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Media Statement by Lim Kit Siang in Petaling Jaya on Wednesday, 9th
April 2008:
The five questions about the RM4.6 billion Port Klang Free Zone scandal
what must be answered by Ong Tee Kiat’s report
I welcome the undertaking by the Transport Minister, Datuk Ong Tee
Kiat to give a full report on the RM4.6 billion Port Klang Free Zone (PKFZ)
bailout scandal, as during the last parliamentary meeting, his
predecessor Datuk Chan Kong Choy was “on the run” to evade
accountability and responsibility on the many questions raised on the
issue.
There are at least five questions about the RM4.6 billion PKFZ scandal
which cry out for answer, and which have now become the responsibility
of the new Transport Minister, viz:
1. Was it true that when the Port Klang Authority and the Transport
Ministry insisted on buying the 1,000 acres of Pulau Indah land for PKFZ
at RM25 psf on a “willing buyer, willing seller” basis, in the face of
strong objection by the Attorney-General’s Chambers and the Treasury
which had recommended that the land be acquired at RM10 psf, the Cabinet
had given its approval subject to two conditions: (i) categorical
assurance by the Transport Minister that the PKFZ proposal was feasible
and self-financing and would not require any public funding; and (ii)
that every RM100 million variation in the development costs of PKFZ
would require prior Cabinet approval.
2. In the event, the first condition was breached when the PKFZ project
ballooned from RM1.1 billion to RM4.6 billion requiring government
intervention and bailout while the second condition was breached with
the original PKFZ development costs of RM400 million ballooning to RM2.8
billion without any prior Cabinet approval ever sought for every RM100
million increase in development costs.
3. The Transport Minister had unlawfully issued four Letters of Support
to Kuala Dimensi Sdn. Bhd (KDSB), the PKFZ turnkey contractor — to raise
RM4 billion bonds, which were regarded as government guarantees by the
market. The Transport Minister had no such powers to issue financial
guarantees committing the government, as it could only be issued by the
Finance Minister and only after Cabinet approval. The first Letter of
Support was issued by the former Transport Minister, Tun Dr. Ling Liong
Sik on May 28, 2003, which was Liong Sik’s last day as Transport
Minister while the other three were issued by Kong Choy.
4. Whether it wasn’t true that in recognition that the four unlawful
“Letters of Support” of the Transport Minister had nonetheless given
implicit government guarantee to the market that the Cabinet had in
middle of last year gave retrospective approval for the unlawful and
unauthorized four Letters of Support by the Transport Ministers in the
past four years creating RM4.6 billion liability for the government in
the bailout of PKFZ.
5. Why no action had been taken against the two previous Transport
Ministers, both Liong Sik and Kong Choy, as well as the government
officials responsible for the unlawful issue of the four “Letters of
Support” - getting the government embroiled in the RM4.6 billion PKFZ
scandal?
I will again be demanding for full government accountability and
responsibility for the RM4.6 billion PKFZ bailout scandal.
I have submitted the following question on the PKFZ scandal for the
first meeting of the 12th Parliament, beginning on April 28, 2008:
“To ask the Minister for Transport to fully explain the RM4.6
billion Port Klang Free Zone (PKFZ) bailout scandal, i.e. on its
viability, history of impropriety of land transactions, illegal issue of
Letters of Support, Cabinet bailout, retrospective ratification of past
illegal decisions by previous Transport Ministers.”
*
Lim
Kit Siang, MP for Ipoh Timor & DAP Central Policy and Strategic
Planning Commission Chairman
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