Anwar
lodges police report over Bakun Dam corruption
By
Anwar Ibrahim
This
is the English version of the text of the report by Datuk Seri Anwar Ibrahim on
12 November 1999. It gives us the background to the most expensive project in
Sarawak todate of which the cost overruns from RM4 billion to RM15 billion
remains a mystery and the Sarawak government is now contemplating to spend our
Sarawakians money to the tune of RM7 billion to buy this white elephant from
the federal government. – HU Editor
Report
prepared by Anwar Ibrahim over the alleged corruption over the Bakun Dam issue.
Police
Report Federal Court Kuala Lumpur
Police Report No. Tun HS Lee 30375/99
Dated 12th November 1999 at 12.22 p.m.
TRANSLATION
OF THE ORIGINAL
I
hereby submit documents from Tan Sri Ting Peck Khing (whose Ekran Berhad company was
awarded the Bakun Dam project by the government) addressed to Tun
Daim Zainuddin (present
Finance Minister) and Dato Seri Dr. Mahathir Mohamad (Prime Minister of Malaysia),
plus a directive from Dato Seri Dr. Mahathir to me, as the Finance Minister
then, to speed up the approval of payment to Tan Sri Ting, contravening the law
and financial procedures and without prior reference to the auditors, Price
Waterhouse (who did an
audit to determine how much work had Ekran completed/not completed after Bakun
dam was deferred amid the economic crisis), who were appointed to
scrutinise the application for compensation from Ekran, who were undertaking
the construction of the Bakun Dam project in Sarawak.
The
application for payment of compensation was sent by Tan Sri Ting direct to Tun
Daim although he did not have any authority to approve it. The application was
also sent direct to Dato Seri Dr. Mahathir, who again demonstrated his method
of implementing mega projects such as Perwaja (Mahathir’s pet steel company who suffered billion
dollars loss in which investigation is supposedly still on going),
Putrajaya (the multi-billon
new administrative centre of the Federal Government) and KLCC (Kuala Lumpur City Centre, the
world’s tallest building).
He
had approved the Bakun project without complying with privatisation or tender
procedures. He had launched the project even before Cabinet approval. As per my
previous police report with regards to Perwaja, he had established direct links
with Tan Sri Ting, bypassing the Ministry and agency concerned.
The
Cabinet only approved it later and he asked me to monitor it as the Chairman of
the Cabinet Committee on Bakun. In fact, in the application for compensation,
as stated in the letters attached, I was totally ignored, though at that point
in time, I was the Finance Minister and the Chairman of the Cabinet Committee
for Bakun. My firmness and reluctance to arbitrarily approve the allocation
without complying with the financial procedures and regulations resulted in my
being doubted.
The
majority interest in the Bakun project is held by Ekran, which is controlled by
Dato Seri Dr. Mahathir’s close friend and business partner of Tun Daim, that is
Tan Sri Ting Peck Khing. Rasip Harun, the business partner of Tun Daim, also
held equity.
Rasip
Harun and Robert Tan Hua Choon, another business partner of Tun Daim,
controlled Jasa Kita. Jasa Kita was involved in the abuse of the Telecom shares
allocation scandal, which was supposedly allocated by Daim to the Indian
community while he was the Finance Minister.
On
the other hand, the shares concerned were diverted to three companies related
to Dato Samy Velu (President
of the Malaysian Indian Congress, the major Indian component party of the
ruling natioanl coalition government). This included Clearway (a
company), in which Robert Tan’s driver, Baharuddin M. Arip, was a Director, as
well as Jasa Kita.
Robert
Tan’s other company, Spanco, was hastily given approval for the privatisation
of government transport by the Privatisation Unit of the Prime Minister’s
Department. The company’s services were criticised as weak and costly, and I
had asked for some clauses in the agreement to be reviewed.
Because
Tun Daim had an interest, all my comments and objections were sidelined by Dato
Seri Dr. Mahathir.
