RM4.6 billion PKFZ scandal – Chan Kong Choy still Minister-on-the-run

MCA Deputy President and Transport Minister, Datuk Chan Kong Choy has confirmed that he is a Minister-on-the-run from his sheer inability to answer five simplified questions on the RM4.6 billion Port Klang Free Zone scandal in Parliament yesterday.

When moving a RM10 salary-cut motion for the Transport Minister yesterday, I tried to make things easy for Chan by reducing the public furore over the RM4.6 billion PKFZ scandal into five simplified questions, 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 acceptable explanation for getting the government embroiled in the RM4.6 billion PKFZ scandal?

After each question, I specifically asked Chan to give a “yes or not” answer — to deny if the facts I had mentioned were untrue, and to explain and justify what he and the government had done if what I had said was undisputed and true.

In his reply, Chan completely ignored the five simplified questions on the core issues of the RM4.6 billion PKFZ scandal, as well as other questions which I had posed, including:

  • How Chan could claim that he did not know that as Transport Minister he did not have the powers to issue Letters of Support which were tantamount to government guarantees in the issue of RM4 billion bonds by Kuala Dimensi Sdn. Bhd, as only the Finance Minister had such powers and also after getting prior approval by the Cabinet. How can Chan claim ignorance of this important financial principle when Chan had been Deputy Finance Minister for close to four years from Dec. 1999 to June 2003? Did Chan completely waste his close to four years as Deputy Finance Minister and learnt nothing?
  • Why Chan did not seek the advice of the Legal Adviser of the Ministry of Transport on whether he had the authority and powers to sign the Letters of Support but relied instead on advisers from outside the Ministry?
  • Why for more than three years from May 2003 to December 2006, the Finance Ministry was in the dark and completely unaware that four unauthorized Letters of Support involving RM4 billion bonds had been issued by the Transport Minister as it was only in December 2006 that the Treasury was informed by the lead arranger for the bonds that such Letters of Support had been issued by the Transport Minister and that they constituted government guarantees for the bond issues? Isn’t this shocking evidence of a shambolic government, with the right hand not knowing what the left hand is doing?

Chan spent all his time in his reply yesterday claiming that he was not running away from Parliament by going to London to attend the International Maritime Organisation (IMO) assembly, explaining how important it was for Malaysia.

I have no objections to Chan attending the IMO Assembly in London, but it cannot be used as an excuse for him to run away from his responsibility to be in Parliament to account for the biggest financial scandal in the Abdullah premiership — the RM4.6 billion PKFZ scandal – which comes directly under his portfolio.

It was because I had publicly protested that Chan would not be present in Parliament to face my censure motion against him in the form of the RM10 salary cut motion over the RM4.6 billion PKFZ bailout scandal if the 2008 Budget committee stage debate on his Ministry had come up as originally scheduled last Thursday that the debate on the Transport Ministry was postponed till yesterday.

However, although Chan was shamed into making his personal appearance in Parliament during the RM10 salary cut of his Minister’s pay by postponing the debate until his return from London, he remained a Minister-on-the run in his refusal to give any answer to the five simplified questions or other issues relating to the RM4.6 billion PKFZ scandal.

As I said in Parliament yesterday, when Chan refused to give way for any clarification during his reply, with Chan in Parliament back from London, he is not on-the-run physically, but he continues to be on-the-run intellectually on the PKFZ scandal, continuing his prevarication and evasion of the many pertinent issues concerned.

This is a most shameful parliamentary performance for a Minister who is also No. 2 of MCA.

  1. #1 by dawsheng on Wednesday, 28 November 2007 - 2:11 pm

    “This is a most shameful parliamentary performance for a Minister who is also No. 2 of MCA.”

    I am also ashame that they called themselves Malaysian Chinese Association. MCA has to change name in order not to insult Malaysian Chinese.

  2. #2 by waterfrontcoolie on Wednesday, 28 November 2007 - 2:13 pm

    YB, it is obvious that there could be no explanation to your questions. The answers were to them were too clear, they could never be explained except the ringgit-ringgits were conduited out of the whole ‘project’.
    The only solution to such shameful deed is to find enough candidates to stand against all these shysters and have them out!
    Having siad this, Malaysians as a whole, should not vote based on party-line, they should only vote on honesty and integrity.

