Thesun 2009-06-12 Page01 Probe On Political Links
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Member of Audit Bureau of Circulations (Malaysia)
300,000 COPIES DAILY 30 SEN for delivery to your doorstep
Award winning newspaper for public service reporting and opinion writing.
No. 4779 PP 2644/12/2009 (023092)
Friday June 12, 2009
TELLING IT AS IT IS
Dateline: n Washingto
» Najib: Singapore keen on third bridge pg2
www.sun2surf.com
» Ahmadinejad rails against rivals pg8
News without borders
pg18 ALL PKA’S DEALINGS REGARDING PKFZ TO COME UNDER SCRUTINY
Probe on political links by Tim Leonard [email protected]
ETALING JAYA: All dealings of the Port Klang Authority in connection with the controversial Port Klang Free Zone (PKFZ) project will come under scrutiny, to detect political interference that could have allowed questionable decisions to be made. Datuk Paul Low Seng Kuan, Transparency International-Malaysia president and newly-appointed chairman of the PKA ad hoc corporate governance committee, told theSun that although the PKFZ is a business enterprise, “we have to study the extent of political involvement in it”. “PKA has a direct influence on the PKFZ project and from the government’s point of view, politics should not be involved,” he said, adding that the committee will clearly state all possible “misdeeds” on PKA’s part in its report. The PricewaterhouseCoopers (PwC) audit report released on May 27 had noted that the PKA board, which was represented by some notable and experienced people, lacked oversight and governance over the project, and also that in several matters, the board had limited involvement in their implementation. For instance, key agreements were not submitted to the board for approval, and variation orders totalling RM62.5 million were accepted by the PKA management without referring to the board. Also several government checks and balances were bypassed, the PwC report had said. Such disclosures had invited opposition parties to go to town with allegations of political involvement, damaging the government’s reputation, in recent days. So far, only former PKA chairman Datuk Chor Chee Heung (who is a deputy minister) has come forward on several occasions to say he had never deviated from his moral standard and accountability. The corporate governance committee was tasked by Transport Minister Datuk Seri Ong Tee Keat to put in place a longterm control mechanism and measures to ensure the PKA board and management
P
follow good governance rules and regulations. Ong also gave a task force two months to rectify the wrongs and pursue legal remedies. Low said his committee will study what was “missing” in the past and the “deficiencies”. Areas to be covered include possible conflict of interest and the authority’s limits. He said some things could also have been done by by-passing the board and “we have to determine how it happened”. “Another thing to consider is the relationship between PKA with its vendors and also the procurement system,” he said. He added that the committee will also check on the good governance culture in PKA, and look at ways and means to implement a better culture.
Low is assisted by Nik Mohd Hasyudeen Yusoff in the committee. Nik Mohd Hasyudeen is the Malaysian Institute of Accountants president and chief executive officer of Innovastra Sdn Bhd. He is responsible for the recent launch of the Audit Assurance Standard Board and the Ethics Standard Board, to ensure high quality of accounting standards. When contacted, Nik Mohd Hasyudeen said it was paramount to look at ways to move the PKFZ project forward and devise a plan that will enable it to make profits. Meanwhile, a member of the special task force set up to recommend to the government ways to correct the mistakes and pursue appropriate legal actions, declined to elaborate on its terms of reference.
