Anwar lodges police report over Bakun Dam corruption

By Anwar Ibrahim

This is the English version of the text of the report by Datuk Seri Anwar Ibrahim on 12 November 1999. It gives us the background to the most expensive project in Sarawak todate of which the cost overruns from RM4 billion to RM15 billion remains a mystery and the Sarawak government is now contemplating to spend our Sarawakians money to the tune of RM7 billion to buy this white elephant from the federal government. – HU Editor

Report prepared by Anwar Ibrahim over the alleged corruption over the Bakun Dam issue.

Prime Minister and Finance Minister among top officials named

Police Report Federal Court Kuala Lumpur
Police Report No. Tun HS Lee 30375/99
Dated 12th November 1999 at 12.22 p.m.

I hereby submit documents from Tan Sri Ting Peck Khing (whose Ekran Berhad company was awarded the Bakun Dam project by the government) addressed to Tun Daim Zainuddin (present Finance Minister) and Dato Seri Dr. Mahathir Mohamad (Prime Minister of Malaysia), plus a directive from Dato Seri Dr. Mahathir to me, as the Finance Minister then, to speed up the approval of payment to Tan Sri Ting, contravening the law and financial procedures and without prior reference to the auditors, Price Waterhouse (who did an audit to determine how much work had Ekran completed/not completed after Bakun dam was deferred amid the economic crisis), who were appointed to scrutinise the application for compensation from Ekran, who were undertaking the construction of the Bakun Dam project in Sarawak.

The application for payment of compensation was sent by Tan Sri Ting direct to Tun Daim although he did not have any authority to approve it. The application was also sent direct to Dato Seri Dr. Mahathir, who again demonstrated his method of implementing mega projects such as Perwaja (Mahathir’s pet steel company who suffered billion dollars loss in which investigation is supposedly still on going), Putrajaya (the multi-billon new administrative centre of the Federal Government) and KLCC (Kuala Lumpur City Centre, the world’s tallest building).

He had approved the Bakun project without complying with privatisation or tender procedures. He had launched the project even before Cabinet approval. As per my previous police report with regards to Perwaja, he had established direct links with Tan Sri Ting, bypassing the Ministry and agency concerned.

The Cabinet only approved it later and he asked me to monitor it as the Chairman of the Cabinet Committee on Bakun. In fact, in the application for compensation, as stated in the letters attached, I was totally ignored, though at that point in time, I was the Finance Minister and the Chairman of the Cabinet Committee for Bakun. My firmness and reluctance to arbitrarily approve the allocation without complying with the financial procedures and regulations resulted in my being doubted.

The majority interest in the Bakun project is held by Ekran, which is controlled by Dato Seri Dr. Mahathir’s close friend and business partner of Tun Daim, that is Tan Sri Ting Peck Khing. Rasip Harun, the business partner of Tun Daim, also held equity.

Rasip Harun and Robert Tan Hua Choon, another business partner of Tun Daim, controlled Jasa Kita. Jasa Kita was involved in the abuse of the Telecom shares allocation scandal, which was supposedly allocated by Daim to the Indian community while he was the Finance Minister.

On the other hand, the shares concerned were diverted to three companies related to Dato Samy Velu (President of the Malaysian Indian Congress, the major Indian component party of the ruling natioanl coalition government). This included Clearway (a company), in which Robert Tan’s driver, Baharuddin M. Arip, was a Director, as well as Jasa Kita.

Robert Tan’s other company, Spanco, was hastily given approval for the privatisation of government transport by the Privatisation Unit of the Prime Minister’s Department. The company’s services were criticised as weak and costly, and I had asked for some clauses in the agreement to be reviewed.

Because Tun Daim had an interest, all my comments and objections were sidelined by Dato Seri Dr. Mahathir.

The Bakun project requires Sarawak government support. Therefore, Ekran secured the involvement of two sons of the Chief Minister, Tan Sri Abdul Taib Mahmud: that is, Mahmud Abu Bekir and Sulaiman Abdul Rahman who hold equity in Ekran and Pacific Chemicals.

