No evidence of corruption in KSSB: committee
The allegations of corruption in state government-owned sand mining company Kuala Semesta Sdn Bhd (KSSB) are ‘baseless’ but there are elements of mismanagement.
The Selcat panel has found no basis in the evidence to substantiate allegations of corruption in the state government-owned sand mining company Kumpulan Semesta Sdn Bhd.
Selangor legislative assembly select committee on competency, accountability and transparency chairperson Teng Chang Khim (
right
) said the findings, after three days of public hearings, did not throw up sufficient evidence of graft.
"All we have is one person claiming that there is a demand made by someone else. And it is unfair for the person who was complained against (since the claimant had not taken the matter).
"So where is the scandal? I never saw any scandal," he told a press conference after today's hearing ended this afternoon.
"At the moment (these complaints) are just contract issues. These are to be determined by the courts, not by us," Teng said, adding that the committee was only formed to act as watchdog for the state administration.
"We are just here to represent the rakyat at large. It is up to the executive whether it wants to follow up on our recommendations in the report."
Meeting over drinks
The Selcat panel also heard testimony from one of Kapar MP Manikavasagam's complainants, KSSB sand contractor Cheong Hoong Wooi.
Cheong (
left
) alleged that a mid-level ranking KSSB officer met up with him over drinks late one night, during which the officer asked Cheong for a "commission" to help the contractor sell fine sand, a product that KSSB does not deal in.
KSSB officials had earlier said they only sold concrete-washed sand, also known as medium coarse sand, and that the company's portfolio does not include the sale of fine.
"He said he wanted to cari makan from the sale of fine sand," said Cheong, in halting Bahasa Malaysia, adding that the KSSB staff was only asking for future deals and had not acted on it.
"So have you given bribes to this official?" asked Teng,to which Cheong replied in the negative.
Earlier he had complained of price discrepancy when that same KSSB staff had reneged on an earlier agreement on the price of sand.
"He had agreed to let me buy at RM12.50 per tonne. But when I finished digging up the sand, he came to see me and told me that (KSSB executive director Ramli Abd Majed) did not agree to it," he said.
The "star witness" also complained of bad business practices, saying that KSSB did not provide statements of account as well or receipts for cheques until two weeks ago.
Lumping products
KSSB was further grilled earlier in the day when Teng asked Ramli, who continued his testimony from yesterday, about the sale of sand and lumping the products into only one category.
Fine sand commands a higher price, but is not in demand where KSSB's main roster of clients is concerned, which are cement and concrete-making companies. Ramli also explained that some mines have an overlapping of medium coarse sand, as well as fine sand, and it could not be helped if both sands got mixed up.
"So if the fine sand is of better quality, and is sold at a low price, KSSB would take a loss?" asked Teng, to which Ramli replied in the affirmative.
Ramli had said that the sale of fine sand by KSSB only made up "two or three percent" of total sales.
Teng also presented a scenario where if a company were to buy fine sand at the medium coarse price, and then sell it off at a higher price, KSSB's business model would be flawed.
"This is the weakness of KSSB," he added.
The final witness was another sand contractor, Lau Chai Eng, who had initially claimed "double standards" by KSSB in awarding "special treatment" to another company.
The hearing then adjourned sine die .
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