Published June 11, 2009

Official picked to revive Port Klang FTZ

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(KUALA LUMPUR) Malaysia has appointed the country's head of a global anti-graft body to oversee a scandal-plagued free-trade zone, as the government moves to tackle allegations of corruption that have eroded its popularity.

Paul Low, president of the Malaysian chapter of Transparency International, will lead a committee to oversee the revival of the Port Klang Free Trade Zone (PKFZ), Transport Minister Ong Tee Keat said yesterday. 'I understand that the whole nation is watching the development as it unfolds and we are mindful that we must act in the best interest of the people,' said Mr Ong.

He said the committee, along with two other panels that have been set up to look into the project, would be given two months to report back to his ministry with recommendations on 'how to rectify the wrongs and pursue appropriate legal remedies'.

Prime Minister Najib Razak's government has been hit by accusations of cronyism involving the project at Malaysia's main port near the capital, Kuala Lumpur.

The uproar comes as the ruling coalition is seeking to boost support after a disastrous showing in national and state elections in 2008.

The PKFZ, which covers 405 hectares, was conceived as a RM1.8 billion (S$746 million) joint venture between the Port Klang Authority (PKA) and Dubai's Jebel Ali Free Trade Zone.

Jebel Ali later withdrew from the project after disagreements with the promoter.

A report from auditors PricewaterhouseCoopers released on May 28 showed the project's cost may ultimately spiral to as much as RM12.45 billion, six times the original estimate. -- Reuters