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Saturday 14 November 2009

Declassified Selangor papers reveal more lopsided deals

By Neville Spykerman - The Malaysian Insider

SHAH ALAM, Nov 12 – Reforestation projects touted by former mentri besar Datuk Seri Dr Khir Toyo (pic) to bring in RM800 million revenue within 20 years has so far contributed barely RM500,000 in revenue to Selangor, declassified state documents showed.

The projects, initiated by Dr Khir during his tenure, were meant to “balance physical development and the environment” in Selangor, the country’s most developed state.

But the state documents, declassified by the current Pakatan Rakyat government, revealed these joint-venture projects between the Selangor Agriculture Development Corporation (PKPK) and private companies are lopsided with little benefits to the state.

Mentri Besar Tan Sri Khalid Ibrahim said the income generated from these ventures have been meagre.

“We cannot even say it reached a million ringgit,” said Khalid, who used provisions under the Official Secrets Act (OSA) to declassify the files.

He said the documents would show “a pattern” in the way the slew of joint-venture projects were awarded, to the same people, in different companies.

Some of these were farmed out to dormant companies, which he noted did not have either the skills or expertise to carry out reforestation.

“There is no justification for why these people were chosen and there were no tenders,” said Khalid, whose Pakatan Rakyat government swept out Dr Khir’s Barisan Nasional administration in Election 2008.

These lopsided projects, he added, amounts to a huge opportunity loss to tax-payers in the state.

“Selangor would have been better off not destroying the forest,” Khalid said.

According to the documents, the four joint venture projects signed between 2001 and 2007 involved almost 11,000 hectares at the forest reserves in Bukit Tarek, Rantau Panjang, Sungai Jeloh and Bukit Belata.

The parcels of land were leased to the companies for between 50 and 60 years for projects including reforesting the areas with commercial trees, including teak, Sentang and rubber.

Despite early concerns that the deals were questionable, nothing was done to stop the ventures.

Notable politicians who were mentioned as directors of these companies, currently or at the time the deals were signed, includes former Agriculture Minister Tan Sri Sanusi Junid and Sementa assemblyman Datuk Abdul Rahman Palil, who was a Selangor executive councillor in Dr Khir’s administration.

Khalid added today’s revelation was intended to drive home the point that there was a need for a Freedom of Information law so political leaders will be more careful in their decision making.

“Transparency protects taxpayers from the misuse of power by leaders,” he said.

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