RM4.6 billion PKFZ scandal – Chan Kong Choy on-the-run to London to escape further parliamentary scrutiny


I was surprised to read a Bernama report last night that the Transport Minister, Datuk Seri Chan Kong Choy has left for London to attend the 25th International Maritime Organisation (IMO) Assembly and will not be back until later next week.

My immediate reaction is that the Transport Minister is on-the-run from Parliament to escape accountability for the RM4.6 billion Port Klang Free Zone (PKFZ) bailout scandal, as the committee stage debate on the Transport Ministry for the 2008 Budget is scheduled for this Thursday or latest by Monday — when Chan will still be in London.

This is most irresponsible, as Chan knows that the PKFZ scandal will feature prominently in the debate on the Transport Ministry as for the past three months of the parliamentary meeting, no satisfactory answer had been given to the many issues and questions which I had raised repeatedly about the PKFZ scandal.

In fact, last Monday in Parliament during the committee stage debate on the Finance Ministry, I had posed the specific question as to why the government was “on-the-run” on the RM4.6 billion PKFZ scandal.

I had protested that government ministers were 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 had even 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 been 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?

The Minister in the Prime Minister’s Department, Datuk Nazri Aziz had said that questions on the PKFZ scandal should rightly be answered by the Transport Minister.

The Parliamentary Secretary to the Finance Ministry, Datuk Seri Dr. Hilmi Yahya when pressed on the issue last Monday, asked that he be allowed to answer by way of written reply. When asked when the written reply 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.

More than a week had passed and I have not yet received any written reply from Helmi, while Chan has run away to London on the pretext of attending the International Maritime Organisation meeting in London.

Chan should be reminded that while his international commitments are important, they should not be allowed to overshadow his responsibilities to Parliament and Malaysians as Transport Minister.

After all, if Chan is not Transport Minister, he would be nothing in the International Martime Organisation! This is why he must not forget his roots by running away from his primary responsibilities to Parliament and Malaysian taxpayers to evade answer and accountability for the biggest financial scandal in the Abdullah premiership.

If Chan feels that it is very important that he should attend the International Maritime Organisation conference in London which clashes with the parliamentary schedule for the Transport Ministry in the committee stage debate on the 2008 Budget, he could easily ask for the debate on the Transport Ministry to be changed to a later date when he is back from the London Conference.
Chan must stand accused of using the International Martime Organisation conference in London as an excuse to run away from Parliament and escape accountability for the PKFZ scandal in the 2008 Budget committee stage debate on the Transport Ministry, especially as Chan’s role in the RM4.6 billion PKFZ bailout scandal is a major and central one.

I have given notice of a RM10 cut motion for the salary of Chan as Transport Minister over his major role in the RM4.6 billion PKFZ scandal — and it will be the height of Ministerial irresponsibility and parliamentary cowardice for Chan to run away to London when the Transport Ministry comes up for debate on Thursday or Monday.

I have written a strong protest to the Minister in the Prime Minister’s Department, Datuk Nazri Aziz, who is in charge of parliamentary affairs for the Cabinet over the absence of Chan in the debate on the Transport Ministry and to ask that the debate of the Transport Ministry should be stood down until Chan has come back from London to “face the music” over the RM4.6 billion PKFZ bailout scandal.

  1. #1 by k1980 on Tuesday, 20 November 2007 - 1:14 pm

    Chan won’t come back until the RM4.6 billion Port Klang Free Zone (PKFZ) bailout scandal debate in Parliament is over. Should the Interpol in London be informed and send him back to KL in handcuffs?

  2. #2 by ENDANGERED HORNBILL on Tuesday, 20 November 2007 - 1:14 pm

    Like Father like Son.
    Like PM like Minister.

    It’s sold in London, so it’s nice to cover up with blanket…or pull wool over the people’s eyes!

  3. #3 by smeagroo on Tuesday, 20 November 2007 - 1:17 pm

    maybe he needs to tie up some loose ends overseas. MAybe hv money trails to cover. Just a hunch la.

  4. #4 by oknyua on Tuesday, 20 November 2007 - 1:35 pm

    YB Lim,

    Seriously, the whole of MCA is involved. Chan KC came in after the letter of undertaking was given. That letter was needed for RAM, placing the rating to AAA. The issue now, YB, how could a company, set under enactment, issue a letter on behalf of a private limited (RM2) company? (Maye Jeffrey can ellaborate?)

    If Chan explains this, he would be stabbing someone’s back and that might affect some earlier arrangements. As I said YB Lim, it’s not that difficult to check this. All the documents are with an investment bank.

