Thursday, December 20, 2007
PKFZ (Click on chart to enlarge)
Malaysiakini reports that Parti Keadilan Rakyat (PKR) de facto leader Anwar Ibrahim yesterday revealed at a press conference that two transport ministers - Chan Kong Choy and his predecessor Ling Liong Sik - had abused their powers by sending letters of support committing the government as guarantor for any financial liabilities of the Port Klang Authority (PKA) for the Port Klang Free Zone (PKFZ) project. He said both Ling and Chan wrote four letters expressing the government’s undertaking to subsidiary companies of the PKFZ’s turnkey contractor, Kuala Dimensi Sdn Bhd (KDSB).
The four subsidiary companies are Special Port Vehicle Bhd., Transshipment Megahub Bhd., Valid Ventures Bhd. and Free Zone Capital Bhd. Developer KDSB had raised funds for the RM4.6 billion PKFZ project through the issuance of bonds purported through such a guarantee.
Anwar, a former finance minister, said that such an undertaking can only come from the Finance Ministry or the cabinet. (Read his blog entry, here.)
I have said this before and I will say it again that the whole thing smacks of corruption and gross abuse of power. A full and independent investigative audit should be carried out to determine the extent of the Government’s liability, pinpoint existing weaknesses in the system of financial and accounting controls, and ascertain whether there is evidence of financial improprieties. Perhaps a Royal Commission of Inquiry should also be set up to get to the truth. To date, I believe the Attorney General has not yet been called by the Public Accounts Committee (PAC) to answer questions pertaining to the dubious land sale which led to the huge cost overruns thus requiring a bail-out for the PKA.
Logged by The Ancient Mariner at 10:20