Wednesday, July 2, 2014

'Security deal can still happen under Zahid's nose'


Contrary to Home Minister Ahmad Zahid Hamidi’s assurance that foreigners cannot be involved in the Malaysian security sector, a tie-up between a Singaporean firm and a Johor prince might still go ahead.

Johor Solidariti Anak Muda Malaysia coordinator Roslee Mohd Sharif warned that this could take place through local proxy companies.

"It is a possibility that such foreign companies will hide behind a new and local entity to win (security) contracts," he said in a statement yesterday.

He was responding to Zahid who on Monday said his ministry's investigation showed there were no foreign companies running any security businesses in Malaysia.

He added if any foreign companies were found to be operating security businesses through proxies, the licence of the proxy will be revoked.

He was weighing into the tie-up between Soverus Group (left), owned by Singapore billionaire Peter Lim, and Johor prince Tunku Abdul Rahman, to set up a security business for the Iskandar region, a booming development area in Southern Johor.

Roslee urged the Home Ministry to release the list of companies that have participated in the bidding of security contracts or those that have been approved in Iskandar Malaysia.

"This is so the people of Johor can scrutinise the security companies involved," he said.

MOU already inked

Soverus Group announced in March that it had signed a memorandum of understanding with Tunku Abdul Rahman, who is a captain in the Johor military force, to "set up a premium security business in Iskandar Malaysia".

"We are excited about the potential of the joint venture with His Highness. His military background and personal interest in security-related issues will contribute to the success of our partnership in Iskandar and eventually, the rest of Malaysia.

"There is a growing demand for security services in the Iskandar region and we are optimistic about the huge business potential there," Lim, who is also Soverus chief executive officer, was quoted as saying on the company's website.

The deal had prompted BN's Kempas state assemblyperson Tengku Putra Haron Aminurrashid Tengku Hamid Jumat to express concern that foreign involvement will undermine Johor's security and called for the Home Ministry to intervene.

"The ministry must make a thorough review. Don’t gamble away our state's security. There should be zero-tolerance on the issue of security," he was quoted as saying by Bernama on June 19.

Tengku Putra Haron had similarly raised the issue in the state assembly sitting on June 1 where Johor Menteri Besar Mohd Khaled Noordin responded by saying that security licences was under the jurisdiction of the Home Ministry.

Umno-linked daily New Straits Times was more blunt, with its managing group editor Abdul Jalil Hamid describing Khaled's answer as an attempt to avoid tough issues.

"It was Khaled’s way of deflecting thorny issues - especially those relating to the Johor royal family," he said an in editorial piece entitled ‘Can Johor MB say 'no' to royalty?’.

Multi-billion business

Abdul Jalil noted that the Singapore billionaire together with the Johor royal family are already substantial shareholders in Singapore-listed Rowsley Ltd which has more than RM10 billion in property development projects in Johor.

Putrajaya has in recent months been at loggerheads with the Johor government which is seen to be close to the state sultan and unwilling to act when the royal family oversteps the boundary.

Yesterday, DAP's Kluang MP Liew Chin Tong (leftrevealedthat the Transport Ministry was upset over massive land reclamation works at Pulau Ubah, which is threatening the nearby Port of Tanjung Pelepas under its watch.

The reclamation works is for the Forest City project being spearheaded by China-based Country Garden Holdings Ltd and Kumpulan Prasarana Rakyat Johor (KPRJ), a subsidiary of the state government.

The project is being carried out under the vehicle, Country Garden Pacific View Sdn Bhd.

A member of the Council of the Royal Court of Advisers to the Johor Sultan, Daing A Malek Daing A Rahman, is reportedly among the directors in Country Garden Pacific View as of February this year.

Last month, the Johor government attempted to introducelegislation to set up a Johor Housing and Real Property Board that would give the Johor sultan executive powers.

The move received flak from federal leaders, including Umno veterans such as former prime minister Dr Mahathir Mohamadand former deputy prime minister Musa Hitam, who expressed concern over the blurring of lines between the monarchy and the executive.

The state government eventually caved in to pressure andamended the wording to limit the sultan's role in the bill, which was then passed.

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