Press Statement by Lim Guan Eng in Petaling Jaya on Monday, 29^th June 2009: 

Port Klang Authority to pay RM 660 million to Kuala Dimensi Sdn Bhd (KDSB) by July - If Ong Tee Keat is committed to cleaning up the RM 12.5 billion Port Klang Free Trade Zone(PKFTZ) scandal, he must stop all payments to KDSB or any other parties until the culprits responsible are arrested and charged in court 

Transport Minister Datuk Seri Ong Tee Keat must clarify to the public the veracity of a report in the Edge Financial Daily on 26 Jun 2009 that the PKA is to pay a total sum this year of RM 660 million to KDSB by July 2009. If Ong is committed to cleaning up the RM 12.5 billion PKFTZ scandal, then he must immediately instruct all payments to KDSB or any other parties be stopped until the culprits responsible are arrested and charged in court. KDSB is the turnkey contractor for PKFTZ.

The Edge report had said that PKA will draw down RM 360 million from the government’s soft loan of RM 4.6 billion to pay KDSB on June 30 for the land and construction of scandal-hit PKFTZ project. Another RM 300 million will be drawn down in July as the next scheduled payment to KDSB. KDSB had received a payment of RM 510 million in 2007 and RM 660 million in 2008 from PKA and the government. With another RM 660 million this year, this makes a total of RM 1,830 million to KDSB in three years for a project that is clearly over-priced and without the prospect of ever earning enough to cover the costs incurred.

According to the PricewaterhouseCoopers(PwC) report, the PKFTZ had ballooned from an initial cost of RM 1.96 billion to RM 7.45 billion, including interest cost. PwC added that as it is highly unlikely that repayments to the loans can be made on time, further financial borrowings necessary would result in the cost of PKFTZ exploding to RM 12.5 billion.

The RM 12.5 billion huge losses are shocking. What is more shocking is that not one single person has been arrested and charged in court for this scandal even though the PwC report had clearly outlined cases of conflict of interest and those responsible that have acted against public interest involving a MCA Deputy Minister.

Is protecting MCA interests for Ong more important than protecting public interests? This is a sad day for Malaysia when not a single person can be arrested and charged in court for causing such a monumental loss to Malaysia whilst a person stealing milk powder can be sentenced to prison. RM 12.5 billion is a huge sum that if divided amongst27 million Malaysian will result in each child and adult losing nearly RM 500 each.

Why is Ong not pressing for action against the culprits? Or refusing to declare whether the RM 12.5 billion to be spent on PKFTZ is reasonable, cheap or expensive? Why is Ong also not instructing all payments to KDSB be stopped till action is taken?

By failing to do so, Ong and the BN government is continuing to throw in billions of ringgit for what is essentially a failed project. DAP fears that finally, no one will be punished for a scandalous crime that has enriched some at the expense of 27 million ordinary Malaysians forced to bear the price of BN and Ong Tee Keat’s failure to act.

* Lim Guan Eng, DAP Secretary-General & Penang Chief Minister; Member of Parliament for Bagan