No LRT for Kuching until the Traffic Jam justifies

Sunday Tribune, Sarawak

July 17, 2005.

Sarawak State CVLB Chairman Datuk Wan Junaidi Tuanku Jaafar said it is not a feasible idea to set up a LRT system (Light Rail Transit) for Kuching, Sarawak as it has yet to have high population and massive traffic congestion to justify the introduction of LRT.

So, does it mean that Sarawak will only consider to have LRT after seeing massive traffic congestions?

Why is it that our system of government always choose to be reactive?

Must we face a crisis before any form of planning or actions will be taken to resolve it? When will we learn to plan ahead?

Another Kelantan Bridge is Falling Down, Falling Down

Bridge of Death Claims another life



For umpteen years, residents of Pengkalan Pasir Village, 6km from Kota Baru, Kelantan had been appealing to the authorities for the repair of this bridge. On February 14, 2005, this bridge claimed its second victim. 5-year-old Noralili Mohd Yusof fell into the canal through a gap between the rotten planks. Last year alone, one villager was killed and two others broke their arms and legs. Perhaps, now the authorities may act.

When Norlili Mohd Yusof drowned after falling through a wooden bridge in February, the authorities swore such an accident would not happen again.

But four months after the five-year-old’s death at Kampung Kok Pasir, a similar accident has claimed another life.

Last Monday, Khatijah Rahmatullah, 65, died after part of a wooden bridge in Kampung Dendang, Ketereh gave way on Monday. The widow’s body was found floating in the canal at 2.30pm yesterday. Khatijah’s son, Mohd Kamal Mohamad, said his mother was returning to a relative’s house after visiting him when the incident occurred at about 8.30pm.

"She comes to my house every night to see my children and then spends the night at a relative’s place," he said.

The incident has once again highlighted the problem of old and rickety wooden bridges over irrigation canals in the State. But an added complication has emerged in the wake of Monday’s incident.

It appears that some bridges were maintained by the State Drainage and Irrigation Department and others by the Kemubu Agricultural Development Authority (Kada).

State Public Works Department director Lim Chow Hock said efforts were being made to repair all bridges maintained by the department. He said while the bridge at Kampung Kok Pasir had been repaired, that at Kampung Dendang came under Kada’s jurisdiction.

When our Prime Minister was addressing the recent civil servants at Kuantan recently, he mention that Malaysia had first class infrastructure and third class mentality. It seem only a half-truth; for we have good infrastructure in the cities but not the kampung; and we have fourth world mentality ........

Towering problem for Marina

June 26, 2005, The Star

"EVERYTHING is for sale, including me!" Hajjah Marina Yusoff said half-jokingly when SC Cheah, The Star reporter approached her at the darkened lobby of Menara Marina recently.

Time is running out for Marina Yusoff, the former magistrate, lawyer, politician & an astute entrepreneur (Wanita UMNO leader, and later Semangat 46 leader). She has until the end of this month to pay Danaharta Urus Sdn Bhd the redemption sum of RM122.77 million in cash. Failing to do so, Danaharta may commence action to recover the debt, and she may lose ownership of Menara Marinara, the 36-storey mixed commercial building in Jalan Tun Razak, Kuala Lumpur, which Marina believed to be worth approx RM350.

Over the last 10 years, the project has always been in complex and onerous situation. The project started sometime in 1994, which happen to be almost at the same time the neighbouring project, Wisma Semarak of Telekom started calling for tender for the piling works. If I remembered correctly, Wisma Semarak started the piling works in 1996 and the main building works commenced on 1997, and completed in year 2000.

Both these two projects seemed to faced a lot of difficulties during the construction period - Bad Fungshui or whatever you believe it to be. To add to the difficulties, the economic crisis in 1997-1998 affected the main contractors financial cash flow and disrupted the work progress(both the main contractors are Public-Listed companies - CP Bhd for Marinara and Mancon Bhd for Wisma Semarak).

While Wisma Semarak was finally completed in year 2000, Marinara Tower was still struggling. The project stalled when Pekeliling Triangle Sdn Bhd, the developer and the flagship company of Marina, decided to terminate the main contractor's contract. CP Bhd, the main contractor brought legal actions against Pekeliling Triangle Sdn Bhd.[Period].

Whatever it is, the project did not have a good start, and Marina's hope is that the bad patch will end soon, and that she can recover her investment. Will she? It's going to be extremely tough.

Best of luck, Marina!!!!

SuperKids crossing Bridge in Nabawan, Sabah

NST, June 15, 2005.

The picture shows the school children who had to daily cling on to their dear life as they negotiate their way across this dilapidated suspension bridges in Nabawan, Sabah.

For many urban children, a trip to school means boarding a car or a bus and being dropped off outside the school gates. But for youngsters at a remote village in Sabah’s interior Nabawan district, the daily trip to school and back is a gamble with their lives. The 60 children of Kampung Labang, some 250km from Kota Kinabalu, have to cross the 80m-wide Sungai Sapulut on a rickety suspension bridge that is nothing more than a few cables strung across the waterway to go to SK Labang. With their shoes inside their school bags, the children aged 7 to 12, walk barefooted on the lower cable with hands grasping the upper cable.

Nabawan district officer Raymond Basir said yesterday that repair work on the bridge would be carried out as soon as possible. But how soon? Before someone gets killed, or what?

$60,000 for Diplapidated Bridge in Sabah

$60,000 allocated to repair the dilapidated bridge




RM51.5 million for landscaping in Kuala Kangsar, Perak and only $60,000 is needed to repair the dilapidated bridge in Nabawan, Sabah. And it took many months, sometimes years to get the approval for such disbursement.

