The Port Klang Authority (PKA) has been given the green light to issue a letter to PricewaterhouseCoopers indemnifying the international audit firm from potential law suits over its report on the controversial Port Klang Free Zone (PKFZ).

lee hwa beng pkfz pc 210509 01 PKA chairperson Lee Hwa Beng ( left ) said that the port authority had been advised by legal firm Skrine & Co that an indemnity letter can been issued to PwC.

"We can now issue a letter of indemnity to PwC anytime," said Lee.

But he stressed that PKA had been advised by lawyers that the letter of indemnity would not fully protect the audit firm.

According to Lee, the port authority can still counter sue PwC if the PKFZ audit report contains false information leading to the port authority being sued by third parties linked to the multi-billion ringgit scandal.

The go-ahead from the lawyers had cleared a major hurdle for the port authority to release the much-delayed PKFZ report to the public.

Still waiting for more green light

But the port authority has yet to decide on whether to issue to the indemnity letter and release the PwC report. It appears that it will have to wait for more green light from the cabinet.

But when asked whether this PKA is now waiting for approval from cabinet on the release the report, Lee retorted, “I didn't say that.”

ong tee keat pkfz klang visit 060508 11 "I just said the issue has been brought up for discussion by our nation’s highest authority, which is cabinet."

However, Lee revealed that PKA did not have the "power" to release the controversial report.

When asked on the estimate date to release the report, Lee said he cannot decide it.

When asked who has the power to release the report, Lee said, "I cannot answer this question."

Commenting on the Malaysian Anti-Corruption Commission (MACC) initiated an investigation into the PKFZ scandal, Lee said the PKA willing to give fullest cooperation to MACC.

'Lim's resignation is not related to PKFZ'

Meanwhile, Lee said the PKA board meeting this morning has accepted the resignation of PKA general manager and PKFZ chief executive officer Lim Thean Shiang.

With the sudden resignation, Lee will step in as acting PKFZ non-executive chairman, while David Padman will temporarily take over Lim's general manager post.

According to Lee, the former PKFZ CEO had resigned due to personal reason. He also refused to comment whether Lim’s resignation was linked to the release of the controversial report.

"I cannot answer this question. You need to ask him."

Lim, 37, was appointed by Transport Minister Ong Tee Keat last April on a two-year contract. Many saw his appointment as a move by the minister to clean up PKFZ and revive the ailing PKA.

It is believed that Lim ran into trouble when he gave a “secret briefing” two weeks ago to certain BN backbenchers on the yet-to-be-publicly-released PwC report.

PKFZ began as a RM1.8 billion free-trade zone project in Port Klang in 2002 but has since saw the cost ballooned to RM4.6 billion. Recent reports have estimated losses up to RM12 billion.

The project has been mired with serious conflict-of-interest breaches between top officials of the port authority supervising the project and executives of private companies who are also key politicians in the ruling BN government.

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