More than RM3 billion could have been saved in public funds had the police promptly investigated scandals linked to development of the Port Klang Free Zone (PKFZ), said DAP leader Ronnie Liu who has been monitoring the situation since 2004.

When he lodged his first police report three years ago - asking for a probe on the allegedly inflated purchase price of the land - the development cost was said to be about RM1.5 billion.

In his second police report on June 11 this year, he complained about ballooning project costs which he had estimated at RM3.1 billion.

The latest price tag is a whopping RM4.63 billion, as Liu lodged his third report today at the Klang district police station. This time, he demanded an immediate investigation of information revealed in the media since June.

It has been reported that the cabinet last month has decided to bail out the troubled project.

This include a RM510 million payment this year to Malaysian banks, and the remainder in separate instalments between next year and 2010.

Expressing trepidation that the cost may yet escalate, he said: "The police must act before more of taxpayers' money is wasted."

Liu's action follows on the heels of media reports on the PKFZ that have implicated its senior officials, as well as those in Port Klang Authority (PKA) and the transport and finance ministries.

Also caught in the glare of publicity are the turnkey contractor Kuala Dimensi Sdn Bhd and Umno leaders with links to the company.

Documents have disclosed the cozy relationship between Umno politicians, Kuala Dimensi, PKA and PKFZ.

'Punish officials'

Yesterday, English-language daily The Sun reported that PKFZ has been plagued by red tape, interference by politicians and others with vested interests, inaccuracies in the minutes of meetings and attempted tax evasion.

It was these problems, said the report citing documents and e-mail correspondence, that led to the split between PKFZ and the Dubai-based Jebel Ali Free Zone (Jafza) which had been appointed to manage and promote PKFZ.

However, Jafza pulled out of its 15-year contract last month.

Asked to respond, Prime Minister Abdullah Ahmad Badawi said he has asked Transport Minister Chan Kong Choy to explain why Jafza's concerns had not been entertained.

"I will get Chan to report to me about this," Abdullah was quoted as saying in The Sun today.

The Star meanwhile reported that Abdullah had met Jafza officials "a long time ago, but it was not because of problems" at the port.

When pressed, the premier added: "I won't make a statement until I know more."

Not satisfied with this, veteran DAP leader Lim Kit Siang said Chan must either resign or be removed from the cabinet.

Lim also urged Abdullah to bring to book all public officials "from cabinet level downwards", who were responsible for the scandal.

"... Otherwise, all the talk about public accountability and responsibility under the Abdullah administration are just hot air," he said in a statement issued today.

Lim said Abdullah himself must explain why he is breaking another of his pledges - on no longer bailing out failed mega-projects - since the government is to absorb "in retrospect" the cost of the PKFZ project.

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