Media Statements

308 posts

Why is our government paying rental of RM29.2 billion on land which it already owns?

Media Statement by Dr. Ong Kian Ming, MP for Serdang, on the 18th of November 2014

The most recent Auditor General’s 2013 Report highlighted the fact that a little known Ministry of Finance owned company, Pembinaan PFI Sdn Bhd, had racked up debts of RM27.9 billion making it the third most indebted government owned company after Petronas and Khazanah.

Pembinaan PFI’s funding comes from loans from the Employees Provident Fund (EPF). To pay back the EPF for the first RM20b of worth of loans, the government structured a complicated and mind-boggling deal. The Federal Lands Commission (FLC) signed an agreement where it would lease PFI 186 plots of land all over Malaysia. FLC would then sub-lease this land from PFI by paying rental for land which the FLC already owns! (See Appendix 1 for first two pages of the rental agreement)

In other words, the government is sub-leasing land which it itself owns by paying rental! It’s like me leasing an apartment which I already own to my wife and then sub-leasing it from her by paying her rental!

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The government is trying to hide RM30b of spending by Pembinaan PFI Sdn Bhd which was had the 3rd largest liability in 2012 among all government owned companies

Media Statement by Dr. Ong Kian Ming, MP for Serdang, on the 13th of November, 2014

According to the latest Auditor General Report 2014, Series 3, a little known Ministry of Finance owned company – Pembinaan PFI Sdn Bhd – had racked up liabilities of RM27.8 billion as of 2012 making it, then, the company with the 3rd largest liability among all government owned companies after Petronas and Khazanah (See Figure 1 below).1

Figure 1: Top Three Government Owned Companies with the largest liabilities as of 2012

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Why did the Ministry of Urban-Well Being, Housing and Local Government give a new 3 year contract worth RM3.56 million to the same company, XCN Technology, to continue to mismanage the Pangkor incinerator?

Media Statement by Dr. Ong Kian Ming, MP for Serdang, on the 12th of November, 2014

The recently released report by the Parliamentary Accounts Committee (PAC) on the construction and management of four small scale waste incinerators in Pangkor, Langkawi, Cameron Highlands and Pulau Tioman was a damning indictment on the authorities involved in approving the contracts for the construction of these incinerators.

The PAC found that the Ministry had failed in its responsibility to do the proper due diligence in selecting the technology proposed by XCNT especially given that past prototypes used by the same company in the Kuala Terengganu City Council (MPKT) had failed and the prototype in UiTM Shah Alam was only burning waste paper. The PAC also found that the experts from UTM and from the Malaysian Industry Government Group of High Technology (MiGHT) also failed their responsibility in evaluation XCNT’s technology.

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