Thereby, Ekran easily obtained timber concessions for thousands of acres surrounding the dam area, although the local residents and environmental organisations strongly protested.

Other than that, Dato Seri Ling Liong Sik’s (President of the Malaysian Chinese Association, the major Chinese component party of the ruling national coalition government) son was also appointed to the management of the project with generous remuneration.

With the endorsement and approval of Dato Seri Dr Mahathir, the decision to approve the project was made without reference to the Board of Directors of the Bakun company, or the Finance Ministry, or the Cabinet Committee.

At that point in time, when the project viability was in doubt, the Prime Minister directed HICOM Holdings, EPF (Employees Provident Fund), and TNB (Tenaga Nasional Berhad, the West Malaysian electricity generator and provider) to also hold equity.

The said companies, along with SESCO (Sarawak Electricity Supply Corporation, the electricity generator and provider), continuously protested because Tan Sri Ting had made the decision on his own, “with the Prime Minister’s agreement”, without the prior approval of the Board of Directors.

The contract was arbitrarily awarded to companies related to Ekran. For example, Pacific Chemicals (another of Tan Sri Ting’s flagship company) was given logging contracts covering 20,000 hectares in the Bakun area. FCW Holdings (another of Tan Sri Ting’s company) was promised a 4 billion ringgit (about US$1 billion) contract for the manufacture of submarine cables that also involves Dato Seri Dr. Mahathir’s son’s interests.

In the end, when it became obvious that the project was going to fail, and that we would be repeating the experience of Perwaja’s losses having to be borne by the government, I used the economic crisis that we were facing at that time as the excuse to cancel the project.

Furthermore, too many decisions involving these companies were found to be lacking tin transparency, raising problems with the KLSE (Kuala Lumpur Stock Exchange) and the Securities Commission.

Action against Ekran did not take place because of the protection given by the Prime Minister and Tun Daim. The termination of the project not only incurred the anger of both of them, but also of the families and crony companies who had interests.

The application for compensation amounting to 2.2 billion Ringgit (about US$580 million) was excessive – as revealed in Tan Sri Ting’s letter to Tun Daim dated 11 July 1998 (Exhibit one). His letter to Dato Seri Dr. Mahathir mentioned advance payment of 120 million Ringgit (about US$31.6 million). The Prime Minister, in his memo dated 12 August 1998, instructed me to pay, disregarding financial procedure regulations (Exhibit two).

I am aware that several previous police reports, accompanied by documents and letters, in particular those involving Dato Seri Dr. Mahathir and Tun Daim, have not been investigated nor has any action been taken, as if these leaders are immune from investigation and action.

On the other hand, the Alternative (Opposition) Party leaders are subjected to repressive actions and pressure. I urge the police to act professionally.

Again, I submit documents and letters, which show that conflicts of interest, bribery, and abuse of power involving Dato Seri Dr Mahathir and Tun Daim exist.

We are still waiting for investigation and action by the police (whose minister is the Mahathir appointed Deputy Prime Minister, and former Foreign Minister Dato Abdullah Badawi) and the Anti-Corruption Agency (which reports to the Prime Minister).

Exhibits one and two are attached herewith.

Thank you.

(Signed by Dato Seri Anwar Ibrahim)

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NAK TAHU TAK SIAPA TAN SRI TING PEK KHIING YANG NAK DIBERI PROJEK 30 BILLION DARI TUN M UNTUK BUAT NEW LANGKAWI CITY

Tiada orang lebih kenal beliau selain Anwar Ibrahim.  Jom baca biografi TPK yang Anwar sempat tulis dtahun 1999

SKANDAL EMPANGAN BAKUN : LAPORAN POLIS OLEH ANWAR IBRAHIM

Laporan Anwar pada 12.11.1999 di Balai Polis berhubung dengan skandal Projek Empangan Bakun.

