mahfuz told reporters in the Parliament lobby.

"In 2011, Parliament set a budget of RM10 million for the event but the final event exceeded the budget. People deserve to know how the money was managed and what are the corrections that the ministry will make," he said.

"Because until now, I had not seen any improvement on how the program is being run," he added.

In the 2012 edition, the presence of K-Pop artists attracted controversy followed by confusion on who footed the artists' RM1.6 million bill.

A drag race accident in the same year also left 17 people injured.

6. Incinerator technology unproven, says PAC

The technology used for the construction of five incinerators across the country costing RM200 million was unproven while the contractor was unqualified and should have never been chosen through direct tender, the Public Accounts Committee (PAC) said.

In its report on the incinerator project which was highlighted in the 2012 audit report, which was tabled in Parliament today, PAC criticised the Housing and Local Government Ministry for the manner in which it evaluated the qualification of XCN Technology and the technology the company had proposed to use.

PAC chairperson Nur Jazlan Mohamed (left) said that all the four completed incinerators in Langkawi, Pulau Pangkor, Pulau Tioman, and Cameron Highlands are not functioning “according to specifications” and a proposed fifth one in Labuan was aborted.

7. Corruption, animal cruelty plague Zoo Negara

Things have taken for the worse, as alleged corruption and maladministration and terrible animal welfare plagues Zoo Negara, says Bukit Bendera MP Zairil Khir Johari.

Not only will will visitors be disappointed with the horrible state the animals are in, Zairil said, the zoo has also not seen an experienced zoologist in over a decade.

“I have (also) received information that reports were lodged against the management of the zoo with the Malaysian Anti-Corruption Commission (MACC), alleging corruption and maladministration,” he said in a statement today.

Minister in the Prime Minister's Department, Paul Low, had confirmed the existence of the reports to a question in Parliament from Zairil, but Low had given a very ambiguous reply.

“According to his (Low) reply dated Nov 4, the MACC has indeed received information on this issue, but that is is “currently being verified,” Zairil said.

In fact, even with continuous government subsidies, with RM10.1 million allocated to Zoo Negara by the federal government last year, the drastic drop in visitor numbers was increasing, he said.

Despite the allocation of RM25 million for the new panda exhibithousing the two pandas, Xing Xing and Liang Liang, visitors continued to decline, with most people complaining about the exorbitant fees imposed.

Around 700,000 visitors a year now

“While the zoo was able to record one million visitors almost 30 years ago, current visitor numbers hover around 600,000 to 700,000 a year, according to its Zoo Negara vice-president Rosly @Rahmat Ahmat Lana.

“Despite continuous support from the government and higher entry fees, why hasn't Zoo Negara improve significantly? It would appear that something is wrong somewhere,” said Zairil, who is DAP national publicity assistant secretary.

He also cited a news report by the news portal The Ant Daily on the harsh and inhumane treatment of the animals housed there.

“With an abundance of wildlife, we should have a national zoo that is capable of reflecting this heritage. It should not only be a mere tourist attraction or wildlife conservatory.

“It is a shame that our national zoo is in such a sorry state when our urban neighbour Singapore is able to boast a zoo that has made it into CNN's 'Top 5 Zoos in the World,” Zairil said.

Zoo Negara was established in 1963 on 110 acres of land in Ulu Klang, Kuala Lumpur. It started out with 89 species of exhibits and has grown to house more than 5,137 specimens from 476 species of mammals, birds, reptiles, amphibians and fish.

The zoo also currently charges RM10 for children below 12 years of age, with an additional RM10 to see the pandas and RM50 for adults, which include entry and panda viewing fee.

8. Rafizi rues 1MDB's colossal RM42bil debt

PKR's Pandan MP Rafizi Ramli today raised further concerns about 1Malaysia Development Berhad (1MDB)'s financial performance after pointing out that the firm’s debts had now reached RM42 billion, according to its latest financial statement.

"The net loss of RM665 million is such a huge loss considering our economic situation," he said.

"1MDB's financial performance is much worse than initially expected," he added.

He also criticised the company for re-valuing its assets that enables that net loss to seem less than the actual amount.

"In 2013, 1MDB's assets had been revaluated and an increase of RM 2.74 billion was marked as profit. If not for this, 1MDB would have registered a loss of RM 1.96 billion," he said.

"In 2014, 1MDB had revaluated its assets and registered an appreciation value of RM 897 million. If not for this, it would have registered a RM 1.56 billion loss," he added.

He also said that 1MDB's operating expenditure and interest payments had increased to RM 3.76 billion, which is a 52 percent increase from the previous year's financial statement, and almost equivalent to the RM 4 billion allocation for the Bantuan Rakyat 1Malaysia (BR1M) program.

WHILE ALL THIS IS HAPPENING, ALL OUR IDIOT BN MP ARE WORRIED ABOUT IS BEING TOUCH IN THE AIRPORTS!!! DUMBASS!

JB highway the most expensive, says MP

The Eastern Dispersal Link (EDL) is the most expensive highway in Malaysia, both in terms of construction cost and toll collection, a DAP MP said today.

Kulai MP Teo Nie Ching said that EDL had cost RM148.15 million per kilometre, and will also end up making most profit at the end of its concession term when compared with other highways.

The EDL, built by Malaysian Resources Corporation Bhd (MRCB) will reap RM4.3 billion in toll collection against the cost of RM1.2 billion to build it.

However, Teo said, the Ampang-KL Elevated Highway will only collect RM949 million in toll against a RM751 million cost.

The Guthrie Corridor Expressway will collect RM1.012 billion against a RM501 million cost, she added.

“Highway construction is not a charity and we acknowledge that concessionaire companies are not non-profit organisations. However, there must be a limit to profit reaping,” she said.

“Why does it seem that MRCB is allowed to collect more toll than other concessionaire companies?” she asked.

She said that MRCB will be making the most profit compared to the other highways, without taking into account future traffic volume and toll hikes.

“What was the mechanism used to calculate toll rate and profit for the concessionaire companies? The government must be transparent in handling toll hike and all concession agreements should be made public,” she said.