DAP candidate Jeff Ooi is giving outgoing Penang chief minister Dr Koh Tsu Koon 48 hours to respond to allegations of a contract-for-reinvestment deal involving the state government and a multinational corporation.

jeffooi pkr pc allegations 010308 pic1PKR Penang chief Zahrain Mohamed Hashim alleged on Thursday that Koh had written to Prime Minister Abdullah Ahmad Badawi seeking to award a RM1 billion contract to a multinational company in exchange for a RM350-million reinvestment.

Zahrain and Ooi - who both claim to have seen copies of the letter said to be written in December 2007 - elaborated on its contents at a joint press conference this morning at PKR's Bayan Baru operation centre in Penang.

Describing it as an “arm-twisting missive to the prime minister”, Zahrain claimed that the letter stated that the corporation would withdraw its investments in Malaysia if the RM1 billion contract was not awarded.

Zahrain - who is contesting the Bayan Baru parliamentary seat - said that the letter also informed that 10,000 jobs will be lost consequently and implored Abdullah to decide quickly in anticipation of the general elections.

Also present today were PKR Penang candidates Sim Tze Tzin (Pantai Jerejak), Raveentharan V Subramaniam (Batu Uban) and Abdul Malik Kassim (Batu Maung) - all of whom are contesting for state seats in the Bayan Baru parliamentary constituency.

Three companies involved

Declining to name the three multinational corporations embroiled in the allegation, Ooi - who is also DAP's e-campaign director - referred to them only as M-corporation, N-consortium and C-consortium.

The popular blogger explained that C-consortium and M-corporation were keen to maintain a contract for an analogue radio network, which was due for an upgrade to the digital system.

“There was a limbo during Mahathir transition. It was finally Koh who broke the impasse for this company to get a contract to continue to maintain this analogue radio network for a particular intelligence agency,” Ooi added.

According to Ooi, N-consortium - the third party involved - was “the favoured party” to handle the digital migration of radio networks.

He also questioned the need for an analog radio system to be maintained alongside a digital one.

Copy of letter unavailable

Since the allegations were made on Thursday, Zahrain had not produced the said letter.

When pressed by reporters at the press conference, both Zahrain and Ooi refused to confirm if they were in the midst of obtaining a copy of the letter.

They also declined to comment if the letter they had claimed to see was classified as an official secret.

In related developments, Koh responded to the ultimatum when met by journalists an hour later at Han Chiang College - a Chinese community funded college - in Penang.

The out-going chief minister and acting Gerakan president reiterated that he will not respond the allegations unless the companies in questioned were named.

The ultimatum expires at noon on Sunday. It is not clear what the opposition would do should there be no response from Koh.


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