I hope the Sabah State government will not siphon this allocated to pay for a landscape project in Kota Kinabalu Municipality.

In a similar case in February, there, someone had to die to get the authority to start looking at the bridge.


Pengkalan Pasir Village

For umpteen years, residents of Pengkalan Pasir Village, 6km from Kota Baru, Kelantan had been appealing to the authorities for the repair of this bridge. On February 14, 2005, this bridge claimed its second victim. 5-year-old Noralili Mohd Yusof fell into the canal through a gap between the rotten planks. Last year alone, one villager was killed and two others broke their arms and legs. Only after someone had died will the authority begin to act.

I weep for Malaysia! And, how long will it take the bridge to be completed?

Even to Plant Flowers, We Need Consultants?

RM51.5 million for landscaping and RM1.5 million for poverty eradication.

This is what the Kuala Kangsar Municipal Council requested under the Ninth Malaysia Plan.

MP of Kuala Kangsar, Datuk Seri Rafidah Aziz was baffled at the request. "Tourism is tourism, but we have to take care of the people, too," she said, criticising the "topsy-turvy" budget and urging the council to review it.

Rafidah, who is also International Trade and Industry Minister, was puzzled why the council allocated RM11.2 million to landscape its Sayong river front, RM8 million to set up a pocket park, RM3.6 million to upgrade housing areas and RM1.8 million for "greening" the roads.




"Tourists won’t come into housing areas to see the flowers. They have better flowers back home," Rafidah said.

She said that the council should focus on basic amenities, schools, infrastructure and socio-economic activities. Rafidah noted that many budgets appeared skewed towards landscaping projects and intended to raise this matter at the next Cabinet meeting.

During a meeting with Chinese community leaders today, she was told that the National Landscape Department paid RM300,000 in consultancy fees to a company owned by a university lecturer to propose landscaping ideas for Kuala Kangsar.

"Even to plant flowers, we need consultants?"

She noted that the allocations requested for landscaping and beautification projects made up almost half the RM118 million requested by the council under the Ninth Malaysia Plan. She suggested that gotong-royong activities be held to beautify the town, stressing there was no need for landscaping consultants.

The council requested only RM7 million for schools, RM7.6 million for socio-economic purposes, RM13.5 million for city services and RM32 million for infrastructure development.

COMMENTS:

Cheerio Rafidah! You are the first MP to admonish the pedantic dim-wit of municipal council. What about other municipal councils? Previously, there was also a report of the same farcical scenario at Sebarang Perai Municipal but the MP didn't make any sound and the State Local Government Committee Chairman Datuk Dr. Teng Hock Nan backed the council's decision.

The Seberang Perai Municipal Council (MPSP) had then awarded contract worth $1.5 million or about $5,700 a week to contractor to supply and plant flowers at the entrance of the council’s headquarter. Datuk Dr Teng Hock Nan defended the council’s decision saying that the 100 dozen a week of flowers are needed to brighten up the council office.





Hiring a landscape consultant may be necessary for certain circumstances, such as the project at KLCC-Twin Tower in KL, and in housing projects, where there is a need to get professional advice to ensure the landscape projects the values of the community lifestyle and the theme of the park.

But, for Municipality, they can get these advice for free if they call for request for proposal from the various well-established landscaping contractors. Contractors do have their own landscaping experts and are able to submit their proposal based on the need statement of the council.

So, why do we have to pay $300,000 to a lecturer for the consultancy fees? Well, please don't fault the lecturer! He was approach with this opportunity and he make good of that opportunity. The Council should know what they need. According to the lecturer, $300,000 is cheap as it equates to only ONE AP for the import of a luxurious car.

DRB Rail Project Land in Arbitration Court

DRB RAIL PROJECT IN DISPUTE COURT

DRB-HICOM Bhd chairman Tan Sri Dr Saleh Sulong said both the Government and the company have mutually agreed to appoint an independent claim consultant (ICC) to resolve the dispute on the variation order of the double-tracking project between Rawang and Ipoh. The variation order refers to the work ordered by the Government that is not included in the original contract, which reportedly is worth RM700mil.

The ICC or arbitrator will be appointed “which will be acceptable by both parties to address the issue of the variation order,” he told reporters.

For more info on contract & dispute management, go to:
www.projectmanagementysm.blogspot.com

Let Us Build The Crooked Bridge

CROOKED BRIDGE

Johor has made a strong pitch to the Federal Government to go ahead and build the "crooked bridge" to replace the Causeway. State officials said that any further delay in the construction of the project would seriously retard growth in Johor Baru. This message was given to PM Datuk Seri Abdullah Ahmad Badawi during a briefing yesterday.

The Johor government believed that the proposed bridge was an integral part of the re-development of the city centre, and that it was crucial that a decision on the project be made soonest possible.

"Everything hinges on whether the bridge will materialise or not," said a senior state official. "We cannot wait forever for Singapore to join hands to build a straight bridge."

Singapore has not indicated if it is in favour of a straight bridge to replace the whole Causeway, despite two rounds of talks between Abdullah and Senior Minister Goh Chok Tong. This uncertainty is of concern to Johor state officials, who feel the Federal Government should go ahead and build a half-bridge.

MAYBE, A CROOKED BRIDGE IS A GOOD REPRESENTATION OF OUR SYSTEM. That bridge may serve as a mirror for us, to remind us always of our cultured artistic impression!!!!

Malaysia has record 40,000 Class F Contractor

Record Numbers of Contractors

COMMENT: In a class by themselves
By Abdul Razak Ahmad, NST, 1st May 2005

Malaysia Boleh sekali lagi!!!!!

According to the Abdul Razak Ahmad, Malaysia has 42,313 registered contractors approximately, one contractor for every 614 persons (based on 26 million population).

