A corruption watchdog has termed the controversial RM1.02 billion Penang Outer Ring Road (Porr) project as a 'first class corruption case study'.

Transparency International Malaysia chairperson Tunku Abdul Aziz Tunku Ibrahim said the project was an example of bad governance.

"It has an enormous potential for unmitigated disaster. It is an example of everything that constitutes bad planning, lack of transparency and questionable privatisation," he told some 200 people at a talk in Penang on Saturday.

The talk, themed 'Penang Lecture 2004: Governance in Search of Public Trust' was organised by state government think-tank Social Economic Research Institute (Seri).

Conflict of interest

Meanwhile, Abdul Aziz said a conflict of interest was prevalent in this case as Ahmad Ismail - the appointed executive chairperson of contractor Peninsular Metroworks Sdn Bhd (PMW) - also sat on the municipal council's property, construction and traffic management committees. Ahmad is also the Bukit Bendera Umno head.

"It's a breach of the code of ethics and a clear case of conflict of interest," he added.

State officials present at the talk were former PMW shareholder and Penang Governor Abdul Rahman Abbas as well as executive councillors Toh Kin Woon and Teng Chang Yeow.

During the polls, Penang Chief Minister Dr Koh Tsu Khoon stressed on the need for the project in order to ease traffic congestion.

The project has met stiff resistance from many social interest groups as well as the affected residents' anti-porr committee.

Local social reform movement Aliran has claimed that the objections were based on lack of transparency, conflict of interest as well as the lack of experience, management and financial skills of the contractor.


SUSAN LOONE is malaysiakini's Penang-based contributor.