The Never Ending Port Kelang Free Zone (PKFZ) Saga

www.malaysiakini.com

May 20, 2009

PKFZ scandal plunges to new depths

Just when Malaysians thought they were about to see the beginning of the end to the Port Klang Free Zone (PKFZ) imbroglio, the multi-billion ringgit scandal took a few new twists.

First, was that the revelation that losses at the ailing free-trade zone could amount to a whopping RM12 billion. It is reported that the PricewaterhouseCooper (PwC) audit on the PKFZ – which was commissioned by the Port Klang Authority – would “show losses stemming from bonds issued to finance the project could plunge it into insolvency by 2012.”

According to Singapore’s Straits Times, the PwC report “details an array of alleged management irregularities at the free-trade zone development”, including “serious conflict-of-interest breaches between officials of the port authority and executives of private companies with close ties to the ruling BN government”.

Malaysiakini had reported last year how the project, originally tagged at RM1.8 billion in 2002, ballooned to RM4.6 billion. Now, it appears that the losses can be as high as RM12 billion.

Second, was the sudden resignation of the man tasked to clean up and salvage the free-trade zone – Lim Thean Shiang, the Port Klang Authority (PKA) general manager and PKFZ chief executive. It appeared that Thean Shiang’s ‘fatal mistake’ was a “secret briefing” he gave two weeks ago to certain BN backbenchers on the yet-to-be-publicly-released PwC report.

According to veteran opposition leader Lim Kit Siang, the briefing was “most improper and irregular”. “Was the Official Secrets Act breached in the briefing, as the reason which had been given so far for the protracted delays in publication of the PwC audit report on the PKFZ scandal is that certain aspects of the report is protected by the OSA,” asked Kit Siang.

Backbenchers Club Chief a key player in scandal

Interestingly, the Backbenchers’ Club chairperson, Tiong King Sing (SPDP-Bintulu), has a controlling stake in Kuala Dimensi – the company which profited from selling 405ha of land for the free-trade zone at an inflated price to the port authority.

Another politician who is a key player in the PKFZ fiasco was former UMNO treasurer Abdul Azim Zabidi, a director of Kuala Dimensi.

Azim, a former MP, lost his Bukit Gantang seat in Perak to the late Roslan Shaharum from PAS in last year’s general election. He was not picked to recontest the seat in the recent by-election following Roslan’s death, which was eventually won by Perak MB Mohammad Nizar Jamaluddin.

It is not clear whether the two were at the ‘secret’ meeting. Kit Siang has called on Transport Minister Ong Tee Keat – whose ministry is in charge of the PKFZ project – to reveal details of the meeting including those BN parliamentarians who were present.

Thean Shiang’s fate, whose resignation had already been accepted by Ong, will be known tomorrow when the port authority’s board meets.

The opposition leader wants heads to roll, in particular the long list of politicians who were allegedly involved in the scandal (see chart).

“The time has come to end all the procrastination and for the RM12 billion PKFZ can of worms to be fully opened to the glare of Malaysian public and for everyone, regardless of status or position, responsible for the mega financial scandal to be brought to book and prosecuted in the courts.

“Whether from MCA, UMNO or any other BN component party, whether big guns or small fries, retired or current politicians including those in the present Najib (Abdul Razak) administration, let them all pay the price for the RM12 billion PKFZ scandal.”

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