Media statement by Lim Guan Eng in Komtar, George Town on Friday, 3^rd August 2012: 

BN is dishonest and a political cheat for playing the double-faced game  

BN is dishonest and a political cheat for playing the double-faced game of opposing the privatisation of Penang Port on the one hand and on the other hand allowing Seaport Terminal(Johor) Sdn Bhd(Seaport) to finalise the takeover of Penang Port by December this year. Unfortunately, it would appear that the federal government has given a letter of award without disclosing any details and providing any assurances to Penangites on the future of this public good.

The BN federal government must come clean on the Penang Port privatisation exercise by confirming Seaport’s director Datuk Mohd Sidik Shaik Osman statement in the New Straits Times on 2 August that Seaport has already received the letter of award and will be in charge by the end of this year. In that case what is the point of BN Penang opposing this privatisation exercise but is another fait accompli that not only deceives others but also oneself?

Today Transparency International President Datuk Paul Low had slammed the privatisation exercise as violating the practices of good governance and transparency. He said awarding the contract to Seaport without an open competitive tender implies that the Federal government does not practice what it preaches on accountability and fighting corruption. Datuk Low even urged the Malaysian Anti-Corruption Commission(MACC) to look into allegations by the Penang Chinese Chamber of Commerce that the disposal of the Penang Port contravenes the Anti-Competition Act.

Penangites have the right to know the terms of this deal, and whether this privatisation is nothing more than a piratisation exercise, as it involves an important public good that is the Penang Port. So far there have only been sketchy details with Datuk Mohd refusing to state the amount of capital injection by Seaport into Penang Port but with vague remarks of a capital expenditure of RM1 billion by 2017 and RM4.7 billion by 2022.

Will the privatisation exercise be automatically terminated if Seaport fails to invest these sums of money? And why has Seaport refused to immediately undertake the RM353 million dredging of the port channel project? The Penang state government will only support the privatisation of Penang Port if it fulfils 5 principal conditions:-

a) Conduct an open competitive tender and not a limited tender open only to those invited to make a bid.

b) Clear and definite repudiation by the Finance Minister or Transport Minister of Penang Port Commission Chairman Datuk Seri Dr Chua Soi Lek’s assertions that Penang Port will be a feeder port that will be secondary to Seaport’s two other ports in Port of Tanjung Pelepas (PTP) and Pasir Gudang port;

c) Immediate implementation of the RM 353 million project to dredge the port channel to at least 15-17 meters immediately before the privatisation is completed;

d) Full public consultation with the stakeholders in the shipping industry, the Penang state government and the people of Penang;

e) Public and complete disclosure of plans and of amounts invested by Seaport how this privatisation of a public good(Penang Port) can benefit Penangites and restore Penang Port into a world class regional commercial port

All these lies, half-truths and empty promises are proof that the Penang Port privatisation exercise is going to go ahead without any disclosure of information and no assurances that the RM353 million dredging works will be carried out as promised in the 9th and 10th Malaysia Plans. Once again, the BN federal government has failed to keep the interests of Penangites at heart by going ahead with the privatisation of the Penang Port without providing guarantees that it will not end up as another piratisation exercise for private profit at the expense of public interest.

*Lim Guan Eng, Penang Chief Minister