Mukhriz: Kedah's PNG fumble a blot on M'sia's image
The Kedah government's losses incurred through their logging and plantation investment in Papua New Guinea has tarnished the country's image, said International Trade and Industry (Miti) deputy minister, Mukhriz Mahathir.
The Kedah government's losses incurred through their logging and plantation investment in Papua New Guinea has tarnished the country's image, said International Trade and Industry (Miti) deputy minister, Mukhriz Mahathir.
The investment, involving millions of ringgit of tax payers money, in this dubious project must be immediately investigated, he said.
"When Malaysian companies invest abroad, the opposition criticises the matter in Parliament, saying it's a sign of local companies' lack of confidence in the country's economy.
"They accuse the government of abusing their powers. Now the audit report has exposed their wrong doings and it's completely unacceptable. The police must investigate the matter," he told reporters after a Miti gathering with public and private tertiary students at Universiti Utara Malaysia, in Kedah.
Mukhriz, who is also Jerlun member of parliament, was commenting on the 2011 Auditor General's Report which found the Kedah government had incurred losses in their Papua New Guinea logging and plantation project.
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It was reported on Oct 12 2008, that Kedah Corporation Berhad (KCB), a fully owned subsidiary of the Kedah Chief Minister Incorporated had signed a share sale agreement with MAS Incorporate (PNG) Ltd for the purchase of 70 percent equity in the company.
MAS, a company registered in Papua New Guinea, was given the offer to develop two lots of land totaling 114,429 hectares owned by Baina Agro Forest Limited and Magarida Resources Development Limited.
KCB had to pay RM1.21 million to the vendor (a former owner of MAS appointed by KCB to run the business in Papua New Guinea) as a goodwill payment for the transfer of the 70 percent equity to KCB, and the payment was made in two instances in 2008, but the terms of the agreement did not favour KCB.
On a separate development, Mukhriz said the Umno Supreme Council's decision to form a special committee to monitor and take immediate action against any members sabotaging the party or BN candidates will strengthen the party.
"Our members are all fully prepared to reject practices which lean towards losing. So like it or not we cannot avoid taking this serious action," he said.
- Bernama
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