Media Statement by Tony Pua in Petaling Jaya on Tuesday, 11^th August 2009:

Malaysians are dumbfounded by the extent to which the Port Klang Authority (PKA) has been cheated by Kuala Dimensi and demand legal action be taken against not only the developer but also the directors, management and officers of PKA, as well as the previous Minister of Transport

The DAP commends without reservation the shocking findings by the special taskforce set up to investigate the legal and financial aspects of the Port Klang Free Zone (PKFZ), a subsidiary of Port Klang Authority (PKA).

Malaysians are dumbfounded by the fact that about RM1 billion, or nearly 30% of the RM3.522 billion contract with the master developer for PKFZ, Kuala Dimensi Sdn Bhd is found “to be either over-charged, unsubstantiated or even possibly fraudulent”. What is even more shocking is the fact that the above is only “the tip of the iceberg and many more wrongdoings are expected in the days ahead”!

We completely support the move by the task force to commence legal proceedings to recover the estimated RM1 billion from KDSB which is owned by Sarawak tycoon as well as Barisan Nasional Backbencher Club (BBC) Chairman, Datuk Seri Tiong King Sing.

However, actions must not only be taken against KDSB but also all directors, management and officers involved in PKFZ and PKA for the size and scale of this swindle could only have been pulled off with the complicity of insiders, the “close one eye” syndrome of some, and criminal negligence by others.

For example, how can the successive chairmen of PKFZ including Datuk Dr Ting Chew Peh, Dato' Yap Pian Hon and Dato' Chor Chee Heung have absolutely no knowledge of the hanky-panky that's happening at their own backyard? The swindle includes possible fraudulent claims on electrical infrastructure worth RM55.8mil and 33kv supply works and civil infrastructure works worth RM83mil which were never carried out. No documents and justifications were also provided for more than RM550 million in charges and variation orders.

Above all, the Minister most responsible for the taxpayers being defrauded by these parties is Datuk Seri Chan Kong Choy, former deputy president of Malaysia Chinese Association (MCA). Their sheer negligence and incompetence, if not worse, created the mega RM12.5 billion scandal today, a bill which has to be foot by Malaysian taxpayers for many years to come.

In the light of the above, it raises very serious questions as to why the Minister of Finance, Datuk Seri Najib Abdul Razak ordered that PKA to make the RM660 million payment which was due last month to KDSB despite the advise and position of the special task force to withhold the payments until the investigations are completed. It would appear now that the payment has now compromised the position of PKA for it is now obviously harder to claim back the money which has been paid, than if the money had otherwise not been paid.

The DAP will give full backing to the special task force, PKA and even the current Transport Minister, Datuk Seri Ong Tee Keat to take all necessary actions against the responsible parties above.

We will also call upon Datuk Seri Tiong King Sing to resign as the BN BBC Chairman in order to protect the integrity of the Parliament until the above very serious allegations are dealt with. The BN BBC will have no credibility whatsoever, if led by one embroiled with a controversy involving billions of the rakyat's money.

Finally, we fully expect the transport minister should also table the above report to the parliamentary public accounts committee when it sits again to discuss the PKFZ scandal on Wednesday, 12th August at 11am.

* Tony Pua Kiam Wee, DAP National Publicity Secretary & MP for Petaling Jaya Utara