This may be yet another world record and should be considered for the Guiness Book of Records.

So, this is yet another Malaysia Boleh-lah...

The only problem is: the Government recently announced a pump-priming of RM2.4 billion projects that will be up for offer, and if each one of this contractor is going to be given part of this cake, each contractor would be having a contract worth RM 56,720. But if the Class A contractors are going to take a major portion, then 35,000 Class F contractor will be jobless and waiting to be wind up.

There are approximately 35,253 Class F registered contractors. They are the smallest fry of the contractor’s world, dependent on government contracts that range from RM5,000 to RM100,000 project.

If we are to add the Class F Ali-Babas, China-Babas, Indian-Babas, Singh-Babas and Mat Salleh-Babas, probably we would have 70,000 Class-F contractors.

The Government, realising it has a problem on its hands, recently announced that it was freezing the issuance of new Class F licences but it is just too late.

The only solution is: follow Mahathir's system of economic expansion and create massive development projects and make more roads, bridges, schools, computer labs, airports, church, mosques, temples, toilets, cyberjaya 2 and 3, putrajaya 2 and 3, twin-tower and queen-tower, etc, etc.. and every contractor will have a job to survive.

If Pak Lah dare not do that, then maybe, Mahathir should come back to rule.

The Wisdom From CIDB

April 9, 2005, NST Business Times, page 1

CIDB Call to Builders - Go Abroad Now!

It is a necessity and the time is now - GO ABROAD,” says CIDB CEO Datuk Hamzah Hasan. According to Hamzah, going abroad is the effective way of countering job losses locally and competition posed by foreign players in the name of globalization.

It was reported that CIDB’s Construction Business Development division senior manager Ahmad Asri Abdul Hamid who had just returned from India armed with a basketful of job opportunities, adequate for big and small construction players to diversify their earning base.

Ahmad Asri felt that apart from the need to build capacity, Malaysian contractors must change their mindset and strategise when going abroad. “Overseas is the way … but it is not easy.

The CIDB is at the same time concerned with the quality and ability of Malaysian companies to perform without tarnishing their image abroad. CIDB is currently looking at putting in place a process and mechanism to accredit contractors especially those involved in the overseas market.”

Ask the contractors why they are not going abroad?

The answer is simple. "Kalau tak boleh cari makan di sini, mana ada kemampuan untuk melabur seberang laut?

The first criteria of investment abroad is .....CAPITAL...MONEY... A LOT OF MONEY!!!!! To many of the local contractors, making ends meet is the current problem. Everyone will want to invest overseas, if they had the capacity and SEED CAPITAL. Those who are currently investing abroad, they are either Public Listed Companies (PLCs) or Extremely Rich Businessmen. PLCs can do it as they can seek financial fundings from banks or investment Bankers. Private Limited Companies... you need to come up with million dollars of collateral to get bank to approve any loans. And to tender a foreign project, just to pay for the Tender Bond, put tak Larat-lah!!!!

So, thank you for your kind wisdom, Mr CIDB!

For CIDB's information, almost all contractors knows (including any stupid ones) that going abroad is a right move which will expand the boundaries of business opportunities, but, can you go abroad with your underpants and singlets and tell the foreign client, "PLEASE TRUST ME, I CAN DO A GOOD JOB; I JUST HAVE NO MONEY; JUST GIVE ME A CHANCE PLUS 15% ADVANCE PAYMENT & I WILL PROVE TO YOU SAYA BOLEH DAN MALAYSIA SEMUA BOLEH?"

Why is it that the Koreans and Japanese are successful in investing abroad in the last 30 years? Firstly, it is their Government's policy and effort with strong encouragement and proactive actions from the authorities such as Works Ministry, Construction Development Board, Govt-owned Industrial Banks, etc. Their government had initiated and directed the Industrial Development Banks & Export-Import (EXIM) Banks to fund all contractors who could secure overseas Federal Government-funded projects. Those who could show a letter of award from government-sponsored project overseas, they would be given total fundings. All they do is assigned their payment certificate as collaterals to the EXIM Banks or Industrial Development Banks, and they will receive the cash flows to pay for the project expenses.

Can CIDB do the same for the local contractors, particularly, Bumiputra Contractors and would CIDB KINDLY arrange with the Govt to provide the fundings to Bumiputra Contractors? AND, PLEASE ....Is there any under-table fees?

Luxurious ‘EXCO Village’ for Selangor Top Guns

CERMELANG, GEMILANG DAN TEMBERANG




Luxurious ‘exco village’ comes under fire
BY LOONG MENG YEE, THE STAR, PAGE 2, NATION.

The Selangor State Government had spent an estimated MR40 million of public funds to built an “EXCO VILLAGE” in Section 7, Shah Alam comprising bungalows and a clubhouse exclusively for the use of Selangor executive councillors. State Opposition Leader Teng Chang Khim questioned the rationale for the estimated RM40mil project, which comprises 10 bungalows and a clubhouse.

“The state government pays each exco a housing allowance. This payment is more economical than constructing and maintaining the bungalows as the monthly maintenance fee is high,” he said in a press statement yesterday.

As for the clubhouse, he said the excos could become members of the hilltop Kelab Shah Alam by paying RM1,500 monthly.

It is believed that the idea for an “exco village” was mooted last year by the state leadership. The reason was to have a centralised housing area for the councillors, to facilitate easier meeting with each other and the Mentri Besar. They now stay in different locations, some even outside the capital here.

A state official said the bungalows would remain properties of the state. "Most likely, the exco members will lose their monthly housing allowance once they move into the official houses. The state will actually save taxpayers' money because these houses will appreciate in value. We do not have to increase their housing allowances anymore from now,” he said. He said the clubhouse would function as a recreational area and a meeting point; it could even host official events.