  3. #3 by toyolbuster on Wednesday, 28 November 2007 - 2:35 pm

    Looks like Pak Lah is hiding all the rogue ministers and cronies, hounded by the public, in UK. Even the correct correct lawyer was hiding there too. Zam is being locked away in London Zoo to hybernate with his own kind. Chan is participating in the Greyhound race.

  4. #4 by oknyua on Wednesday, 28 November 2007 - 2:37 pm

    Chan KC, let us remember you as that principled man right from your days in University Putra.

  5. #5 by toyolbuster on Wednesday, 28 November 2007 - 2:41 pm

    Its official. MCA is now Malaysian Canine Association. The Malaysians of Chinese origin do not recognise them as their representatives anymore ever since they have joined ranks with the Canine kind.

  6. #6 by justice_fighter on Wednesday, 28 November 2007 - 3:11 pm

    Wrong!! MCA stands for Malaysian Cowards Association, congratulations!!!!

  7. #7 by People on Wednesday, 28 November 2007 - 3:21 pm

    Its unfortunate that MCA has to follow the foot steps of UMNO like brothers in arms. Perhaps its MCA turn (for corruption). It is also an acid test for YB ChanKC to defend himself, MCA & BN but I think he got an E- !! It looks like MCA is very concern about intergrity lately but certaintly not corruption.

  8. #8 by k1980 on Wednesday, 28 November 2007 - 3:38 pm

    CKC will gladly accept any number of RM10/= pay cuts as long as he can be left alone to enjoy his cut of RM4.6 billion….

  9. #9 by taikohtai on Wednesday, 28 November 2007 - 3:39 pm

    Aiiiyaaaahhh, since when can a lap dog stand up on its own to justify any of its actions except to obey its master’s every whim and wish?
    Since when can MCA stay and fight for the rakyat it purports to represent? The stench of corrupted monies always puts it off its track as its real nature is to go after monetary gains at whatever the costs. We all still remember the old habits of top MCA henchmen running off when the going gets tough…….eg Lee Kim Sai to Australia. Unfortunately, such tactics work well, so MCA has adopted them time and again all these years. RUN Ringo RUN!!

  10. #10 by sani on Wednesday, 28 November 2007 - 4:20 pm


    Why did you ask such difficult questions? After all MCA only excel in minor domestic issues like, Wife abuse, families bully by ah long + so on.

    MCA is an establishment with no honor , no shame, no vision, no guts + no after sales service.

    They came, they robbed + they run lah.

  11. #11 by People on Wednesday, 28 November 2007 - 4:30 pm

    MCA is also only concern abt China Dolls running away with their husband and their money !!

  12. #12 by shiver on Wednesday, 28 November 2007 - 5:31 pm

    that RM4.6 billion ringgit is going to bite the rakyat very hard in the next two-three years.
    with the expected downturn of the US economy, the spiralling price of crude oil, the sub-prime mortgage rate concerns and the unwillingness of the China Govt to appreciate the RMB, all these factors will lead to a global recession in the next year, earliest by end 2nd Quarter.
    How it will affect Malaysia? Basically, since we are already down on FDI’s, we are only expecting our export of palm oil and crude oil to supplement our foreign reserves. However, with the increasing prices of flour and all kind of neccesities going up, inflation should be around 15-20% this year and most likely to go up to another 10-15% next year if : A) the govt increases petrol prices by next year and B) toll prices increase by a minimum of 10%.
    In my layman term, I feel that the only way out of this is to appreciate the ringgit to a level that would allow the ordinary salaried-worker in Malaysia to be able, not to go abroad for holidays but to bring down the prices of neccessities to a better level.
    Global recession is looming in the horizon and it is strange this round as the stock markets are not moving south fast enough to prepare the people for a meltdown. Expect the market to go south, by looking at two major indices, the USDJIA and the HSI.
    that RM4.6billion that has been shoddily used to save someone’s else backside will be the death of us all as that money is enough to fight inflation and attacks on our currency for a good time period in order for the rakyat to prepare for the worst.

    think of it. it sounds small when you say RM4.6billion. but when you put it in numericals, it is RM4,600,000,000.00!

