19 December 2008

Kit Siang wants Tee Keat to keep his word on PKFZ - malaysiakini

By Adib Zalkapli

KUALA LUMPUR, Dec 19 — DAP parliamentary leader Lim Kit Siang said today Transport Minister Datuk Seri Ong Tee Keat must keep his promise to tell all about the RM4.6 billion Port Klang Free Zone (PKFZ), and not just provide a chronology of events.
"Now, Ong is backpedalling from his promise, as he said yesterday that he would announce the chronology of events in the PKFZ issue but not its financial aspects," said the Ipoh Timor MP in a statement.
Yesterday Ong reportedly said the audit firm PriceWaterhouseCoopers had yet to conclude its report on the alleged scandal.
"This is a most extraordinary turn of events as more than a month ago, Ong had said publicly that the PricewaterhouseCoopers report into the PKFZ scandal was ready to be made public 'soon'," said Lim.
He added that instead of providing the chronology of events in the PKFZ scandal, Ong should just answer the questions he posed eight months ago.
Opened in 2006, PKFZ is an integrated free commercial and industrial zone in Port Klang, but it has turned into a white elephant with few tenants. It is also facing huge losses amid allegations of impropriety. Former Transport Minister Datuk Seri Chan Kong Choy was believed to have been dropped as minister and did not contest the general election in the fallout from the scandal.
Lim alleged that the Port Klang Authority had bought the 1,000 acres for the PKFZ at RM25 per square foot when the Treasury recommended that the land be acquired for RM10.
He said the Cabinet had set a condition that for every RM100 million variation in the development cost, Cabinet approval is required.
"The first condition was breached when the PKFZ project ballooned from RM1.1 billion to RM4.6 billion requiring government intervention and bailout while the second condition was breached with the original PKFZ development cost of RM400 million ballooning to RM2.8 billion without any prior Cabinet approval ever being sought for every RM100 million increase in development cost," said Lim.
He alleged that the Transport Minister had unlawfully issued letters of support to PKFZ contractor Kuala Dimensi Sdn Bhd to raise RM4 billion bonds as such letters can only be issued by the Finance Minister with Cabinet approval.
"The first letter of support was issued by the former Transport Minister Tun Dr Ling Liong Sik on May 28, 2003, which was Liong Sik's last day as Transport Minister while the other three were issued by Liong Sik's successor Datuk Seri Chan Kong Choy," said Lim.
He added that action should be taken against Ling, Chan and government officials responsible for issuing the letters of support. -- TMI

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