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.

He pointed out that according to these same forecasts, PKA had expected 20 per cent occupancy in the light industrial areas today, but it currently stands at 14 per cent.

He also disclosed that the only major shipping line using Port Klang as a regional hub, CMA & CJM, was planning to move to Tanjung Pelepas in Johor, saying “expecting it to be 40 per cent in 2011 and then full occupancy in 2014 is extremely optimistic.”

Lim had earlier expressed disappointment with the report as its scope was restricted and while it named a few “middling characters,” he said “the bigger story is the top VIPs” who are “puppet masters.”

“Transport Minister Datuk Seri Ong Tee Keat had promised to tell all but knowing full well the questions posed before the report was commissioned, this is a grave injustice.

“We know it goes higher than this,” he said, adding that a royal commission of inquiry should look into the roles of those in power when the project was being conceptualised in 1999 onwards.

This includes previous transport ministers Tun Dr Ling Liong Sik and Tan Sri Chan Kong Choy as well as then Prime Minister Tun Dr Mahathir Mohamad.

“It is an astronomical rip-off. The can of worms has turned out to be a pit of crocodiles and alligators,” Lim declared.

He added that immediate action should be taken against those named in the report, including three active Barisan Nasional politicians, its backbenchers chief Datuk Seri Tiong King Sing, Deputy Finance Minister Datuk Chor Chee Heung and Sementa assemblyman Datuk Abdul Rahman Palil, who is a former Selangor state executive councillor.

He said that there was “no point” in filing a report at the Malaysian Anti-Corruption Commission (MACC) as PKA chairman Datuk Lee Hwa Beng had done this morning.

“Our Selangor executive councillor Ronnie Liu has already lodged four police and MACC reports. What have they done? In fact, Liu will later lodge a report on MACC at the MACC,” the Ipoh Timur MP added.

The party’s Selangor vice-chairman Charles Santiago called for those involved to be suspended from their positions and have their bank accounts frozen pending investigations.

The Klang MP expressed shock at the amount of wastage and believes there has been political pressure and collusion to keep the 10-year saga quiet.

“It is a colossal failure of our regulators and governance,” he said.

“Given the global and financial crisis that has hit Malaysia’s shores, RM7.5 billion is more than the government’s first stimulus package and RM12.5 billion is over one-fifth of the second package.”