    Uncle Kit, please continue to fight for the truth and answers, because if what I wrote do happen by next year, we are indoubtedly screwed.

    I pray someone else can paint a brighter new year. please.

  13. #13 by rosicky on Wednesday, 28 November 2007 - 8:00 pm

    sani Says:
    “Why did you ask such difficult questions? After all MCA only excel in minor domestic issues like, Wife abuse, families bully by ah long + so on.”

    I have to disagree on the Ah Long portion.
    Ever heard of allegations of police, umno and MCA up to the highest level are actually best buddies with the Ah Long.
    How many of the Ah Long and their runners are actually even charge d in court? Let alone convicted.

    The police and Umno supports these loansharks for profit. Furthermore almost all loansharks’ victim are non Malays.
    Not many Ah long I heard of would lend to the Malays(bad repayment credibility.
    Anyway no Ah Long runners would dare to go into Malay Kampung to carry out their harrassments, unless they wish to leave the place alive.

    On the surface MCA may look like supporting the loan shark victims. However it is just a smoke screen. MCA are rumored to be very closely linked to the triads for profit and grass roots support.

    Such alleged collaboration are working well to rob the common lay Chinese and consistent with the NEP objectives.

  14. #14 by rosicky on Wednesday, 28 November 2007 - 8:02 pm

    oops, it should reads :

    ……..their harrassments, unless they do not wish to leave the place alive.

  15. #15 by justice_fighter on Wednesday, 28 November 2007 - 9:16 pm

    testing Mandarin input > 避開關鍵性課題 吉祥稱廣才出逃部長

  16. #16 by justice_fighter on Wednesday, 28 November 2007 - 9:17 pm

    China Press News:

    避開關鍵性課題 吉祥稱廣才出逃部長
    (吉隆坡28日訊)國會反對黨領袖林吉祥形容交通部長拿督斯里陳廣才,是“出逃部長”(Minister of Run)。




  17. #17 by sheriff singh on Wednesday, 28 November 2007 - 9:54 pm

    Mr Lim. You have simplified your questions but unfortunately this simplified version is still too difficult for him. You are still using too many “difficult” words for him to comprehend. Try using words with not more than two syllables.

    If he cannot comprehend your simplified version, what the hell was he doing in London attending the IMO Conference? What was his contribution there anyway?

    And if you keep pressurising him, he might have a recurrence of his mysterious ailment and have to go on medical leave again.

    P/s Just love to see Mr Chan on video “performing” in Parliament.

  18. #18 by Godfather on Wednesday, 28 November 2007 - 10:16 pm

    Thieves are bound by a common code of silence. No matter how hard you press, there will be silence. Just make sure that the rakyat knows the extent to which the taxpayers’ money have been stolen by the band of thieves.

  19. #19 by AhPek on Wednesday, 28 November 2007 - 10:34 pm

    YB KIT,
    No matter how you simplify your questions this goon will remain silent. He even hasn’t got a Hobson’s choice for he has entangled himself in a catch 22 situation.So it’s better to remain silent as Godfather has mentioned that thieves are bound by a common code of silence!

  20. #20 by HJ Angus on Wednesday, 28 November 2007 - 11:48 pm

    Too bad the London authorities turned down the Brickonderry sports center.

    That would have been a perfect getaway for our on-the-run ministers and their kind.

    But is everyone so sure that only one minister was the culprit? Normally such schemes require concerted planning by the partners concerned.