The WHO yesterday raised the A(H1N1) flu infection first detected in Mexico from phase 5 to 6. This means the outbreak has progressed to a full pandemic involving the world at large. PA N D E M I C Sustained Widespread INFLUENZA human to human PHASES human infection Predominantly transmission animal infections; Phases 5-6 few human PANDEMIC infections Phase 4 Phases 1-3
PHASE 1 No viruses circulating among animals causing infections in humans PHASE 2 Animal influenza virus causes infection in humans, and is considered potential pandemic threat PHASE 3 Influenza causes sporadic cases in people, but no significant humanto-human transmission
» PAC to query MACC on probe Page 2
WHO declares H1N1 pandemic Possibility of recurrent events Post peak
Disease activity at seasonal levels Post pandemic
PHASE 4 Verified human-to-human transmission able to cause communitylevel outbreaks. Significant increase in risk of pandemic PHASE 5 Human-to-human transmission in at least two countries in one WHO region. Strong signal pandemic imminent
PHASE 6 Virus spreads to another country in different WHO region. Source: WHO
Lim Chee Wee, a member of the task force and partner of legal firm Skrine and Co, said: “We are unable to add to what the (transport) minister has said, and as legal practitioners, we are unable to comment at this stage.” Lim is assisting the task force chief Vinayak P. Pradhan, a senior lawyer and partner at Skrine. He is a former commissioner with the United Nations Compensation Commission and permanent Court of Arbitration member. The others on the task force are Chin Kwai Fatt, PwC managing director; Lim San Peen, the senior executive director of PwC; and Frank H.H. Lim, a quantity surveyor and building cost consultant.
Picture: Associated Press © GRAPHIC NEWS
GENEVA: The World Health Organisation declared the first flu pandemic of the 21st century yesterday, urging countries to shore up defences against the virus which is “not stoppable” but has proved mainly mild so far. The United Nations agency raised its pandemic flu alert to phase 6 on a six-point scale, indicating the first influenza pandemic since 1968 is under way. “This is a very important and challenging day for all of us. It is important because we will be raising our pandemic alert level to level 6,” WHO Director-General Dr Margaret Chan told reporters on a teleconference.
“At this time, the global assessment is that we are seeing a moderate pandemic.” Acting on the recommendation of flu experts, the WHO reiterated its advice to its 193 member countries not to close borders or impose travel restrictions to halt the movement of people, goods and services. The move to phase 6 reflects the fact that the disease, widely known as swine flu, was spreading geographically, but does not indicate how virulent it is. A unanimous experts’ decision was based on an overall assessment in the eight most
» Turn to Page 6
Member of Audit Bureau of Circulations (Malaysia)
300,000 COPIES DAILY 30 SEN for delivery to your doorstep
Award winning newspaper for public service reporting and opinion writing.
No. 4779 PP 2644/12/2009 (023092)
Friday June 12, 2009
TELLING IT AS IT IS
Dateline: n Washingto
» Najib: Singapore keen on third bridge pg2
www.sun2surf.com
» Ahmadinejad rails against rivals pg8
News without borders
pg18 ALL PKA’S DEALINGS REGARDING PKFZ TO COME UNDER SCRUTINY
Probe on political links by Tim Leonard [email protected]
ETALING JAYA: All dealings of the Port Klang Authority in connection with the controversial Port Klang Free Zone (PKFZ) project will come under scrutiny, to detect political interference that could have allowed questionable decisions to be made. Datuk Paul Low Seng Kuan, Transparency International-Malaysia president and newly-appointed chairman of the PKA ad hoc corporate governance committee, told theSun that although the PKFZ is a business enterprise, “we have to study the extent of political involvement in it”. “PKA has a direct influence on the PKFZ project and from the government’s point of view, politics should not be involved,” he said, adding that the committee will clearly state all possible “misdeeds” on PKA’s part in its report. The PricewaterhouseCoopers (PwC) audit report released on May 27 had noted that the PKA board, which was represented by some notable and experienced people, lacked oversight and governance over the project, and also that in several matters, the board had limited involvement in their implementation. For instance, key agreements were not submitted to the board for approval, and variation orders totalling RM62.5 million were accepted by the PKA management without referring to the board. Also several government checks and balances were bypassed, the PwC report had said. Such disclosures had invited opposition parties to go to town with allegations of political involvement, damaging the government’s reputation, in recent days. So far, only former PKA chairman Datuk Chor Chee Heung (who is a deputy minister) has come forward on several occasions to say he had never deviated from his moral standard and accountability. The corporate governance committee was tasked by Transport Minister Datuk Seri Ong Tee Keat to put in place a longterm control mechanism and measures to ensure the PKA board and management
P
follow good governance rules and regulations. Ong also gave a task force two months to rectify the wrongs and pursue legal remedies. Low said his committee will study what was “missing” in the past and the “deficiencies”. Areas to be covered include possible conflict of interest and the authority’s limits. He said some things could also have been done by by-passing the board and “we have to determine how it happened”. “Another thing to consider is the relationship between PKA with its vendors and also the procurement system,” he said. He added that the committee will also check on the good governance culture in PKA, and look at ways and means to implement a better culture.
