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We Reiterate That The Truth About The Malaysian Perwaja Steel Saga Must Be Revealed Statement by Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong on the 1998 Auditor-General's Report On the Government-guaranteed loans of Perwaja Terengganu Sendirian Berhad on 14 June 2000 | |||||||
| Like steel industries in other nations, Malaysian national steel industry has a tortuous path. Since 1982, the national steel company, Perwaja Terengganu Sendirian Berhad ( Private Limited), has had a chequered history: a saga of losses, misfortunes and mismanagement. Since 1996, the Anti-Corruption Agency, ACA, has been investigating the company. We are still waiting for its findings to be made public. Time is the father of truth. The 1998 Auditor-General's report records that the Government guarantees loans for five privatised companies amounting to RM32,263.53 millions. Out of these, the Perwaja loans total RM5,122.73 millions, RM2,745 millions and RM2,377.73 millions being domestic and foreign debts respectively. In 1998, Perwaja has arrears of loan repayment of RM893.46 millions. The limited figures on Perwaja loans are only the tip of the iceberg. There are twists and turns. We have to know the truth because the public are paying billions of ringgits for the steel company. In 1982, the Heavy Industries Corporation of Malaysia Berhad, the state-owned Hicom, and Nippon Steel jointly formed the company. The Nippon billet-making plant was said to be only | |
a prototype and Perwaja went bust. The company continues to slide down a tortuous and devious path, incurring mammoth losses. For example, four years ago, the Government admitted that Perwaja was facing difficulties: irregularities, mismanagement and up to the ears in debt. The Government is reported to absorb the company's accumulated losses of RM9.9 billions. In April 1996, ACA began investigations of Perwaja. From 1988 to 1995,, Tan Sri Eric Chia managed it until. An internal audit in 1995 showed that it was again insolvent. Meanwhile, Tan Sri Chia resigned. The Government has privatized Perwaja, appointing Equal Concept Sendirian Berhad. This private limited company is 51% owned by Maju Holdings and 49% by the government. Granted that any country would have a tough time creating a viable steel industry. But, business is business. The people refuse to accept billions of public funds going down the drain. They can make neither head nor tail of the goings-on. The mass media have Perwaja news from time to time. How often do they get the gist? Truth often hides in an ugly pool. One of these days, Malaysians may know the truth of Perwaja saga.
Dr Tan Seng Giaw | |||||
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