  21. #21 by waterfrontcoolie on Thursday, 29 November 2007 - 12:06 am

    I was told numerous times, he only studied one book for his Chinese Studies, the ‘Dreams of the Red Chamber’; so you can be certain where his mind is. The logistics industry is too complex for him to follow, not to say to understand! That is why he didnot know his limits as a Minister notwithstanding his earlier job in the Finance Ministry. His predecessor spent over 2 decades without learning a thing; so how would he know anything except to sign Billions away!. ALL SAID and DONE, the ball is now with the SLEEPY HEAD. Please wake up!. You have promised HEAVEN that you would cure the country of cronism and corruption and if you do not carry out your promises, HE would certainly let you ‘ooze’ away. You have already shown signs of ‘oozing away’ every now and then.

  22. #22 by sheriff singh on Thursday, 29 November 2007 - 12:21 am

    See: Raising Parliament’s standard


  23. #23 by Godfather on Thursday, 29 November 2007 - 12:48 am

    No, Chan Kong Choy wasn’t the only one involved in this scandal, but as Transport Minister, the letters he signed would mean that he is the first to answer for it.

    As I said in previous blogs, this is a wonderful example of an Ali-Baba partnership in Bolehland – Selangor UMNO in partnership with a Sarawakian businessman to cook up the land scheme, then bring in the UMNO Treasurer to add credibility, then get Ling Liong Sik to buy into the scheme, then ensure that Chan Kong Choy also bought into the scheme, and the rest is history.

    This story has the makings of a classic Harvard Business School case study of a “win-win” situation in business. Everyone wins except the taxpayer who is royally screwed.

  24. #24 by ahpiow on Thursday, 29 November 2007 - 1:31 am

    Saudara LKS,

    I and my wife have been life members of MCA since the 1970’s and have voted for BN in most of the past GEs.

    Only in recent years thru the information I have been able to access via the internet, esp MalaysiaToday, Malaysiakini, LKS blog, etc, have I realised the spin that the govt had spun all these years since I don’t know when, concerning the hidden agendas of marginalising the non-Malays (note : not the bumiputras by definition) in the country’s progress and development. Yes, there were a lot of discriminations that were known – govt employment, govt contracts, scholarships, business opportunities, etc, etc, etc – that obviously were racially-oriented. We the non-Malays survived thru all this. Can the non-Malays tolerate more of this after 50 years?

    The Bersih and Hindraf rallies have answered. The eyes of the world are focussed on Malaysia. The Badawi govt is concerned. The international communities are concerned. The India govt is concerned. I am also confident the China govt is keeping tabs. I am also confident that the Royalty in Malaysia are concerned, albeit remaining silent at present.

    I feel the revolution has begun, it is the beginning, it will take a long while, but change in the governing coalition policy is inevitable. Let us all have confidence that this will happen.

    My family now comprise 7 adults (incl in-laws) who are registered with the SPR. We will all vote in the coming GE for opposition parties, irrespective of whether they are DAP, Keadilan, PAS or others.

    The oppositon parties however must show maturity in their ideals for a true Malaysian nation. Too often in the past, petty and ridiculous issues were raised for publicity sake. Stop all these. Be matured and raise real issues, and THE PEOPLE WILL SUPPORT.

    I hope this message will open the eyes of Malaysians who feel there are injustices to certain sectors of the population. I do not blame people for continuing to vote for BN, as most of these people are un-informed of the true political situation in the country thru their lack of knowledge – relying only on the govt-controlled media.

  25. #25 by kanthanboy on Thursday, 29 November 2007 - 3:11 am

    Cinnamon Says:
    November 27th, 2007 at 13: 53.00
    “…Indians realize that Samy Vellu cannot demand what is right for Indian, because you have thick file on him and his son. If he doesn’t follow what what you say, he and his son will go behind bars because of their criminal activities. Indians are not stupid, we know this situation. Mahathir was extremely happy when leaders of component parties made criminal acts, because from that point onwards, the leader of the component party was his pawn. Indians know this very well…”
    It is the very same reason why CKC can not give a “Yes or No” answer to any of the simplified questions.
    CKC knows that AAB has a thick file on him and his predecessor Tun LLS.