It was argued that the bungalows were not extravagant as even district officers and various department heads were given official residences. A survey at the site showed that it is a gated community with a clubhouse right in the centre. Some of the bungalows were fully furnished, complete with bedroom and dining room sets. The gardens had been landscaped as well and workers said the entire “exco village” project had been completed and they were putting the finishing touches.

Is this in compliance with the doctrine of "CERMELANG, GEMILANG, DAN TERBILANG"?

It looks like the government is more towards the doctrine of "TEMBERANG"

Selangor State had decided to increase water tariffs because they could not continue to subsidise the rakyat. But they had no problem to spent multi-millions in building bungalows to appease themselves, plus, paying for trips to watch belly dancers, etc.

Are the rakyat made to look stupid? Did we elect this people to govern us? Oh, my God!!!!!!!

PLANNED TO FAIL - PAYA INDAH WETLANDS

PAYA INDAH WETLAND PROJECT

NST REPORTS - 24TH. FEBRUARY 2004.

The Paya Indah Wetlands established under a RM32 million development grant from the government was doomed to failure almost from the start. With a balance sheet that showed a monthly income of RM50,000 and operational costs of RM120,000, there was no way that the best of businessmen could have kept it afloat. Its eventual closure was inevitable.

So, why did the Government decided to go ahead with the project while the end results is predictable?

Failure to plan can caused failures. Planning to fail; the closure of Paya Indah Wetland in fact confirm that the plan was a success because it was originally planned to fail. Malaysia Boleh!!!!!!

Kelantan Bridge is Falling Down, Falling Down ...

Malaysia has 1st. Class Infrastructure?

Hundreds of schoolchildren uses this bridge daily. For umpteen years, residents of Pengkalan Pasir Village, 6km from Kota Baru, Kelantan had been appealing to the authorities for the repair of this bridge. On February 14, 2005, this bridge claimed its second victim. 5-year-old Noralili Mohd Yusof fell into the canal through a gap between the rotten planks. Last year alone, one villager was killed and two others broke their arms and legs.

Perhaps, now the authorities may act.

Didn't we say we have first world infrastructure and third world mentality?
Perhaps, we have both in the third world of darkness.

Water Commission Abandoned

On May 21st 2004, it was reported that "The government had put on hold the privatization of water supply in some states until a regulatory body to monitor water management is set up.

“I urge on-going privatization schemes to hold on to your horses because without benchmarks, the Government will in the end, be left with something unmanageable,” Dr. Lim Keng Yaik told reporters in KL on the 20th May.

Dead serious about improving the quality of water supply and services in the country, the Government is moving to set up by the end of this year a commission to be the sole regulator of the nation’s multi-billion ringgit water sector.

"We hope to do it by the end of this year," Dr Lim told the New Straits Times (March 3, 2004, NST). "I have to implement the National Water Council decision of last year for the Federal Government to take over the management of water from the States." To facilitate the establishment of the proposed National Water Services Commission, new legislation or even constitutional amendments may be necessary," he said. The proposed commission will oversee water supply and related services in all States except Sabah and Sarawak.

On July 27, as reported in StarBiz, Dr. Lim was reported to say that the Government was not asking for the “impossible” when it asked water operators and independent power producers to renegotiate their terms of agreement under the current structure of its privatisation scheme. Water, Energy and Communications Minister Datuk Seri Dr Lim Keng Yaik said the Government was merely asking the players in these two sectors to consider a new holistic structure in the utilities segment to make it more financially viable. “Many banks have come forward to offer their expertise to finance such projects and this shows that utilities projects are bankable,” he told a seminar in Kuala Lumpur yesterday. The Government was expected to invest RM50bil over the next five years to improve water and sewerage services, he said, adding that the amount was a third of the total to be spent under the 9th Malaysia Plan. He said given the huge investment, it was the ministry’s objective to establish a new model for the utilities sector, which would attract private investment and enable the industry to be self-financing and able to deliver to consumers first-rate service at a reasonable tariff.

On August 6, a group of 15 organization and associations, headed by Selangor Malay Chamber of Commerce and SYABAS Chairman, Tan Sri Rozali Ismail submitted a memorandum, addressed to Prime Minister calling on the Government to speed up the privatisation of water supply, if it had decided to do so. It was handed to Domestic Trade and Consumer Affairs Minister Datuk Shafie Apdal during a dialogue with the Selangor Malay Chamber of Commerce here today. Tan Sri Rozali Ismail said frequent water supply disruptions, poor water quality, low water pressure and other forms of water supply problems had consistently affected consumers. Among the points raised in the memorandum was that consumers were now having to purchase individual water filters as a result of poor water quality. Another was that consumers do not want to hear continuously about financial difficulties and the hassles of government bureaucracies before any suggested solution is put forward. An example is the setting up of the National Water Commission. The time that would take for it to be set up has been used as an excuse for not implementing remedial works and integrated actions to solve the problems. Another point raised was that inefficient management and planning of water resources had contributed to the increased level of water lost through leaking pipes, burst pipes and rampant illegal supply connections. These are the factors why water is not a revenue earner. Rozali said if immediate steps were not taken to solve the problems, it would be the consumers who would suffer and subsequently their businesses would be affected in many ways. "Consumers are often informed of the problems causing the lack of water supply but they are not being solved," he said.

