Federal Court Kuala Lumpur
Police Report No. Tun HS Lee 30375/99
Dated 12th November 1999 at 12.22 p.m.
TRANSLATION OF THE ORIGINAL
I hereby submit documents from Tan Sri Ting Peck Khing addressed to Tun Daim Zainuddin and Dato' Seri Dr. Mahathir plus a directive from the Prime Minister to me, as the Finance Minister then, to speed up the approval of payment to Tan Sri Ting Peck King, contravening the law and financial procedures and without prior reference to the auditors, Price Waterhouse, 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 directly 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, Putrajaya and KLCC. 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 arbitrarily to 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 Telecoms 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. This included Clearway where Robert Tan's driver, Baharuddin M. Arip, was the Director as well as of 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 obtained 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 of 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 son was also appointed to the management of the project with a 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, and TNB to also hold equity.
The said companies, along with SESCO, 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 the companies related to Ekran. For example, Pacific Chemicals was given logging contracts covering 20,000 hectares in the Bakun area. FCW Holdings were promised a 4 billion Ringgit contract for the manufacture of submarine cables that also involves the interests of Dato' Seri Dr. Mahathir's son.
In the end, when it became obvious that the project was going to fail,
and that we will 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
Furthermore, too many companies' results were found to lack transparency,
raising problems with the KLSE and 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 which had
The application for compensation amounting to 2.2 billion Ringgit was excessive as revealed in Tan Sri Ting's letter to Tun Daim dated 11 July 1998 (Exhibit one). His letter to the Prime Minister mentioned advance payment of 120 million Ringgit. The Prime Minister, in his memo dated 12 August 1998, instructed me to pay, disregarding financial regulations procedure (exhibit two).
I am aware that a few previous police reports, together with documents
and letters, in particular those involving
Dato' Dr. Mahathir and Tun Daim, were not investigated nor was any action taken, as if these leaders are immune from investigation and action.
On the other hand, the Alternative Party leaders are subjected to excessive
action and pressure. I urge the police to act
professionally. Again I submit documents and letters, which show that a conflict of interest, bribery, and abuse of power
involving Dato Seri Dr Mahathir and Tun Daim exists.
We are still waiting for investigation and action by the police and the Anti-Corruption Agency.
Exhibits one and two are attached herewith.
(Signed by Dato Seri Anwar Ibrahim)