Low is assisted by Nik Mohd Hasyudeen Yusoff in the committee. Nik Mohd Hasyudeen is the Malaysian Institute of Accountants president and chief executive officer of Innovastra Sdn Bhd. He is responsible for the recent launch of the Audit Assurance Standard Board and the Ethics Standard Board, to ensure high quality of accounting standards. When contacted, Nik Mohd Hasyudeen said it was paramount to look at ways to move the PKFZ project forward and devise a plan that will enable it to make profits. Meanwhile, a member of the special task force set up to recommend to the government ways to correct the mistakes and pursue appropriate legal actions, declined to elaborate on its terms of reference.
The WHO yesterday raised the A(H1N1) flu infection first detected in Mexico from phase 5 to 6. This means the outbreak has progressed to a full pandemic involving the world at large. PA N D E M I C Sustained Widespread INFLUENZA human to human PHASES human infection Predominantly transmission animal infections; Phases 5-6 few human PANDEMIC infections Phase 4 Phases 1-3
PHASE 1 No viruses circulating among animals causing infections in humans PHASE 2 Animal influenza virus causes infection in humans, and is considered potential pandemic threat PHASE 3 Influenza causes sporadic cases in people, but no significant humanto-human transmission
» PAC to query MACC on probe Page 2
WHO declares H1N1 pandemic Possibility of recurrent events Post peak
Disease activity at seasonal levels Post pandemic
PHASE 4 Verified human-to-human transmission able to cause communitylevel outbreaks. Significant increase in risk of pandemic PHASE 5 Human-to-human transmission in at least two countries in one WHO region. Strong signal pandemic imminent
PHASE 6 Virus spreads to another country in different WHO region. Source: WHO
Lim Chee Wee, a member of the task force and partner of legal firm Skrine and Co, said: “We are unable to add to what the (transport) minister has said, and as legal practitioners, we are unable to comment at this stage.” Lim is assisting the task force chief Vinayak P. Pradhan, a senior lawyer and partner at Skrine. He is a former commissioner with the United Nations Compensation Commission and permanent Court of Arbitration member. The others on the task force are Chin Kwai Fatt, PwC managing director; Lim San Peen, the senior executive director of PwC; and Frank H.H. Lim, a quantity surveyor and building cost consultant.
Picture: Associated Press © GRAPHIC NEWS
GENEVA: The World Health Organisation declared the first flu pandemic of the 21st century yesterday, urging countries to shore up defences against the virus which is “not stoppable” but has proved mainly mild so far. The United Nations agency raised its pandemic flu alert to phase 6 on a six-point scale, indicating the first influenza pandemic since 1968 is under way. “This is a very important and challenging day for all of us. It is important because we will be raising our pandemic alert level to level 6,” WHO Director-General Dr Margaret Chan told reporters on a teleconference.
“At this time, the global assessment is that we are seeing a moderate pandemic.” Acting on the recommendation of flu experts, the WHO reiterated its advice to its 193 member countries not to close borders or impose travel restrictions to halt the movement of people, goods and services. The move to phase 6 reflects the fact that the disease, widely known as swine flu, was spreading geographically, but does not indicate how virulent it is. A unanimous experts’ decision was based on an overall assessment in the eight most
» Turn to Page 6
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