Zambry should explain and be fully responsible for the increase in cost of the Movie Animation Park Studios (MAPS) from the original cost of RM390M to the actual cost of RM607M. Why did Zambry allow PCB Development Sdn Bhd (PCBD) which owns only 51% of Animation Theme Park Sdn Bhd (ATP) to be solely responsible for the additional funding to construct and develop MAPS by approving three shareholder advance agreements with a total of RM250M?

As the former Chairman of Perbadanan Kemajuan Negeri Perak (PKNP) who has direct control over Perak Corporation Berhad (PCB), PCBD and ATP, Zambry must explain and be fully responsible for the increase in cost of MAPS from the original cost RM390M to the actual cost of RM607M. A fact that was never disclosed by the previous administration.

This is most shocking and appalling as RM607M represents 57.21% of the 2019 Perak State Budget which stood at RM1.061 Billion. As a comparison, the RM42 Billion 1MDB Scandal is only 13.35% of the 2019 National Budget at RM314.5 Billion.

Zambry must also explain why did he allow PCBD which owns only 51% of the share of ATP to be solely responsible for the additional funding of MAPS by approving three shareholder advance agreements totaling RM250M.

Out of the RM250M approved shareholder advance agreement, PCBD has advanced RM198M of payment to ATP, with an additional RM6M advance payment from Perak Corporation Berhad (PCB) to ATP. Whereas RSG Maps Sdn Bhd (RSGM) which holds 49% of ATP come out with RM6.25M of advance payment to ATP. This means a total of RM204M shareholder advances was given to ATP by PCB and its subsidiary PCBD which holds 51% of ATP, whereas RSGM which holds 49% of the shares only come up with RM6.25M.

This is totally unacceptable and an unfair arrangement and Zambry must be fully responsible and held accountable for this decision.

The remaining project fund was financed by a RM280M syndicated term loan and the issuance of ordinary and preference share capital to the shareholders.

The internal audit report also shows that out of the RM607M project cost, a total of RM413M was paid either directly to, in the form of advances or payments on behalf of Sanderson Design Group (Malaysia) Sdn Bhd (SDGM), the main contractor of MAPS.

SDGM was transferred from Sanderson Design Group (Singapore) Pte Ltd to Calgary Global Group Limited, a company incorporated in the British Virgin Island on 31 October 2017.

Calgary Global Group Limited submitted a petition to wind up SDGM on the 15 Feb 2018. SDGM is currently in receivership. In May 2018 during the creditor meeting called by the appointed liquidator we were told that SDGM only has RM1500 left in their bank accounts. PCBD have filed a claim with the liquidator amounting to RM131M.

Although the Special Internal Audit Report is inconclusive of any misconduct of fraudulent acts that may had occurred during the construction and development of MAPS, there are a lot of questionable decisions and lopsided agreements that could be raised. I will be issuing one media statement a day by throwing a question for Zambry to answer every day starting from tomorrow till the opening of Perak State Assembly on the 16 April 2019.

I agree with the Internal Audit opinion that the review on SDGM accounts and records is vital to determine the outflow of cash from SDGM. I will raise this in the coming State Public Accounts Committee meeting and suggest to the PAC to look into SDGM accounts and get to the bottom of this issue.

Media Conference by Chairman of the Audit Committee Perak Corporation Berhad and Keranji State Assemblyman Chong Zhemin on 23 March 2019 at MAPS, Bandar Meru Raya Ipoh.

 

Annex

PKNP – Perbadanan Kemajuan Negeri Perak

PCB – Perak Corporation Berhad

PCBD – PCB Development Sdn Bhd

ATP – Animation Theme Park Sdn Bhd

RSGM – RSG Maps Sdn Bhd

SDGM – Sanderson Design Group (Malaysia) Sdn Bhd