Kuala Dimensi Sdn Bhd, the turnkey contractor of the scandal-hit Port Klang Free Zone (PKFZ) project, told the Public Accounts Committee (PAC) today it was ready to go to court or for

arbitration on the alleged over billing of the multi-billion ringgit project.

NONE PAC chairperson Azmi Khalid ( right ) said Kuala Dimensi, which was represented by deputy chief executive officer Faizal Abdullah, had denied any over billing.

"Kuala Dimensi said they are still waiting for the claim from the Port Klang Authority (PKA) and, after that, they are willing to go to court or for arbitration," he told reporters.

Today was the first time Kuala Dimensi was appearing before the parliamentary committee and Faizal was questioned for two and a half hours at the Parliament building where the hearing was held.

The company's chief executive officer, Tiong King Sing, was present in the morning but left before the hearing began.

PKFZ, an integrated 400ha free commercial and industrial zone adjacent to Port Klang, is embroiled in controversy after it was revealed that the cost of its development had shot up from RM2.5 billion to RM4.6 billion.

PKA, which owns PKFZ, had lodged a police report over billing discrepancies of RM500 million to RM1 billion following a task force finding.

Redeem the bonds

Azmi said Kuala Dimensi also suggested that the government redeem the bonds issued by the company earlier to save on the interest cost.

"I think what Kuala Dimensi meant is that PKA should be looking into ways to try to resolve this, among which is the early redemption so you can save on the interest cost.

Azmi said the real cost the government had to bear in this issue was actually the interest cost and to delay payment would result in the cost going up.

Kuala Dimensi also explained that the amount of RM4.6 billion was in fact the payment or cost borne by the government in their contract and the company only got RM1.6 billion to RM1.7 billion as the rest was for the interest cost.

Azmi said there were weaknesses in the project, especially in its marketing, and this had burdened the cost and led to many other issues.

"We found the weaknesses to be more inclined towards project management ... contract management itself ...," he said, adding that if project was marketed and 90 percent of the area was taken up, the issue would not have come up.

"But because of the marketing, it became a big issue and placed a burden on cost, and various issues came up, as we know today," he said.

Azmi said there were matters that Faizal would not answer because it might be prejudicial to the legal action taken by the company on the PKFZ fiasco.

Apart from the PAC probe, the Malaysian Anti-Corruption Commission (MACC) is also investigating the PKFZ issue. - Bernama