On the same day, The Star reported that Dr. Lim had gathered a group of industry players to voice their other concerns pertaining to the water privatization scheme. The water industry players have urged the Government to review some of the contracts awarded by some states, saying they are inconsistent with the current plan to centralise water supply operations in the country. They said some of the contracts were only awarded recently, but not through the Economic Planning Unit (EPU), which oversees privatisation projects. “There could be some irregularities in the way certain contracts were awarded and they should be reviewed in the spirit of creating a level playing field for all water industry players,” an executive with one of the companies told StarBiz. Such concerns were voiced by industry players during a series of meetings organised over the past week by the Ministry of Energy, Water and Communications. “Most players in the state are unhappy about how some of the water contracts were unequal with one company enjoying higher rates than the others,” the executive said, adding that in one instance, payments received by a water company from the state government were based on its total capacity rather than its actual production, as was the case with other water firms. The difference in contract pricing, he said, had resulted in a higher water bill for the state water body, Perbadanan Urus Air Selangor Bhd (PUAS), which had to pay for treated water it did not use. In the long run, such contracts would also disadvantage consumers, the executive said.

On December 9, StarBiz reported that the Government has awarded the privatization of the management of water supply operations in Selangor, Kuala Lumpur and Putrajaya to Puncak Niaga group and Kumpulan Darul Ehsan Bhd.

On December 16, Dr Lim Keng Yaik was reported to say that “Klang Valley’s six million water consumers must be prepared for a 15% tariff hike in a year’s time.

Thus conclude the episode of National Water Services Commission Plan that most likely will not come into fruition, after all the HUHA...

Tan Sri Rozali had won and Dr. Lim can now think of retirement.

For the past many months since the loud proclaimation that the National Water Commission must be set up before the finalization of the water privatization scheme and the firm and unwavering stand of Dr. Lim, I thought, Malaysia now has ONE MINISTER who dares to stand tall and firm and will see his vision through reality. I stood by him, believing that he would not budge, that he is fully convinced that the Water Commission was what we need to resolve the long-term water problem and to set the standards for all other Ministers to Benchmark.

Alas, for whatever reason, either political pressure or self-weakness, the supposedly firm and courageous Minister falls, hard into the garbage bin.

PUAS $1 billion problem is no big deal for the government if they wanted to inject those money into PUAS. The Government can just get EPF to pay by way of issuing Government securities to EPF. So, the excuse that PUAS is in critical and dire straits is paranoid. The truth is, Politcal Maneuvering and Kelptorism.

It concludes that, we actually do not have a man strong enough to stand tall and willing to stretch his neck out, if necessary to be chopped, for the sake of his Vision, Mission and Objectives in the best interest of the Rakyat.

At such, the loser is not keng Yaik, but the Rakyat who will have to pay 15% extra in one year time and thereafter, .....only you can predict the outcome, the price of privatization.

God cannot help those who can't help themselves - the Rakyat!

God certainly help SYABAS ....and it's truely Syabas to Rozali.

"5 Class F Contractor can becomes 1 Big A" says Samy Vellu

Samy calls 40,000 Class F Contractor to merge into 8,000

Datuk Seri Samy Vellu has suggested that the 40,000-odd Class F contractors merge into about 8,000 companies to bid for major government projects. He said it would be difficult for contracts to be given to individual Class F contractors. “We want to help the Bumiputra contractors but they also need to have vision and merge to get the projects,” Samy said.

I had the opportunity to talk to a few Class F contractors on this matter to see their reaction to the suggestion. The reaction are that:

As Class F contractors, they are short of funds and even if 5 were to merge into 1 as suggested, it would only equal to one bigger poorly financed contractor and they would still be unable to compete with the big boys who had the resources and connections. If 5 of them merge, and try to tender for a big contract, say, Class A or B, (for contracts that are $10 million and above), the performance bond alone would amount to $500,000 for a $10 million contract (5% of contract sum), of which they will not be able to afford. Class F contractors are companies below $10,000 paid up capital and 5 of them will add up to $50,000 paid up (and the paid-up had been fully utilized for setup of office and administration).

It can only be viable merger if the government will waive the performance bond and advance payment bond. That, the Government had to decide if they are absolutely sincere to help the Class F contractors.

Apart from the above issues, the main problems with current Class F contractors is the lack of projects for the 40,000-odd contractors. Big or mega projects are awarded to gaint contractors who would not sublet to Class F contractors due to lack of experience and resources. At such, they had to depend on small projects of which the income from their project will not suffice to cover their expenditure.

If the Government wants the Class F contractors to succeed, there is a need to look into the funding of their operation and providing free training and guidance to them over a period of time so that they will grow in their knowledge and competencies, at the same time, make a little extra money to feed their family, and hopefully, any extra cash leftover, will be used to increase their working capital.

Would the Government be willing to provide the needs of these contractors, or are they going to keep talking and suggesting solutions that are insidious?

Cakap Boleh, Bikin Tak Boleh. 1+1+1+1+1 = 1 Big F

Sarawak Bridge Projects Delayed

Two bridge projects in Sibu and Lundu have been delayed for far too long.




Works Ministry parliamentary secretary Datuk Yong Khoon Seng said the Government wanted to ascertain the reasons for the delay.

Datuk Seri Samy Vellu will visit and inspect both the RM96 million Durin bridge project in Sibu and the Batang Kayan bridge project in Lundu to find out the causes of the delay.

The Durin project started in 1999 and was supposed to be completed in 2003. The completion date had been extended to December next year (2 years delay???) due to the difficulties of piling works caused by strong river currents.

The Batang Kayan project was supposed to be completed in 2002. It was submitted that the tender price was too low and the contractor could not continue with the project.
Does any of my students knows of or are involved with these projects? Please tell me what happens!

