Published April 30, 2009

Report soon on fiascos at Port Klang Free Zone

Transport official has permission to declassify govt documents

By S JAYASANKARAN
IN KUALA LUMPUR

	Email this article
	Print article
	Feedback

TRANSPORT Minister Ong Tee Kiat pledged yesterday to make public an investigative report prepared by an international accounting firm on the scandal-ridden Port Klang Free Zone (PKFZ) as early as next week.

In 2007, BT first reported that the PKFZ project would require a government bailout as its development costs had soared well over its budget - to RM4.6 billion (S$1.9 billion) from less than RM2.5 billion amid several questionable decisions. It suffered a further blow when Jebel Ali Free Zone International, the Dubai-based company contracted to manage the project, walked out in 2007.

The scandal became so widely reported that it grew to represent a metaphor for all the excess and hubris of the Barisan Nasional government and played some part in its dismal electoral showing last year. More immediately, its ramifications include the fact that former transport minister Chan Kong Choy was not picked as a Barisan Nasional candidate for last March's general election and, thus, lost his job.

His successor, Mr Ong, had promised to get the whole project scrutinised by international accounting firm PriceWaterhouseCoopers (PwC) and the report subsequently made public.

It never happened, for various reasons including the need to declassify several government documents related to the project. Things came to a head over the weekend, however, after business weekly The Edge published a report alleging that the total costs at PKFZ had ballooned to RM8 billion.

An indignant Mr Ong denied it. Government officials said that he then went to the Cabinet meeting yesterday where he asked, and received, permission to declassify the documents and make public the report.

'I am made to understand that the PwC report is ready and in keeping with my promise earlier, it should be made public in its entirety,' Mr Ong said yesterday via his blog. 'I have pledged to maintain transparency on this issue and I intend to keep to my word.'

Mr Ong is also contemplating whether he should submit the findings to the Malaysian Anti-Corruption Commission and the Public Accounts Committee.

Meanwhile, Lee Hwa Beng, the chairman of the development, confirmed the news to the media yesterday. 'I have received strict orders from Ong to push for nothing less than a full accounting of PKFZ for the public,' said Mr Lee. 'My mission is clear. I will facilitate the process and ensure the matter is properly resolved.' Mr Lee is also new to the job, having been made chairman after Mr Ong took over as transport minister.