Andrew Ong | May 29, 09 2:11pm | Malaysiakini

Veteran opposition lawmaker Lim Kit Siang has urged the government to form a commission of inquiry to probe the Port Klang Free Zone (PKFZ) scandal.

“The inquiry must investigate by going beyond the Port Klang Authority (PKA) and probe the Treasury and the previous transport ministers,” Lim said.

The two transport ministers singled out by Lim was Ling Liong Sik (1986 – 2003) and Chan Kong Choy (2003 – 2008).

“The PKA chairperson is only a puppet. The masters were Ling and Chan,” said Lim.

Lim was speaking to reporters after leading a seven-member delegation to the PKA headquarters in Port Klang to study the three-inch thick appendix to the PKFZ audit report for four hours. The appendix was released today.

Lim also lashed out at current Transport Minister Ong Tee Keat for defining a narrow terms-of-reference for the audit by Pricewaterhouse Coopers (PwC) and not granting firm investigative powers.
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By Shannon Teoh | The Malaysian Insider

PORT KLANG, May 29 — The DAP wants the government to cut its losses in Port Klang Free Zone (PKFZ) that faces at least RM8.6 billion in future losses and have asked it to close shop, even if it means declaring the Port Klang Authority (PKA) bankrupt.

After a team led by its parliamentary leader Lim Kit Siang had spent four hours at the PKA headquarters perusing the full report on the RM7.5 billion already spent, they concluded that the government should “bite the bullet and end the project, even if it means declaring PKA bankrupt.”

Party information chief Tony Pua explained that if the statutory body liquidated its assets, it could reduce losses to around RM3 billion from the RM4.6 billion already sunk in by the Treasury.

According to the report by PricewaterhouseCoopers (PwC), PKA is already servicing a government loan but operating losses will see it unable to meet payments by 2012.

It will only turn around in 2042. By then, it would have racked up a cumulative loss of RM3.6 billion.

PKA will need to refinance the loan and lose RM5 billion in interest payments, resulting in a total RM8.6 billion bailout by the government.

“Even this is a best case scenario because the calculations are based on projections that PKA provided,” Pua said.
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