Thesun 2009-02-25 Page01 A Fair Professional Macc

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No. 4704 PP 2644/12/2009 (023092)

Wednesday February 25, 2009

TELLING IT AS IT IS

» Open tender for jobs over RM500k pg2

Merlin reinvented

www.sun2surf.com

» World markets tumble pg16

Business

pg18

Discrepancies in PNSB’s Saudi property purchase

SHAH ALAM: The Mentri Besar Incorporated (MBI), a state government subsidiary, said yesterday there were discrepancies in Permodalan Negeri Selangor Berhad’s (PNSB) purchase of properties of Al Marwa Tower Makkah, Saudi Arabia in 2007. The Mentri Besar’s Office said in a statement yesterday the discrepancies were detected by external auditors and brought to the attention of MBI’s current board which has appointed advisers to evaluate expenses of the state government’s subsidiaries. The discrepancies were uncovered amid concerns by MBI over PNSB’s delay in finalising the 2007 financial accounts. The statement said that according to the PNSB Directors Circular Resolution dated Sept 14, 2007, PNSB had approved for the purchase of five units of properties amounting to RM8,352,427.66.

However, records showed that PNSB had between Sept 17, 2007 and Sept 19, 2007 transferred RM25,603,545 to Saudi Arabia for 12 units of properties. Between Sept 25, 2007 and Oct 3, 2007 PNSB received cheques amounting to RM17,251,092 from an individual – said to be for the purchase of seven units from PNSB at the price PNSB had paid for. No official receipt was issued to acknowledge it. It has come to the attention of board of directors this year that PNSB prepared and signed four cheques amounting to RM8,000,205.20 to an individual, who is the same person who had earlier handed over cheques to PNSB amounting to RM17,251,032 stated above. However, three of the four cheques prepared and signed by authorised signatories were then cancelled.

The fourth cheque amounting RM2 million was released and banked in into the account of the individual. PNSB then arranged with the bank to stop payment. “Between the date of the acquisition of the additional seven units making a total of 12 units and the disposal of the seven units leaving five units in the hand of PNSB, there was no board of directors meeting or Board of Directors Circular Resolution for the transaction. “Up to the point of issuance and cancellation of cheques to the individual, no board minutes or circular resolution were made,” said the statement. “It should be noted that the acquisition was made in the name of the then PNSB chairman Datuk Sri Dr Mohamad Khir Toyo as Saudi requirement that properties within the Mecca must be in the name of Muslim individuals.”

At the board of directors meeting in December 2007, Khir disclosed that the properties were in his name but assured the directors he would not be making any claim over them. However, there was no mention of the exact number of units held by him. “The above actions are certainly puzzling. Why did PNSB paid more than RM25 million when the board only approved about RM8 million for five units? “Why did it then accept about RM17 million – said to be for the sale of the seven units? Why did it then attempt to re-purchase the units it had sold off?” The statement said Mentri Besar Tan Sri Abdul Khalid Ibrahim, the current MBI chairman, intends to find the answers to the above questions and will not hesitate to take strong action should there be any criminality involved.

A fair, professional MACC UALA LUMPUR: Prime Minister Datuk Seri Abdullah Ahmad Badawi says it is paramount for the Malaysian Anti-Corruption Commission (MACC) to be fair and professional, and seen to be so, in all its dealings. As such he hoped that each and every officer regardless of position or rank, would carry out his or her duties to the highest standard of professionalism. In this context, he stressed that dedication, impartiality and fairness must be part and parcel of their job. “In that sense, your conduct, while on duty or even off duty, must always be beyond reproach and in conformity with the laws of the land. If not, all our efforts thus far to implement institutional reforms may come to naught,” he said when launching the MACC. The MACC came into force on Jan 1 to replace the role previously carried out by the Anti-Corruption Agency. It has been given more bite and independence in its mission to fight all forms of corruption, abuse of power and malpractice. Abdullah said that the government did not want the efforts to set up the MACC to be regarded as mere rhetoric or a rebranding exercise. “Without significant changes to the structure and improvement in its effectiveness, there are bound to be perceptions about the MACC being impartial, a toothless tiger, selective in its enforcement, slow in taking action and unprofessional in its investigations. “These perceptions will, in some ways, mar the image of the MACC,” he said before presenting appoint-

EPAPIX

ABDULLAH WANTS GRAFT-BUSTING BODY TO BE WORLD CLASS

On the march again ...

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Buddhist monk joins thousands of protesters to cross a barricade set up by anti-riot police during a massive rally to besiege the Government House in Bangkok yesterday. Thousands of exiled former premier Thaksin Shinawatra’s supporters clad in red marched on Government House, as they did last year, in an effort to highlight what they see as the illegitimacy of the current administration. They called for the resignation of Prime Minister Abhisit Vejjajiva and his two-month-old coalition government days before it hosts an Asean summit in Hua Hin, outside Bangkok.

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Full report page 8

ment letters to 42 members of five panels and boards set up to oversee and coordinate the MACC’s operations (full list on page 2). Abdullah’s remarks come in the wake of public outcry over MACC chief Datuk Seri Ahmad Said Hamdan’s statement last Friday that there was “good and strong evidence” Selangor Mentri Besar Tan Sri Khalid Ibrahim had abused his powers over maintenance of his personal vehicle and purchase of 46 cows for Aidiladha Among the 42 appointees are

former Chief Justice of Malaya Tun Abdul Hamid Mohamad, Suhakam commissioner Tan Sri Simon Sipaun, Transparency InternationalMalaysia president Tan Sri Ramon Navaratnam and Malaysian Institute of Corporate Governance president Tan Sri Megat Najmuddin Megat Khas. Others include former judges, academics, lawyers, businessmen, accountants and ex-civil servants. Abdullah said he wanted the MACC to become a world-class graftbusting organisation and that it was important for it to be “outstanding

in the country as well as the region” and for it to be respected by all. He said the launch marked the beginning of a very important chapter in the country’s agenda to strengthen integrity and fight corruption. “I believe the restructuring of MACC into a commission and the strengthening of its capacity will increase its delivery and effectiveness, and usher a new era in the war against graft. Over the years, Malaysia has taken steps to reduce corruption. While steady progress has been made, the perception that

corruption still exists within the public and private sectors remains. “This was one of the primary motivations that galvanised my government to make a concerted effort to fight corruption across the board and implement actions and policies based on good governance principles.”

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Citizen Nades: Feeble attempts to show independence Page 12