  5. #5 by Bigjoe on Tuesday, 20 November 2007 - 1:38 pm

    I think he learned from Pak Lah, lah…? I noticed the PM likes to be away when things are really bad and confusing, have someone face the music first and then when the chips are clearer, say whatever is the PC thing to do. Don’t have to lead and be up front and get shot for his choices in unclear situation.

    Singapore civil servants perfected the art – called siam (i.e., avoid) in Hokkien.

  6. #6 by k1980 on Tuesday, 20 November 2007 - 1:52 pm

    It’s sad and depressing that Cocky Chan Cong Choy the Corrupt Conman would still be a Minister after the GE, made possible by the fact that he chooses to stand in a Malay majority constituency

  7. #7 by HJ Angus on Tuesday, 20 November 2007 - 2:08 pm

    Look at who’s been entrusted to protecting the nation from corruption!

    http://malaysiawatch3.blogspot.com/2007/11/malaysias-hunt-for-corrupt-projects.html

  8. #8 by Godfather on Tuesday, 20 November 2007 - 2:18 pm

    This scandal is not entirely MCA’s doing. Yes, Ling Liong Sik signed the deal before he retired as Transport Minister, but this was done with the urging of UMNO – led by none-other than its Treasurer, Azim.

    This is classic Ali-Baba cooperation. MCA, being the running dogs which happen to control the Transport Ministry, being asked to sign letters that give de facto guarantees on the debt of the Free Trade Zone while UMNO (with Sarawakian nominees) acquired the land and sold it immediately at the inflated price.

    If there is no regime change, this type of scandals will recur with greater frequency until there is nothing left for the thieves to steal.

  9. #9 by g2geetoo on Tuesday, 20 November 2007 - 3:03 pm

    I propose that Kit stand against this Chan Kong Choy in Selayang in order to teach him a lesson. It’s time to show MCA big guns that they are no longer safe in Malay majority constituency. Now that Tang See Hang is also in shaky grounds.

    1 parliment seat and 1 state seat to DAP!

  10. #10 by izrafeil on Tuesday, 20 November 2007 - 3:07 pm

    RM4.6billion = RM 4,600,000,000 is a lot of money. How much Petronas making again? RM100 billion this financial year ? its a mere 5% of petronas money. But thats not Petronas money, thats our money, you who pay taxes.

  11. #11 by greenacre on Tuesday, 20 November 2007 - 3:11 pm

    Scandals or complaints our Malaysian bureaucracy will respond the way Biro Pengaduan Awam did the last time I wrote to them ‘close shop.’ Well they send me a gift of a ‘mousepad’

  12. #12 by oknyua on Tuesday, 20 November 2007 - 4:09 pm

    Godfather, you are right.

    Now trace the owner of Demensi and Persatuan Nelayan Pulau Indah. You got everything there.

  13. #13 by oknyua on Tuesday, 20 November 2007 - 4:10 pm

    Correcton: Owner – should be “directors”

  14. #14 by grace on Tuesday, 20 November 2007 - 4:22 pm

    Nazri, who are pondans now?
    Look at your ministers! Balls pun sudah kecut! Sudah jadi pondan tulin. The chief pondan is Nazri himself!!!

  15. #15 by sheriff singh on Tuesday, 20 November 2007 - 4:30 pm

    Why is Chan Kong Choy going for the Assembly? Does the Minister himself have to be there? Is he delivering any speeches? Is he a panel member?

    Just what is his role at the Assembly? Is this just another junket, an excuse to get away from the office and have another holiday? How many will be in his delegation? Will they all just register and then disappear for 2 weeks or so? How much will it all cost the taxpayers? What will be the benefit to the nation?

    Will he be visiting Brickendonbury?

  16. #16 by ricky on Tuesday, 20 November 2007 - 4:52 pm

    its an embarassment to all malaysians internationally. we are looked upon as a nation with the highest idiocracy ministers that bungle all the time. with our money! not a single transparent, honest and accountable minister we have.

    at this rate, we will be a country of a completely destroyed economy and all our resources will soon be depleted to the bone. Maybe thats what the government’s vision 2020 is. The prime minister must hold the transport minister accountable if he is serious in weeding out coruption. Mr. Kit Siang, please do not let this issue be blown away with time. thank you for your honest efforts.

  17. #17 by kslaw70 on Tuesday, 20 November 2007 - 4:56 pm

    What is RM 4.6 bil?? Small chicken feed figures. Petronas going to make RM 100 bil this year. They can have 20 cases of this, no a problem for us. Why worry? Bapa ada wang!!!