The Third School without roads in Johor Bahru

SMK Mutiara Rini 2, located near Taman Mutiara Rini in Johor Bahru was supposed to have opened in 2002 was unable to take in students as there was no access road leading to the school. The school has yet to be connected with electricity and water supply. This the the third school in Johor who does not have access road. The other was SMK Tanjung Puteri Resort and SK Tanjung Puteri Resort which had been ready for 3 years. In both the later cases, the developer did not have the funds to build the roads.

Millions had been spent to built schools but are unfit to function.

Did we had a Ministry of Education and is there a Monitoring and Control system within? Or, did they had a Reactive System - i.e., attend to the problem as it arise (or as we receive complaints)?

Pak Lah says the Government will use KPI to measure performance. Does the Government knows:
WHAT to measure, HOW to measure, WHEN to measure, WHERE to measure and WHY measure???

The fundamentals of Performance Measurement System (PMS) is that the design of the performance framework that measures:

what we cannot do,
what we didn't do,
what we won't do, and
what we have yet to do.

The design analysis of the PMS is based on the WHYs of it. It should incorporate the Six Thinking Hats.

It must emcompass the evaluation criteria together with the design of the monitoring and tracking system of:

how we are going to get them (the performance),
when will we get them, and
what is the acceptable level of competency and efficiency.

In essence, it means we measure what was not performed and what that was performed which are below par-excellence, but that which need to be performed to an appropriate level within the system to be successful. It will also deal with the people within the system who consistently fails to achieve them over a period of time which is target-set and predefined by the management. The relative use of Benchmarking is not to set similar standards as your competitor, but to use the competitors performance level as a guide to achieve competitive advantage and sustainability of performance over a predefined period of time, i.e. before your competitors starts to overtake you in your game plan.

The system should also be Dynamic, NOT Static.

The system cannot, and should not be generic in form, that is, you cannot measure everyone with the same criteria - same standard evaluation criteria and same expectation.

Everyone in the company is an asset of different value and cost, acquired at a specific price, to perform a specific level of functions and an expected level of efficiency and competence. An asset (Human Capital) acquired at a low price cannot be expected to performed at the same level of another asset which is acquired at double the price. In another word, we pay for quality and we expect the minimum quality results. Similarly, if we pay peanuts, we should expect monkeys.

At such, the design of any PMS has to be dynamic to ensure fairness and reasonableness, and justify investments in Human Capital Management. At the same time, the system must also provide a channel for the asset (employees) who have the talent, capacity and capability, and the energy to produce performance beyond their current assignment and excel beyond it.

Thus, the dynamic system must have sensors and actuators to capture and recognize these potentials, groom, educate and train these potential people, and provide the necessary infrastructure, tools and techniques that are necessary for them so that they would work their way to achieve excellent results and productivity beyond their assigned level of responsibilities, to an optimum level of performance and productivity.

With this excellent results, it will translate to optimum Return of Investment for the organization and the shareholders, and at the same time, these assets (people) are rewarded accordingly. The appropriate Reward System will motivate the people to continually seek improvement and ensure the organization's sustainable performance and results.

One additional point to note is that, the system must be designed to ensure the appropriate integration of the various functional managers and communication needs that addressed the necessary cooperation and co-working with each other, that which is necessary for the achievement of the ONE Corporate Mission, Goals and Vision.

The Motto is: "Together, We Succeed, Divided, We Fail - and the Competitors WINS!"

PMC puncanya, bukan JKR

"Dari tahun 1979 saya jadi menteri tidak pernah jadi macam ini''

- KATA DATUK SERI SAMY VELLU.

Utusan Online, 14th November 2004.

Datuk Seri Samy Vellu finally had finally the guts to come out in the open to bare all the viruses and worms that had plague the projects and had infected and infiltrated the whole Kitchen Cabinet.

Who was responsible for all the fiascos of project failures?

According to Samy Vellu, it is none other than the KSU, the Secretary general of the Finance Ministry who is the most powerful person in regards to decisions on project award.

This is what Samy says:

"Tetapi orang yang bertanggungjawab itu ialah Ketua Setiausaha kementeriannya. Ketua Setiausaha saja yang memberi arahan dan dia selalu tidak boleh menerima pandangan lain. Dalam satu-satu mesyuarat kalau ada para pegawai dari JKR untuk menjaga kepentingan teknikal, dia selalu malukan mereka. Dia kata, kalau tidak tahu tutup mulut."

"Beliau sedar bahawa semua masalah itu hanya muncul setelah perkhidmatan Perunding Pengurusan Projek (PMC) diperkenalkan oleh Kementerian Kewangan pada tahun 1990-an."

WHO DECIDES TO SET UP THE PMC?

This is what Samy says:

"Ia ditubuhkan oleh Kementerian Kewangan pada tahun 1990-an. Peranannya ialah untuk memansuhkan projek-projek JKR. Ada kepercayaan bahawa sekiranya projek-projek itu diberikan kepada PMC ia boleh disiapkan dengan lebih awal, lebih cantik dan macam-macam lagi. Malah projek yang mereka siapkan itu sebenarnya lebih mahal."

According to Samy, In the early 1990s, Mahathir's Govt had decided to engage the service of a Project Management Consultant (PMC) which are a composite cartel with faces and looks that resemble a contractor, may look like consultant and had shown interest as property developers and that entity is registered with the Ministry of Finance. The set up of PMC was meant to hijack all JKR's mega projects. It was claimed by the PMC that they are more efficient, more cost effective and can do a better job than JKR. The results speaks of itself: - Computer lab projects, Matrade Building, Hospital Sultan Ismail di Pandan, Johor, Kangar Hospital, Cameron Hospital, Langkawi School projects, et al; all these projects are now reverted back to JKR for reorganization and restructuring - to mitigate the damages done, and the multi million loses incurred; all tax-payers money.

