Underworld, Sand and Selcat?
Politics Comments OffSelangor Pakatan Rakyat Government ambition to generate some RM180.00 million of business per annum was squashed by Kumpulan Semesta Sdn Bhd , Executive Director Ir Ramli Abd Majed of during SELCAT hearing recently, since he unaware how such figure was derived. Sudden dead of the person calculated RM30 per mt for output of 6million sand per annum forced Kumpulan Semesta to appoint a new management that focus it’s activities primarily into extraction of river and mining sands on government land while lucrative transportation business was passed to existing sand transporters, reducing Kumpulan Semesta Sdn Bhd forecast sales around RM 36million per annum. When I say existing it signify present government cann’t control them or benefit of fear or political advancement has taken over authority from ruling party?
Why, Only Extraction Business?
A special attention must be paid to why Selangor Chief Minister Khalid Ibrahim says “that he had advised Manikavasagam must be ready to face consequences of blowing up sand scandal issues via media” after the Kapar MP receive death threat note, which was accede by his predecessor Khir Toyo and it’s link to why Kumpulan Semesta end up with sand extraction business alone?
The dead threat Manikavasagam received coupled with 40 over police report by Kumpulan Semesta staff as disclosed by it’s Chairman Abdul Shukur Nagor itself evince enforcement deficiency that lead to the valuable mineral been hunted by underworld businesses.
During two weeks of talking to peoples including key witnesses that SELCAT repel, I found that quartz mineral both from ex mining and river fetch good demand domestically and from neighbouring country however it needs to compete with cheaper sand from other state, primarily from Perak.
The competition within key player whom well connected politically motivated them to find ways to evade state royalty payment by offering own transport services.
Modus of Operadi
As pointed out during the SELCAT hearing, Semesta failed to eliminate illegal mining or bring their numbers down significantly since market demand lower price then available in Selangor. Even, legally operating Contractor continues to operator illegal either next to legal site or elsewhere to average out their cost of operations.
Most of the illegal sand are transported during night or early morning though National Land Code requires such activities to be carried out only during Land Office working hours and each lorry must have permit to carry the mineral.
Such thing doesn’t happen in reality as the illegal miner has good public relation including political connection while take care enforcement authorities be it from local, state or federal agencies.
Semesta as Corrupt Practice Inducer
Unlike Petronas which was established under Petroleum Development Act 1974 , Kumpulan Semesta was merely a business entity under the Selangor Menteri Besar Incorporated without any power of enforcement or authority to monopolize entire Selangor Sand output. This created a grudge between Land Office whose head was appointed by the Federal Government but carries out duties of State Government.
The loose business entity opens gates to some elected representative to corrupt it business practice by implementing selected rebate system to companies that highly recommended by them. A document presented to Selcat, queried why the rebate system continues until today despite it should end on Jan 2, 2010 and failure of the company to achieve its sales target set was raised. The main point that I could say SELCAT overlooked.
Defective in rebate system let Semesta’s insider to divert all cash sales to it’s biggest and influential client that enjoy highest rebate. While, Semesta lose much profitable cash sales, it gives way for the difference between cash price and rebate price shared by certain parties.
Knowing illegal sand mining activities being carried out just adjourned to it’s it’s own river sand extraction site, Semesta moved its Cabin deeper inside to avoid confrontation with them. It’s own staff was instructed to take count on number of lorries ferrying illegal sand, why?
Did Selcat Bow to Political Pressure?
The decision of Selcat was very much as anticipated by those involve in blowing up the issue out as it merely referring to Kapar MP’s few pieces of documents send to Menteri Besar’s office. When submitting document the parliamentarian clearly expressed that what he submitted was merely few pieces of documents while he has in procession lot more. However, Selcat hearing was called upon without any attempt to secure additional documents and any consultation to identify additional witness from the accuser? Did Selcat Bow to Political Pressure?
The independence of SELCAT was raised by a witness barred from testifying as he had pass some of the documents to one of it’s member via another state legislative assemblyman. Instead of investigating his report the said SELCAT member informed Semesta management, who issued a warning letter and transferred the informer from head office to site.
Underworld Pressure Overrule Political Will?
Legalising the sand business requires strong political will and gut to face any consequences as underworld had been digging it freely for nearly half a century. This illegal business has very well established network where police too reluctant to take action when another witness whom was chased by thugs take shelter at the station.
If the state government serious in combating corruption and economizing the sand , it need it own strong enforcement agencies by mean of a new enactment.