TUN HS LEE 30375/99

12.22 tengahari, 12 Nov 1999

Laporan Polis

Mahkamah Persekutuan

K. Lumpur

Saya ingin mengemukakan dokumen surat-surat dari Tan Sri Ting Peck King kepada Tun Daim Zainuddin dan kepada Dato' Seri Dr Mahathir Muhammad serta nota arahan Dato' Seri Dr Mahathir kepada saya selaku Menteri Kewangan supaya segera meluluskan pembayaran kepada Tan Sri Tingtanpa mematuhi peraturan dan prosedur kewangan atau merujuk terlebih dahulu kepada Syarikat Juruaudit Price Waterhouse yang telah dilantik meneliti permohonan pampasan dari Syarikat Ekran yang menyelenggara pembinaan projek Empangan Bakun di Sarawak.

Permohonan bayaran gantirugi telah dibuat oleh Tan Sri Ting terus kepada Tun Daim meskipun beliau tidak berkaitan dari segi bidang kuasa atau otoriti meluluskannya. Permohonan juga dibuat terus kepada Dato' Seri Dr Mahathir yang sekali lagi membuktikan cara beliau mengendalikan projek-projek mega seperti Perwaja, Putrajaya dan KLCC. Projek Bakun telah beliau luluskan tanpa mematuhi Prosedur Penswastaan atau tender. Beliau melancarkan projek tersebut sebelum kabinet meluluskannya. Sapertimana juga dalam laporan polis saya yang terdahulu bersabit projek Perwaja, beliau menjalin perhubungan langsung dengan Tan Sri Ting dan mengenepikan kementerian dan agensi berkaitan. Kabinet hanya menggerakkan kemudiannya dan meminta saya mengawasinya selaku Pengerusi Jawatankuasa Kabinet Bakun. Bahkan dalam kes permohonan pampasan tersebut sapertimana yang tertera dari surat-surat yang disertakan, saya diketepikan samasekali meskipun pada ketika itu saya adalah Menteri Kewangan dan Pengerusi Jawatankuasa Kabinet Bakun. Ketegasan saya serta keengganan meluluskan peruntukan dengan sewenang-wenangnya tanpa mematuhi peraturan kewangan dan dasar berhemat menyebabkan saya dicurigai.

Kepentingan terbesar projek Bakun dipegang oleh Syarikat Ekran yang dikuasai oleh sahabat karib Dato' Seri Dr Mahathir dan rakan seperniagaan Tun Daim iaitu Tan Sri Ting Peck King.. Rasip Haron, rakan perniagaan Tun Daim turut memegang ekuiti. Rasip Haron dan Robert Tan Hua Choon, seorang lagi rakan perniagaan Tun Daim menguasai syarikat Jasa Kita.Jasa Kita terlibat dalam skandal Saham STM (Telekom) kerana penyalahgunaan pengagihan saham yang kononnya diperuntukkan oleh Tun Daim ketika menjadi Menteri Kewangan kepada masyarakat India. Tetapi disebaliknya, saham-saham tersebut disalorkan kepada tiga syarikat yang mempunyai hubungan dengan Dato' Samy Vellu. Ini termasuk Syarikat Clearway di mana pemandu Robert Tan, Baharuddin M. Arip adalah pengarah Clearway dan Jasa Kita.

Syarikat Robert Tan lainnya, Spanco kemudiannya dengan secara terburu-buru mendapat kelulusan penswastaan kenderaan Kerajaan, oleh unit Penswastaan Jabatan Perdana Menteri. Perkhidmatan syarikat dipertikai sebagai lemah dan mengenakan kos yang mahal, bahkan saya telah meminta beberapa peruntukan perjanjian diteliti semula. Oleh kerana Tun Daim umumnya mempunyai kepentingan, segala teguran dan bantahan diketepikan oleh Dato' Seri Dr Mahathir.