  26. #26 by Jimm on Thursday, 29 November 2007 - 9:00 am

    CKC have no choice but to accept that seat because of his political interest and business rivals.
    TLLS have been very careful to picked CKC after many rounds of disucssion and assurance given by both.
    TLLS have also make sure that his son will be given (at least) half advantage in all MCA activities and business pool sharing.
    Overall, TLLS are always better than DSV and because of Chinese are more creative and better business managers, TLLS outwritten DSV for the TUN title.
    CKC, his choice are limited because of the size of the corruption.

  27. #27 by Godfather on Thursday, 29 November 2007 - 10:26 am

    Nazri wasn’t found guilty of being issued thousands of new taxi permits. Rafidah wasn’t found guilty of issuing hundreds of thousands of APs to her favourite “boys”. MP Mat Said wasn’t found guilty of smuggling tropical hardwood. Councillor Zakaria wasn’t found guilty of abuse of power when he acquired government land at a fraction of the price; in fact, he is doing it again.

    These are towering Malays. There are thousands of towering Malays and they can do no wrong. There are hundreds of Malays who own properties in Perth, London, Sydney, Singapore. How many of these acquired these properties on the back of their own sweat and tears ? Don’t ask. How many Bentleys, and S Class Mercedes or 7 series BMWs are owned by Malays ? Don’t ask.

    There are hundreds of thousands of Indians and other minority races that live from hand to mouth. These are the people who have the unalienable right to ask.

  28. #28 by helpless on Thursday, 29 November 2007 - 4:42 pm

    YB LKS,

    Press for Royal Inquiry as it should never end until CKC and LLS being bring to justice.

    I am expecting CKC will pass the ball as the PKFZ project approved by LLS…

  29. #29 by AhPek on Thursday, 29 November 2007 - 9:02 pm

    The way you are going Realworld will pop in to ask “Where got proof?”.

  30. #30 by justice_fighter on Thursday, 29 November 2007 - 10:54 pm

    Mr.Chang Kong Choy,

    I am writing this in Chinese and hope you can read CLEARLY and think CAREFULLY!!!

    Do you remember the famous MCA slogan: "堂堂正正作人、踏踏实实做事、清清白白作官”!!”

    你有种就别做个缩头龟饭桶高官 ! 若无能提升大马的公共交通系统, 请你快下台, 别让大家天天塞车受苦!! 当交通部长不是要你天天出席开幕典礼讲废话!!

  31. #31 by ahkok1982 on Friday, 30 November 2007 - 7:46 am

    RM10 cut? should be more like RM10,000 cut. Like everything in Malaysia, if it is small, no one gives a damn… say something outrageous like giving him a RM 10k salary cut and maybe you will see some reaction which is stupid enough to draw more attention.

  32. #32 by Godfather on Friday, 30 November 2007 - 9:30 pm

    AhPek, our friend RealWorld has disappeared for a while now. He is still awaiting instructions from UMNO on how to respond. If he asks for evidence, should we go around and take pictures of the Zakaria Palace, the Syed Azman house with helipad, the Rafidah mansion in Section 16, the house in Perth that Kamaluddin said he owns, the service apartment block in London’s Marble Arch that a former Daim crony owns ?

  33. #33 by waterfrontcoolie on Sunday, 2 December 2007 - 4:44 pm

    It would be interesting to compare port development project between our cost that that of our neighbor’s. It was reported that the Pasir Panjang Terminal was projected to cost rm$16 B and with it: they would have the following facilities: 26 berths, 210 acres of land, 24 quay cranes, 44 bridge-cranes, 15 rail-mounted cranes and 12 container gate-ways. With this cost, they projected to handle 18 million TEUs.
    Whereas, we spent rm$4.7 B, just to half-develope 999.5 of open space!!![ this amount is 30% of the P. Panjang project] All the millions that they proposed to earn could not recover this investment. And thousands of job which can only mean importing more Indonesians and Bangladaishs whose contributions only benefitted those politicians who are given the rights to apply for work permits. So, folks in Klang and Port Klang, enjoy your near future living condition!!

  34. #34 by ktteokt on Tuesday, 4 December 2007 - 8:08 am

    Everyone knows what “Chicken Run” is? This is a typical life example!!!

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