As revealed by Samy, the PMC is a private entity who had only 2 officers manning the company - a managing director and a deputy managing director, and NO others. The Government, via the Ministry of Finance had entrusted and delegated the power to this PMC to appoint and select any contractors, design engineers, consultants, and nominated sub-contractors for all projects parked within their jurisdiction or those within the jurisdiction of the Ministry of Finance.

Snip from the interview:

Q: "Sebenarnya apabila Kementerian Kewangan sudah memberikan sesuatu projek itu kepada sesebuah kontraktor, tanggungjawab saya sebagai menteri hanyalah mengarahkan JKR supaya melantik kontraktor itu. Saya memberikan kuasa kepada Ketua Pengarah JKR untuk melantik kontraktor itu untuk harga yang telah ditentukan. Itu saja.

Ini bermakna Kementerian Kewangan mempunyai kuasa yang lebih besar walaupun Kementerian Kerja Raya mempunyai pakar yang boleh memberikan nasihat?"

SAMY REPLIED: YA, BETUL.

Q: Siapakah yang memeriksa PMC?

SAMY: TIADA SIAPA. (believe it? NObody manages or control or audit the PMC!!!)

Q: Kerajaan ada JKR tetapi kenapakah kerajaan memilih untuk memberi kepercayaan kepada badan swasta mengendalikan projek yang bernilai berjuta-juta ringgit? Apakah rasionalnya?

SAMY: Ada satu jawapan saja kepada soalan ini. Kata mereka, kerja-kerja itu boleh disiapkan dalam jangka masa yang cepat.

Q: Tanpa mempedulikan soal kos?

SAMY: Ya, tanpa mempedulikan kos. Apabila JKR membuka tawaran bagi setiap bilik darjah dengan harga RM55,000, ada juga pemaju yang bersedia menyiapkannya. Tetapi sebuah bilik darjah yang ditawarkan melalui PMC ada yang berharga RM95,000 dan ada juga yang mencecah sehingga RM120,000.

Kosnya sekarang sudah jadi berganda. Apabila kita tanya kenapa harganya jadi begitu tinggi mereka nanti akan beri berbagai-bagai penjelasan.

Sekolah-sekolah yang dibina dengan harga yang tinggi itu memang cantik-cantik. Tetapi siapa yang hilang wang? Kerajaan.

Q: Adakah pemaju-pemaju itu dapat menyiapkan projek-projek berkenaan dengan cepat seperti yang dijanjikan?

SAMY: Tidak juga. Ada sekali itu JKR telah diminta supaya mengeluarkan satu tawaran untuk pembinaan 500 buah sekolah dan kita sudah memilih lebih daripada 200 pemaju untuk melaksanakannya.

Tetapi apabila sampai masa kita hendak mengeluarkan surat niat, JKR telah diminta supaya menarik balik semua tawaran itu dan menyerahkannya kepada PMC. Semudah itu saja.

Q: Apa yang istimewanya tentang PMC ini?

SAMY: PMC LEBIH KUAT DARIPADA KITA.

Believe what you hear from Samy? PMC is stronger than Ministry of Works?

Is this the Government we had? That even the MINISTRY can be overruled by a PMC?

How is it that this can happen?
How is it that the Government had developed a dinosaur from a lizard within such a short span of a few years that is capable to destroy the Works Ministry and billions of dollars of project?
Who is behind the PMC?
Who's the GODFATHER behind it?
It cannot be the Jews?
Only UNMO can answer it; TRUST me!

PWD instructed to manage Matrade Building to Completion

PWD: "YOU MANAGE MATRADE BUILDING"





PWD DIRECTED TO COMPLETE MATRADE BUILDING WITHIN 21 MONTHS.

On problems affecting the Malaysian External Trade and development Authority building in Jalan Duta, Samy Vellu said the contract was not awarded by the PWD. The contract had been given to Syarikat Perangsang International Sdn Bhd and it had been refusing to allow PWD officials into the project since the first day.

Now, the Public Accounts Committee (PAC) has directed PWD to complete and handover the building within 21 months from the date of receiving the funds from the Government. Why? It took 10 years for the Ministry of Finance to get the project to its current state of affairs and PWD is only given 21 months to finished up the mess? I believe, it must had been a promised made by the Director-General of PWD Tan Sri Zaini who had requested RM32 million from the Treasury for PWD to complete the project. Is 21 months & RM32 million sufficient to get the project completed? I hope it does; if not, Zaini will have to burn his ass to answer for it.

During the meeting attended by PAC, the Board of Architects and the PWD represented by Tan Sri Zaini, PWD promised to take legal action against the errant contractor and recover some of the losses. What???? PWD to take legal action? Samy Vellu said the contract is not awarded by PWD; how then can they take legal action against the errant contractor? Is Samy Vellu and Zaini talking about the same subject and same contract? According to Samy, Matrade was not awarded by PWD; then how can PWD take legal contractual action? Are our Ministers and D-G going NUTs? or, are they misleading us??? Please clarify!!!!!! My God, Please sent Tan Sri Zaini back to law school!!!!!

Is Privatising PUAS Viable?

PUAS Dilemma

Urgent Need to solve water woes in Selangor





Refering to the NST article posted by AS Toh & LCC in the Letter to the Editor on November 4, 2004 pertaining to the problems besetting PUAS and the Selangor water woes, it had been suggested by the author that as a temporary solution, the Government should:

1) Continue to put on hold water supply privatization deals;
2) Federal Government to provide soft loans or grants to the Selangor State Government to tide over the difficult period until a permanent solution is found; &
3) Increase immediately tariff not by 2 to 4 sen but by 20% to 40% as required.

