Media statement by Tony Pua Kiam Wee in Kuala Lumpur on Monday, 16^th April 2012:

Datuk Seri Kong Cho Ha is doing everything in his means to cover up for all guilty parties in PKFZ scandal

Today's headlines on The Sun revealed that Port Klang Authority (PKA) has officially written to the Bar Council less than 2 weeks ago to withdraw the complaint against Rashid Asari & Co in a conflict of interest case when preparing the sale and purchase agreements on behalf of PKA for the PKFZ project.

The breach of professional ethics was first revealed by the special position audit carried out by PriceWaterhouse Coopers, commissioned by the then Transport Minister, Datuk Seri Ong Tee Keat. The Public Accounts Committee which took some 6 months to complete the follow up investigations endorsed the findings and made recommendations for those found in breach to be appropriately prosecuted.

Datuk Lee Hwa Beng who was the then PKA chairman had duly carried out his duties to file the necessary complaints against Rashid Asari & Co with the Bar Council.

However under the new Minister, Datuk Seri Kong Cho Ha and new PKA chairman, Datuk Teh Kim Poh, they have conspired to reverse the decision as well as many other decisions which were taken previously by PKA.

In addition to the above, PKA has also decided to withdraw all civil litigation against Kuala Dimensi Sdn Bhd (KDSB)for failing to carry out as much as RM1.6 billion works - including double billings, ficticious billings for works never carried out and excessive charges to PKA. For example, KDSB was accused of making claims amounting to RM55.8 million and RM83 million for 33kv and civil infrastructure works which have yet to commence. These charges were similarly brought against PKFZ by Lee and Ong.

However at KDSB's behest, with obvious motives to sweep the entire BN scandal under the carpet, PKA has agreed to proceed to the arbitration instead despite the obvious criminality of the alleged offences. The CEO and shareholder of KDSB was Datuk Seri Tiong King Sing, who is also the Member of Parliament for Bintulu and BN Backbenchers Club.

Datuk Seri Kong has also directed that all payments which are due to KDSB be paid to the latter's bondholders despite the decision to withold payment by the previous PKA Board. The decision to withold was because of the earlier mentioned legal dispute.

By proceeding to pay KDSB, PKA is basically jeopardising its own interest by making such payments before the Court has decided as to whether such payments are due. The payment amounts to nearly RM700 million annually and has since been paid promptly by the current PKA.

Datuk Seri Kong Cho Ha must answer as to why he has almost single-handedly unravelled all which were in the process of being done to bring to book the guilty parties and to safeguard the interest of Malaysian tax-payers. As a result of all the past abuse and mismanagement, the Government's bill for the project will increase to RM12.5 billion. The sheer lack of urgency to resolve the matter by the Minister demonstrates clearly that powerful political interests are being protected at the expense of the Government.

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