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Monday, January 30, 2012

60-year highway robbery! Another 'Rosemajib' deal?

Sulaiman Kamal | 5:05 AM | | | | | Best Blogger Tips

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FROM THE BLOGS "Kumpulan Xxxx has officially obtained the contract to build a RM7.07 billion highway linking Banting (Selangor) and Taiping (Perak). Xxxx said its 64.2 per cent-owned Xxxx obtained an approval letter yesterday from the Public Private Partnership Unit of the Prime Minister’s Department.
Releasing details of the project yesterday, Xxxx said the West Coast Expressway will cover 316km. Of this, 224km will be tolled, while 92km will be toll-free. The project is based on build-operate-transfer with a concession period of 60 years, Xxxx said in a statement to Bursa Malaysia yesterday. Xxxx has secured a government support loan (GSL) of RM2.24 billion to “enhance the viability of the project”. The soft loan will kick off in 2013 at an interest rate of 4.0 per cent per year and an interest subsidy of up to 3.0 per cent from commercial loans for a period of 22 years.

The terms of the GSL and interest subsidy will be finalised by Xxxx with the Ministry of Finance, Xxxx said. It noted that toll revenue in excess of an agreed traffic volume will be shared on the basis of 70:30 between the government and Xxxx until full settlement of the GSL and subsequently, 30:70 after the settlement of the GSL. The government will bear some RM980 million cost to acquire land along the highway construction.
Xxxx, meanwhile, will call for open tenders for main construction works. Proper concession agreement will be signed between Xxxx and the Works Ministry upon clearance from the Attorney General."
Well, let's analyse this Public Private Partnership deal approved by none other than our Prime Minister, Najib Tun Razak, recent recipient of the 'Distinguished Lifetime Achievement Award" by the bootlicking and brown-tongued World Chinese Economic Forum (WCEF). Don't all rush to the toilet to puke at once. Please.
1. It matters not a hoot who Xxxx is since it's a direct negotiation contract i.e. a guaranteed crony deal
2. The construction cost of $7.07 billion works out at $22 million per kilometer. Why? The international norm is about $10 million. It is a rule of thumb in Malaysia that where huge $Billion so-called "privatisation" (locally dubbed "piratisation") contracts are awarded by direct negotiation, especially by the Economic Plundering Unit/PM's Department or Ministry of Defence, the real cost is about 1/3 to 1/2 less.
Why 60-years? (P.S. Rosmah is also 60 years old!)
By that reckoning, $22/Km is spot on! Hooray! Well done, Rosemajib!
Now, where does the differential of 1/3 to 1/2 go? To buy more US$200,000 per Birkin Handbags and fling it on shopping jaunts in Sydney, Dubai, London and New York, perhaps? Little wonder Malaysian fraudtrepreneurs and sovereign investment funds are all falling over themselves snapping up failed English football clubs, F1 franchises, Turkish healthcare companies, Singapore, London, USA and Oz real estate, (overpriced) banks in Indonesia etc. Or maybe to finance the $1 Trillion e@con.o,my god! transformational program policy of "You scratch my balls, I'll scratch yours. No we don't bribe for or buy votes"?
3. The real cost is of course $7.07 billion + $980 million land cost + interest subsidised by Government at 4% on GSL of $2.24 billion + further Government subsidy of 3% on commercial loans taken by Xxx. Do remember the last time the Government "supported" a "piratised" loan, the market took it to be a guarantee and today we, the over-flogged Malaysian taxpayer, are left holding PKFZ's $12 billion liability, while looking for space to rub our over-scratched two orbs in disgust as the former MCA Chief Ling Liong Sik is being prosecuted for "misleading his (wooden) cabinet colleagues".
4. Why a-60 year concession to Xxxx? This is a world record for any highway project. Show us the numbers. Don't hide it under the Official Secrets Act. Why are you PM, burdening us, our children and theirs? I am especially keen to discover what the projected traffic flow is. We are sick to our stomachs of you Plunderers conjuring up stratospheric stats and then passing the buck to taxpayer for compulsory compensation to the tune of $Billions when unrealistic projections cannot/will never be met.
5. "Xxxx, meanwhile, will call for open tenders for main construction works." Xxxx is a real estate development company whose finances are dodgy and led by a businessman whose $391 million liability to the Selangor Government had to be restructured by Menteri Besar Khalid. So, in the interest of transparency, dear PM, please advise us why Xxxx was awarded this toll highway construction contract, one where the size of the project comes in at less than half of the NS Highway and at more than 3 times (300%) its cost?
And if Xxxx is going to sub-contract this >$8 billion contract even with so much Government subsidy, why can't the Government do it 100% by itself through the PWD/Malaysian Highway Authority AND NOT BURDEN THE RAKYAT AGAIN AND AGAIN WITH MORE AND MORE TOLLS!!? Wtf does Government exist for if public works such as these are not undertaken fully by itself? Before "piratisation" became UMNO/BN's calling card, our PWD used to handle the A-Z of these jobs. Why can't they do it now?
5. Who studied the viability of this project and recommended it? The Plus NS Highway is only problematical during festive seasons and long week-end holidays. So, who says the NS highway is over-clogged and we need this Banting-Taiping link at what appears to be a massive fraudulent/padded give away contract to dodgy parties? Surely maintaining the old trunk roads well and managing traffic control during holiday peaks are better and more economical options? If it cannot come in at under $2 billion, ditch it now!
6. If Xxxx should fail to complete the project and collapses financially, what safeguards have you plunderers in Government put in place to make sure the taxpayers will not be subjected to another fcuking bailout? Your Press release is silent on this issue? Why? Declassify all documents now.
Since Tony Pua and the Opposition are monitoring these dodgy deals, I urge them to send a clear and powerful message to the Civil Service, Ministers and crony fraudtrepreneurs that when Pakatan comes into power ALL these shitty deals will be re-examined and anyone found guilty of fraud, CBT, embezzlement and corruption will be prosecuted and put behind bars for 60 years!
More dirt still
And while we are at it, below are some more deals involving Government, Government Linked (Losing) Companies and the private sector that deserve closer scrutiny:
1. $3.9 billion extension to LCTT based on projected passenger traffic of 45 million by 2020, based on off the cuff estimates provided by TF of AA. Did MAHB call for open tender and who were the parties awarded the contracts(s)? And is it true LCCT has two Control Towers?
2. $6 billion patrol boats contract ballooning to $9 billion. Do our patrol boats need laser guided missile systems at all? What for, to shoot at illegal immigrants?
3. $7.8 billion armoured vehicles contract sub-contracted to Turkey for $1.5 billion.
4. Sime Darby's $780 million acquisition of E&O Plc where massive insider dealing has been alleged against others and the husband of the SC's chairman, and not investigated thoroughly.
5. Proceeds from $250 million Government Loan to National Feedlot Corporation being used to acquire expensive cars, condos and land.
6. 'Not Commission" payment of $540 million paid to Razak Baginda's company for delivery of 2 Scorpene Submarines costing $6.7 billion and $370 million to Adam Adib's company for delivery of MiG jet fighters.


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