Friday, June 1, 2018

Ting's multi-billion project: Analyst rues shades of yesteryear crony capitalism


Penang Institute fellow Wong Chin Huat has expressed concern over Ting Pek Khiing's multi-billion ringgit Langkawi New City project.
“This is the most disturbing development since May 10 (when it was officially announced that Pakatan Harapan won the general election),” he added in a Facebook posting.
He said the speed in which the contract was given the green light appeared to resemble the practice of crony capitalism of the 1980s and 1990s.
Though he did not mention names, Prime Minister Dr Mahathir Mohamad's first tenure at the helm from 1981 to 2003 was replete with accusations of cronyism and nepotism.
“It's not populism or short-term decision-making, but super efficiency and speed in project approval, so many characteristics of crony capitalism of the 1980s and 1990s.
“Malaysians must demand accountability and transparency,” said Wong.
Ting, who had kept a low profile for the last 16 years, told the media yesterday that the Langkawi New City project, expected to cost around RM30 billion, would be located on 81ha of reclaimed land off the west side of Langkawi.
The Sarawak tycoon said the project would involve the construction of 30,000 high-end condominium units, commercial centres, berthing facilities for ocean liners and yachts and other facilities.
“Several companies in our group will be involved in the development which is expected to be completed in 10 years’ time, or even earlier,” he had said, without naming these companies.
Ting was also involved in the construction of the controversial Bakun Dam (photo) in Sarawak.
In a 2013 blog posting, analyst Anil Netto wrote that Bakun's coffer dam collapsed more than 20 times during construction, and the site was said to be jinxed as it was built on native ancestral grave sites.
Due to the financial crisis in 1998, Ting's flagship firm Ekran Bhd was unable to complete the project but was reportedly compensated a massive RM950 million by the government.
In the book Malaysian Maverick, author Barry Wain claimed Mahathir gave the green light to Ekran in 1994 after Ting and then Sarawak chief minister Abdul Taib Mahmud privately negotiated a deal.
“There was no competitive bidding. Ekran, which lacked relevant experience, apparently did not even submit a proper proposal to the state government before it got the contract and Ting produced his environmental impact study almost six months after the award,” he wrote.
Following his sacking from the government in 1998, Pakatan Harapan de facto leader Anwar Ibrahim filed a police report accusing Mahathir of approving the Bakun dam project without complying with privatisation or tender procedures.
“He had launched the project even before cabinet approval... he had established direct links with ... Ting, bypassing the ministry and agency concerned,” he claimed in the police report. -Mkini

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