The proposal was meant to be temporary until a permanent solution is found; according to the author.

The Poser is:

What is temporary? When will the permanent solution be found?

The problems of PUAS was known and discussed within the government for more than 10 years and many solutions were forwarded and implemented including the increase of water tariff. Did the solution solve the problem - NAYs! Why??? Because the problem of financial losses and debts was not the root of the problem. Then, what was the root of the problem?

Firstly, the problem arises due to water shortages. This was a direct result of the failure to plan for the need of the State in the blueprint. 20 years ago, there had already been a proposal to built the pipeline to deliver water from Pahang to Selangor. The proposed project to be funded by the Japanese was put on hold primarily for reason of financial constraint and priority. But we spent billions to built Twin-Tower, KLIA, Putrajaya, Cyberjaya, and many highways around the country which would had been construed to be more important than the water project. PUAS CEO Datuk Mohd Sinon Mudzakir had repeated mourn publicly that "The Inter-State Water Transfer Scheme needs to be realised urgently or Malaysians will face a water crisis in 4 years. A system allowing water to be delivered to States lacking in the resource needs to be in place. There will be a crisis by 2008 if it is not implemented quickly,” Did anyone in the Cabinet respond to his SOS call? The respond by Dr Lim Keng Yaik was blinker-focussed on the privatization of the whole water management services but will never address the supply-side which ultimately will surface soon, maybe in 3-4 years time, as projected by PUAS CEO. Looking at the perspective of solution-making, the Government will not solve the water problem until the long-term needs of water for the State was addressed with a long term solution; but the State Government had implemented many other solutions. They privatized the treatment of water to various companies and the contract price was a fortune to the consortium as acknowledged by PUAS. Apart from the pricing, the methodology of billing and metering the quantities of treated water was far too advantages to the consortium. What it meant is that the consortium will be paid for all the water that leaves the treatment plant but PUAS will receive revenue for what was actually delivered and consumed by household and industry. The pilferage and wastages in-between the 2-point of measurement is borned solely by PUAS. And, if you (Consortium) bill me (PUAS) 1 gallon of water at treatment plant out-point valve and meter, how do I check and confirm that it was actually 1 gallon - i.e. what is the Control System and how do we audit? Are you sure the current system is adequate and sufficient to ensure nobody can abuse the current recording system of delivery?

Apart from that, who is responsible for the pipeline and the leakages? We privatized the meat but left the bones for PUAS to chew and expect them to survive? PUAS didn't and so the next course of action is: THE PROPOSAL TO INCREASE THE WATER TARIFF TO COMPENSATE OR TO OFF-SET THE LOSSES. So, who was made to pay? The Rakyat!

The water tariff in Selangor is $0.57 for domestic and $1.80 for commercial. For domestic water tariff, Johor is $0.38, Perak is $0.30, Pahang is $0.37, Kedah is $0.40 and Penang is $0.22. For commercial tariff, Selangor is $1.80, Johor is $2.22, Perak is $1.20, Pahang is $0.92, Kedah is $1.20 and Penang is $0.52. And Penang JBA is making a sound profit. From figures above, Selangor is non-competitive and the question arises should be - WHY??? Is it due to poor management, high cost of poor quality, wastages, inefficiencies, ineffective policies, poor or no proper control system, poor maintenance management system, high cost of overhead, et al. Had the Government start pondering the above questions SINCERELY & TRUTHFULLY? There are many things known but not spoken publicly and those comments come from the sources within the system itself. Kleptorism was within but the issue was : It was actually desired!

ON PRIVATIZATION

Withholding privatization is not the answer. Privatization is a certainty but the National Water Commission must be setup and are fully equipped and operational to Man & Manage the system, i.e to PLAN, EXECUTE & MONITOR AND CONTROL the complete water supply and delivery services and includes the maintenance and repair management framework and that the system had considered the needs for the next few decades; otherwise, the solution to the problem begets new and more deadly problems.

ON WATER TARIFF INCREASE

Increase of water tariff by 20 to 40% will burden the rakyat and the consequences had to be considered thoroughly and wisely. The Hypothesis issue is: The consumer is made to pay for systemic failure, cost of poor quality, inefficiency and kleptorism.

ON SOFT LOAN FROM FEDERAL GOVERNMENT

Providing soft loans to PUAS is not the answer. It's is TINKERING with the problem. Give them $2 billion today and in 6 months time they will be broke again, and shall need another $2 billion injection.

Khazanah owns so many corporations, are cash rich, and were supposedly great and efficient managers. Why doesn't the Government consider a test on the management of Khazanah by privatizing the system (without tariff increase at least for the next 5-years) as a whole to Khazanah and find out how good the management are? Are they afraid to take the challenge and prefer to invest in safe and secured investments?

Petronas, another super-tycoon and had investments in so many sectors such as energy, should be considered to accept the responsibility of water management, which is also ENERGY BUSINESS. Their success is gains from raping Mother Nature, and water is Mother Nature too. Why are they allowed to suck black gold and not white gold? Even if they had to subsidies water from the gains from black gold, both assets of Mother Nature, isn't it fair?

The paradox is: Profitable business, I manage, complex, less profitable and high probability of loss business, you manage - that's what GLCs are about. And they claim they are great managers - MY FOOT!

Another PARADOXICAL THESIS: Since Penang water management had proven to be successful and efficient, why not bring the team of managers including their CEO to PUAS and let them turnaround the organization? I'm certain, they will succeed!

Policy-makers, planners and implementers would be wise to take heed of the recommendations contained in the National Water Resources Study (NWRS) plan which was submitted and accepted by the Government. The Government cannot plead innocence any more, if somehow, somewhere, the rakyat suffer from water shortages. A lot is at stake.