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Categories
| PAC on PKFZ KDSB blames failure on PKA, bureaucracy |
| Features | |||
| Written by Chua Sue-Ann | |||
| Thursday, 05 November 2009 11:16 | |||
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According to transcripts of proceedings in the Public Accounts Committee’s (PAC) inquiry tabled in parliament yesterday, Faizal said PKFZ was not attractive to investors because “the number one problem with this free zone is actually the bureaucracy”. Faizal noted that other free zone authorities around the world could function as a “sovereign authority”, with some empowered to give approvals or, at least, act as a “one-stop service” for approvals. “This free zone must be seen as efficient, fast, free zone... This is very bad because how (can) we compete with our neighbouring countries? “People are willing to pay a premium for an efficient service... Cheap is no more the marketing power. We must be efficient,” he said in reply to a question from PAC member Tan Ah Eng (Gelang Patah-BN). The PKFZ reportedly has a low occupancy rate of 15%-20%, resulting in it not getting enough revenue to cover its operating expenses. PKFZ’s unattractiveness also stemmed from unclear incentives given to different industries, the development’s marketing strategy as well as the “bad coverage” it had garnered, Faizal said. PAC member Datuk Kamaruddin Jaafar (Tumpat-PAS) interjected, pointing out that the nation’s other mega projects, such as Putrajaya and KLCC Twin Towers, did not run into similar problems. Faizal, who was summoned before PAC on Aug 26, defended KDSB saying he believed the company had done “nothing wrong” with regard to the contract it signed with PKA. KDSB’s lawyer Nahendran Navaratnam, who was present with Faizal, earlier told PAC to instead question PKA, which had agreed to the terms of contract with KDSB. “Our job is to try and secure the best possible deal for us as a private individual,” Nahendran said. He claimed that certain public perceptions had been “created” to disguise and deflect attention from the project’s failure in securing tenants. According to Nahendran, KDSB and PKA’s “dynamic” contractual relationship and their respective roles had also been “misunderstood”. The lawyer also continued his tirade against auditors PricewaterhouseCoopers (PwC) and their position report on the controversial project, which he claimed “shifted the burden” from PKA to KDSB. Auditor-General Tan Sri Ambrin Buang later told PAC that PKA, as the project manager, should have monitored the project’s implementation to ensure that it stayed within its budget. This article appeared in The Edge Financial Daily, November 5, 2009.
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