The
Bakun project requires Sarawak government support. Therefore, Ekran secured the
involvement of two sons of the Chief Minister, Tan Sri Abdul Taib Mahmud: that
is, Mahmud Abu Bekir and Sulaiman Abdul Rahman who hold equity in Ekran and
Pacific Chemicals.
Thereby,
Ekran easily obtained timber concessions for thousands of acres surrounding the
dam area, although the local residents and environmental organisations strongly
protested.
Other
than that, Dato Seri Ling Liong Sik’s (President
of the Malaysian Chinese Association, the major Chinese component party of the
ruling national coalition government) son was also appointed to the
management of the project with generous remuneration.
With
the endorsement and approval of Dato Seri Dr Mahathir, the decision to approve
the project was made without reference to the Board of Directors of the Bakun
company, or the Finance Ministry, or the Cabinet Committee.
At
that point in time, when the project viability was in doubt, the Prime Minister
directed HICOM Holdings, EPF (Employees
Provident Fund), and TNB (Tenaga
Nasional Berhad, the West Malaysian electricity generator and provider)
to also hold equity.
The
said companies, along with SESCO (Sarawak
Electricity Supply Corporation, the electricity generator and provider),
continuously protested because Tan Sri Ting had made the decision on his own, “with the Prime Minister’s agreement”,
without the prior approval of the Board of Directors.
The
contract was arbitrarily awarded to companies related to Ekran. For example,
Pacific Chemicals (another
of Tan Sri Ting’s flagship company) was given logging contracts
covering 20,000 hectares in the Bakun area. FCW Holdings (another of Tan Sri Ting’s company)
was promised a 4 billion ringgit (about
US$1 billion) contract for the manufacture of submarine cables that
also involves Dato Seri Dr. Mahathir’s son’s interests.
In
the end, when it became obvious that the project was going to fail, and that we
would be repeating the experience of Perwaja’s losses having to be borne by the
government, I used the economic crisis that we were facing at that time as the
excuse to cancel the project.
Furthermore,
too many decisions involving these companies were found to be lacking tin
transparency, raising problems with the KLSE (Kuala
Lumpur Stock Exchange) and the Securities Commission.
Action
against Ekran did not take place because of the protection given by the Prime
Minister and Tun Daim. The termination of the project not only incurred the
anger of both of them, but also of the families and crony companies who had
interests.
The
application for compensation amounting to 2.2 billion Ringgit (about US$580 million)
was excessive – as revealed in Tan Sri Ting’s letter to Tun Daim dated 11 July
1998 (Exhibit one). His letter to Dato Seri Dr. Mahathir mentioned advance
payment of 120 million Ringgit (about US$31.6 million). The Prime Minister, in
his memo dated 12 August 1998, instructed me to pay, disregarding financial
procedure regulations (Exhibit two).
I
am aware that several previous police reports, accompanied by documents and
letters, in particular those involving Dato Seri Dr. Mahathir and Tun Daim,
have not been investigated nor has any action been taken, as if these leaders
are immune from investigation and action.
On
the other hand, the Alternative (Opposition)
Party leaders are subjected to repressive actions and pressure. I urge the
police to act professionally.
Again,
I submit documents and letters, which show that conflicts of interest, bribery,
and abuse of power involving Dato Seri Dr Mahathir and Tun Daim exist.
We
are still waiting for investigation and action by the police (whose minister is the Mahathir
appointed Deputy Prime Minister, and former Foreign Minister Dato Abdullah
Badawi) and the Anti-Corruption Agency (which reports to the Prime Minister).
Exhibits
one and two are attached herewith.
Thank
you.
(Signed
by Dato Seri Anwar Ibrahim)
My comments:
When will these devils, Mahathir especially be trialed?
Why did I search for the articles related to Bakun Dam again?
Now Sarawakians within the vicinity have to face frequent flood disasters and landslides as a result of the evil deeds of these devils.
Pakan landslide cuts off main road, damages water pipes (the Borneo Post) (25/2/2019)
I wonder how far Pakan is to Bakun Dam.