Projek Bakun memerlukan dukungan penuh Kerajaan Negeri Sarawak. Maka syarikat Ekran telah mendapatkan penyertaan dua orang putera Tan Sri Abdul Taib Mahmud, Ketua Menteri iaitu Mahmud Abu Bakir dan Sulaiman Abdul Rahman sebagai pemegang ekuiti dalam Ekran dan Pacific Chemicals. Maka Ekran dengan mudah memperolehi konsesi ribuan hektar balak disekitar kawasan Empangan, meskipun masyarakat asli tempatan dan pertubuhan alam sekitar membantah keras. Selain itu, anak Dato' Seri Ling Liong Sik turut dilantik dalam pengurusan projek dengan ganjaran lumayan.

Dengan restu dan kelulusan Dato' Seri Dr Mahathir, keputusan dan projek serta kontrak diluluskan tanpa merujuk kepada Lembaga P engarah Syarikat Bakun atau Kementerian Kewangan. Diketika itu, tatkala viabiliti projek dicurigai, Perdana Menteri telah mengarahkan supaya HICOM Holdings, KWSP dan TNB turut memegang ekuiti. Syarikat-syarikat tersebut bersama SESPO Sarawak terus-menerus membantah kerana Tan Sri Ting mengambil keputusan bersendirian "dengan persetujuan Perdana Menteri" " tanpa mendapat kelulusan Lembaga Pengarah terlebih dahulu. Kontrak dianugerahkan dengan sewenang-wenang kepada syarikat-syarikat yang berkaitan dengan Ekran. Umpanya, Pacific Chemicals memperolehi kontrak pembalakan kawasan Bakun seluas hampir 20 000 hektar. FCW Holdings dijanjikan kontrak 4 billion ringgit pembinaan kabel submarine dasar laut yang turut melibatkn kepentingan syarikat anak Dato' Seri Dr Mahathir.

Tan Sri Ting Pek King - Pengerusi EKRAN Berhad

Dan akhirnya setelah nyata projek tesebut akan gagal dan buntu serta akan mengulangi pengalaman kerugian Perwaja yang terpaksa ditanggung oleh kerajaan, saya menggunakan alasan krisis ekonomi yang melanda ketika itu untuk membatalkan projek tesebut. Lagi pun terlalu banyak keputusan didapati tidak telus dan menimbulkan masalah dengan Bursa Saham Kuala Lumpur dan Suruhanjaya Sekuriti. Tindakan terhadap Ekran gagal diambil kerana perlindungan yang diberikan oleh Perdana Mentei dan Tun Daim. Pembatalan projek bukan sahaja menimbulkan kemarahan mereka berdua tetapi juga keluarga dan syarikat kroni yang berkepentingan.

Permohonan pampasan sebanyak 2.2 billion ringgit adalah keterlaluan sepertimana yang terpapar dalam surat Tan Sri Ting kepada Yun Daim bertarikh 11 Julai 98 (Eksibit Satu). Surat beliau kepada Dato' Seri Dr Mahathir menyebut mengenai pembayaran awal sebanyak 120 juta ringgit. Perdana Menteri dalam notanya bertarikh 12 Ogos '98 mengarahkan saya membayar tanpa merujuk kepada peraturan dan prosedur kewangan (Eksibit Dua).

Saya sedar bahawa beberapa laporan polis terdahulu beserta dokumen dan surat terutama yang melibatkan *Dato' Seri Dr Mahathir dan Tun Daim tidak disiasat dan diambil tindakan.* Seolah-olah pemimpin-pemimpin tersebut adalah kebal dari siasatan dan tindakan. Disebaliknya, pemimpin-pemimpin parti alternatif terdedah kepada tindakan dan tekanan berlebihan. Saya menggesa agar pihak polis berkhidmat secara profesional. Sekali lagi saya mengemukakan dokumen dan surat yang menunjukkan bahawa wujudnya *percanggahan kepentingan, rasuah dan penyalahgunaan kuasa yang melibatkan Dato' Seri Dr Mahathir dan Tun Daim.* Kami masih menunggu siasatan dan tindakan pihak polis dan Badan Pencegah Rasuah.

Disertakan Eksibit Satu dan Eksibit Dua.

Terima kasih.

Wassalammualaikum WarahmatuLlah.

(tandatangan : Anwar Ibrahim)