  18. #18 by chai on Tuesday, 20 November 2007 - 5:07 pm

    he know he will face huge pressure and blame so he better quick quick run out from malaysia la!!!!!!

  19. #19 by sani on Tuesday, 20 November 2007 - 5:19 pm

    Not the 1st time mah! May 13, also cabut…..

  20. #20 by undergrad2 on Tuesday, 20 November 2007 - 6:14 pm

    “I have given notice of a RM10 cut motion for the salary of Chan…” KIT

    Kit, I agree with you on most issues – but on this one I’m sorry I cannot.

    I’d give notice for a RM10.75cents cut for his salary.

  21. #21 by shaolin on Tuesday, 20 November 2007 - 9:36 pm

    We Must target at Petronas Scam of RM100 Billion per
    year rather than RM4.6 Billion scam per case if possible!!

    Surely there are such business scam going on without
    being uncovered and accounted for…!! YB Lim, please
    take note of such ugly stealing from our national bank!!

    You Must Not be surprise when the scam is 10 folds or
    more…!!?? Looks like Uncle Lim must go in to dig out and
    uncover more such news and share it with all of us…!!!
    Huray…!!

  22. #22 by malaysia_mana_boleh on Tuesday, 20 November 2007 - 10:11 pm

    Chan Kong Choy is a disgrace to the Chinese community.

    Hey Kong Choy, you reading this?

    You are a bloody disgrace!!!!!!

    People who still vote for him are either retards or ignorant.

    Play your role and vote this joker out!!!!!!!!

  23. #23 by budak on Tuesday, 20 November 2007 - 10:16 pm

    m’sia semua bolih…
    Uncle Lim, please rally another RCI on BN Ministers…
    if possible check also ex-minister & their mistresses…
    more leaks will be found out…

  24. #24 by smeagroo on Tuesday, 20 November 2007 - 10:33 pm

    CKC is a disgrace to his family. But if his family look up to him then what else can I say!

  25. #25 by waterfrontcoolie on Tuesday, 20 November 2007 - 11:59 pm

    YB, I was told that this MOT minister read only the ‘Dream of the Red Chamber’ for his MU degree. His predecessor could not understand any logistics issue having sat there some 20 years. All he did was to find ‘lobang’ for his own interests. Now we have this guy, who would only dream about RED Chambers,up and down the stairs! Our Gomen Officers spend plenty of time attending international conferences but couldnot figure out any solution to solve the local transport problems. Hence, lately, there is this commotion of lorries with ‘special’ signages which ensure everything is ‘settled’. This isn’t new, it was practised for donkey years! And this useless Ministry keeps on creating more rules and regulations which in reality create more corruption amongst the staff of the enforcement units.
    Anyone desperate enough to engage in the local transport business will swear on this. There is no attempt to reveiw the Transport Act which was inherited from the British in the 50s. Though the quality of trucks has improved, the basic rulings have not changed; in the end, operators continue to over-load like mad, endangering other road users.
    Looking back at the history of this Ministry, it is an effrontery to the Chinese community to have such characters to represent them.

  26. #26 by akarmalaysian on Wednesday, 21 November 2007 - 12:33 am

    hey guys…if this chan kong choy is me…i also cabut la.it doesnt matter who is in BN..be it chinese…malays or indians..[deleted].our pm declares war on corruptions….but look at it properly…all that has been caught are really kacang putih compared to what the real people in the ministers had been suaping.those who makan sikit suap will get tangkap but those who makan suap lagi telan terus one will always get away with it.

  27. #27 by smeagroo on Wednesday, 21 November 2007 - 1:55 am

    of cos la. those who makan suap besar knows of other besar secrets also. If one dies, all die. All die also pawns.

  28. #28 by Counterpoint on Wednesday, 21 November 2007 - 9:08 am

    People like OKT and CKC are really a disgrace to the Malaysian Chinese. Did I hear that eunuch OKT say that the gomen is transparent in setting up the RCI for the Lingam tape? CKC is so tranparent that no one can see him in Parliament.

  29. #29 by justice_fighter on Thursday, 22 November 2007 - 6:58 pm

    I really wonder what has be done to improve the public transport system in the Klang Valley, do you know how many people are suffering everyday!!

    What a shame this useless chicken Chan Kong Choy, what he is doing everyday is simply attending opening ceremony and smile in front of cameras! waste of tax payers’ money to feed his fammily!!!

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