72-hours ultimatum to the Negeri Sembilan Mentri Besar to explain why an EXCO member is a Director of a private company.

Media Statement
by Loke Siew Fook

(Seremban, Saturday): I am giving the Negeri Sembilan Mentri Besar Datuk Seri Mohamad Hassan 72 hours to explain why a current Negeri Sembilan State Executive Councillor (EXCO Member) is sitting on the Board of Directors in one of the two companies named for the privatisation of maintenance of state roads, failing which an Anti-Corruption Agency (ACA) report would be lodged asking for investigation into the two companies and the EXCO Member.

During the last EXCO meeting on 3rd May 2005, the Mentri Besar has announced that some 1,300km of state roads currently manned by the Public Works Department will be privatised. He said the state government decided to accept a proposal on the privatisation presented by a joint venture firm set up between Gemencheh-Granite Sdn Bhd and Gandingan Tenggara Sdn Bhd with the condition that the firm will have to invest RM60mil upfront to upgrade the state roads. He further said that the state government will pay about RM7mil a year to the firm under a 15-year concession agreement and the plan hadbeen submitted to the Economic Planning Unit for approval. (The Star, 4thMay 2005).

I had made a search through the Companies Commission of Malaysia on the background of the companies and I found out that a current EXCO member is a Director in one of the two companies. The particulars in the document I possessed are extracted from company's documents registered up to 02/02/2005.

The Article XXXVIII (6) of the State Constitution clearly states that;

A member of the Executive Council shall not engage in any trade, business or profession connected with any subject or department for which he is responsible and shall not, so long he is engaged in any trade, business or profession, take part in any decision of the Executive Council relating to that trade, business or profession or in any decision likely to affect his pecuniary interest therein.

I had on a media conference on 5th May 2005 asked the Mentri Besar to explain the matter within a week. The week has passed and there has been no response at all from the Mentri Besar so far. I view this as a very serious
matter and the state government must clear the air before the privatisation project is allowed to proceed.

I had also found out that the other company in the joint-venture firm was only registered on 17th June 2004. As of 30/11/2004, the issued capital of the company is only RM2. The Mentri Besar must explain on what basis and
criteria the state government accepted the proposal of this company?

As the Mentri Besar has pledged when he took over the state administration 14 months ago that he will lead a clean, trustworthy and transparent government, I am giving the state government the benefit of doubts and he
must explain all the issues that I have raised in the coming post-EXCO media conference on the coming Monday.

If the Mentri Besar fails to provide a satisfactory explanation within the next 72 hours, the state DAP will proceed to officially lodge a report with the state ACA asking for investigation into the two companies and the EXCO member.



* Loke Siew Fook, DAPSY National Secretary and Negeri Sembilan State Assemblyman for Lobak.