This is the question I posed in Parliament today — “Why is the government-on-the-run on the RM4.6 billion Port Klang Free Zone (PKFZ) scandal?”

During the 2008 Budget committee stage debate on the Finance Ministry, I started my speech protesting against government ministers kicking the issue of the RM4.6 billion PKFZ scandal from one Ministry to another, evading accountability by refusing to give a direct answer to many pertinent questions which I had posed — with the ball being kicked among the Prime Minister’s Department, the Ministry of Finance and the Ministry of Transport with no one wanting to give a proper answer.

I simplified the questions on the PKFZ scandal which cry out for answer, 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 mid-year to give 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 Transport Minister, both Liong Sik and Kong Choy, as well as the government officials responsible for the unlawful issue of the four “Letters of Support”. Kong Choy had said that he did not know that he had no power as Transport Minister to issue such Letters of Support, Was this an acceptable explanation for getting the government embroiled in the RM4.6 billion PKFZ scandal?

When hard-pressed, the Parliamentary Secretary to the Finance Ministry, Datuk Seri Dr. Hilmi Yahya asked that he be allowed to answer by way of written reply. When asked when the written would be given, he declined to give any firm date on the ground that a proper study had to be done. When I persisted in asking whether an answer could be forthcoming in a week’s time, as this was not a new issue and had been raised for over two months, Hilmi said he would try.

I gave notice that I would be “chasing” him for the reply and would not relent in my pursuit for a satisfactory answer and accountability for the RM4.6 billion PKFZ bailout scandal.