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By Time Leonard, The Sun The Transport Ministry welcomes any investigation by the Anti-Corruption Agency or the Public Accounts Committee into any possible “irregularities” behind the controversial Port Klang Free Zone (PKFZ) project.
Its minister Datuk Seri Ong Tee Keat said the ministry will fully co-operate with investigators if the need arose. “We are committed to transparency ... we have nothing to hide,” he said after revealing the first part of a probe by the ministry on PKFZ, which was “rescued” via RM4.6 billion in government loans. The report comprised a chronology of events and statistics on PKFZ’s performance. The much-awaited independent financial audit by PricewaterhouseCoopers (PWC) is expected to be completed in a few weeks. “The ACA and PAC are at full liberty to pursue this matter (possible irregularities) with the fullest cooperation from the Transport Ministry and Port Klang Authority (PKA),” Ong said when asked to comment on the controversial land transaction between the ministry and Kuala Dimensi Sdn Bhd to develop PKFZ. The land deal was concluded at RM25 per square foot while the original cost was pegged at RM10 psf. He said some questions on the land transaction could be answered by only his predecessors Tun Dr Ling Liong Sik and Tan Sri Chan Kong Choy. Ong said the ministry was concerned over how the land deal was transacted because it was of national interest. “If you ask me personally, I might not have done it,” he said, when pressed to comment further.
“But I don’t want to jump the gun until the financial probe by PWC is completed.” Describing the controversies surrounding the project as a “headache”, Ong also said the interest of 4% on the loan was a burden. “When people talk about the RM4.6 billion, they think all the money has been spent, but that’s not the case. PKFZ has repaid some RM1.378 billion as of this year,” he revealed. Ong showed statistics of PKFZ’s impressive rate of attracting investments and occupants over the past eight months. Total number of investment inflow rose by 30% or RM200 million, occupancy rates rose 41% for its open land, 183% for light industrial units and 1,274% for leased office block, the report showed. Ong said PKFZ was on track towards achieving 80% total occupancy within the next five years. “PKFZ employs 1,659 Malaysians and foreigners, a significant jump from 972 in March,” he said. Total cargo movement at PKFZ jumped 495% (containers) and 307% (non-containers) since last year. Ong said PKFZ’s performance increased significantly following the exit of Jebel Ali Free Zone, a Dubai-based and leading world free zone operator which was managing the concession for PKFZ.
“I think PKFZ has done considerably well after the change of guards,” he said. PKFZ executive chairman Lim Thean Shang, who was present, said from his reading of the four controversial letters, which many regarded as government guarantees for the project, “the letters confirm the contract but they are not letters of guarantee”. “So the second question of whether the minister had authority to issue guarantee letters does not arise here,” he said. The letters of support, one signed by Ling and three by Chan, issued to Kuala Dimensi – PKFZ’s turnkey contractor – to raise RM4 billion bonds were regarded as government guarantees by the market and questions were raised as to whether the minister had the authority to issue financial guarantees.
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