Malaysian politics
Dropping a Klanger
Sep 3rd 2009
The Economist
A construction scandal reverberates throughout Malaysian politics
DREAMED up in the go-getting 1990s, the Port Klang Free Zone was supposed to turn a medium-sized harbour into a regional trans-shipment hub that might one day rival Singapore. The project got a green light in March 1999, as Malaysia was emerging from a recession. A decade on, amid another recession, the block of reclaimed swampland sits virtually empty—and bust. Excluding interest payments, cost overruns have risen to 3.5 billion ringgit ($987m), up from 1.9 billion ringgit in 2001-02. An audit by PricewaterhouseCoopers said the project would not make money and warned that the port authority might default unless it restructured the business. The resulting scandal has raised familiar worries about crony capitalism, tarnished the reputation of a new anti-corruption watchdog and enveloped a junior partner in the ruling coalition.
In the 1990s scandals about dodgy land deals, secret contracts and lax or non-existent oversight came and went, unexamined. Today an invigorated opposition and an unfettered online media have made apathy and obfuscation harder. Caught in the new spotlight, port officials, politicians and contractors have traded accusations of fraud, corruption and waste. Police are finally investigating the port after years of prodding. Heads seem likely to roll, though not necessarily the right ones.
The scandal should be a job for the new Malaysian Anti-Corruption Commission (MACC), created earlier this year from the ashes of another, toothless agency. The new body is supposed to act without fear or favour in tackling corruption, which Transparency International (TI) reckons has worsened in recent years. Anti-graft campaigners welcomed the setting up of MACC, which—on paper, at least—is a more robust institution than its predecessor, with independent advisory panels.
Alas, the MACC is not exactly focusing much attention on the port. Instead, say critics, it has been spending time on other matters, some trivial, often in opposition-run states, leading to accusations of partisanship. Several executives in Selangor, which is run by Anwar Ibrahim’s People’s Justice party, have been hauled in for questioning about expenses unrelated to the port. On July 16th the probe took a tragic turn when Teoh BEng Hock, a young aide to a state councillor, fell from a window in a tower block, where MACC officials had earlier been questioning him in a late-night session. An inquest into his death has considered stories of a struggle before his fall, as well as suggestions of suicide. A verdict is expected next month.
Meanwhile, the MACC and the police have said they are investigating the Port Klang case. About time, grumbles Tony Pua, an opposition MP in Selangor. He points out that a colleague filed a police complaint in 2004 over irregularities in land-acquisition there. Several other complaints were also filed. The police said there was no case to investigate. “It troubles a lot of people,” says Paul Low, president of TI’s Malaysia chapter.
The scandal has shaken the Malaysian Chinese Association (MCA), a member of the coalition led by the prime minister, Najib Razak. The party has long held the transport portfolio, giving it oversight of the port. Ong Tee Keat, the party’s president and minister of transport, has vowed to get to the bottom of the scandal, even if it involves former or present MCA officials. The result has been a power struggle between him and the party’s number two, Chua Soi Lek, a former health minister. On August 26th the party expelled Mr Chua over a 2007 sex scandal.
But Mr Ong’s image as an angel of justice took a hit when the port contractor claimed he had given him a political donation of 10m ringgit. Mr Ong has since filed a defamation suit against the contractor, Tiong King Sing. Not to be outdone, Mr Tiong, who heads a small political party in Sarawak, lodged a police report against Mr Ong. Mr Tiong has political clout. Few expect him to lose the case. However, Mr Chua, the ousted deputy, is not going quietly. He has called an extraordinary general meeting of MCA delegates to challenge his sacking. Only one of the party leaders is likely to survive.
Kepimpinan & ahli PAS cawangan Taman Song Choon mengucapkan Selamat Hari Raya "idulfitri kepada muslimin & muslimat. Semoga tarbiyyah Ramadhan berjaya membentuk kita menjadi hamba yang akur kepada seluruh perintah dan peraturan Allah...
