Brains, botched projects and money at the Selangor State Assembly

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The Auditor-General was urged to probe into the finances of Selangor state-owned companies by a Selangor Opposition leader today.

Satim Diman (BN-Sri Serdang), when debating the State Budget 2012 today, said state-owned companies should be placed under the public scrutiny, especially their sources of income.

“For example, Perbandanan Kemajuan Negeri Selangor (PKNS) sold three parcels of land worth RM220mil when investing in a company, but in return it received only get 30 percent of the company’s shares worth RM160mil,” he claimed in the state assembly today.

He also claimed that the PKNS general manager has enjoyed a skyrocketing pay since Pakatan Rakyat took over the state government in 2008.

‘Between 2009 and 2010, the general manager received a total of RM1.4mil in salary and bonuses, which might be even higher than MB,” he averred, adding that the monthly salary for the position used to be RM7,000, following the civil service pay scale.

He feared if the state were to implement the proposed RM1.9bil state budget, which he described as “merely for the general election”, Selangor would go bankrupt next year.

Satim was challenged in his assertions by Lau Weng San (DAP-Kampung Tunku), as who said this was the same criticism by BN when Pakatan launched its free 20 meter cubic water policy in 2008.

“Last time, you said the state would go bankrupt within six months, now you say it is 2012, so when are we really going into bankruptcy?”

Satim did not respond, as he went on to criticise PKNS for violating the spirit of its founding.

He said PKNS is upgrading its properties in Pusat Bandar Keramat with the Datum Jelatek project. However, he claimed the cheapest upgraded unit will be sold at RM600,000, out of reach of the original owners, who were paid RM250,000 compensation.

He also said privatisation and joint venture projects are still rampant in Selangor, despite Menteri Besar Khalid Ibrahim in 2009 undertaking to cease this arrangement for state-owned companies.

“MB said joint venture project on 70:30 profit sharing basis is detrimental to the state, but now PKNS is building Selangor Science Park with this equity ratio,” continued Satim.

“Whereas in Klang River Rehabilitation Project, a company called DPZ Asia was picked by MB himself without open tender,” he further claimed.

“Science Park 1 a botched BN project”

Photo by hornbillunleashed

However, Satim’s allegation that Selangor continues to have joint-venture projects in a 30:70 profit-sharing ratio despite being banned by Khalid Ibrahim since 2009 is untrue, Khalid’s political secretary, Faekah Husin, told Komunitikini later.

She rubbished the claim by Satim, who cited the example of Selangor Science Park 1 as a vivid example of a PKNS private-public partnership in a 30:70 ratio in favour of the private company.

“That is a botched project by BN (Barisan Nasional),” she said.

“We have mainly just continued the project which was signed off before 2008,” she explained.

In turn, she alleges that Satim owns a company that wanted to continue in a profit-sharing arrangement to build Selangor Science Park 2, but the state government deemed it as detrimental to the state’s interest.

“MB (Khalid) found it and put a stop on it,” she said.

Selangor Science Park 1 and 2 are situated at Kota Damansara and Cyberjaya respectively.

Referring to the Klang River Rehabilitation Project, Faekah, explained that DFZ Asia is only a consultant engaged by Selangor to conduct a study on the project, and not a contractor as alleged by Satim.

“The actual contractor has yet to be appointed; the Opposition must have an extra brain to understand this,” she said, tongue-in-cheek.

On the Perbadanan Kemajuan Negeri Selangor (PKNS) issue, she said an internal auditor has been appointed to audit the accounts, while its general manager Othman Omar has been tasked to address the issue.

It is understood that Othman will be present at the state assembly tomorrow to answer the allegation about his pay.