Transport Minister Chan Kong Choy evaded questions on the scandal-ridden Port Klang Free Zone (PKFZ) today, saying "a statement will be issued soon".

He repeated this several times when pressed to comment on, among other issues, the government's impending bailout of the floundering RM4.6 billion development project.

Prime Minister Abdullah Ahmad Badawi yesterday was reported to have said that he wants Chan to explain the problems faced by the PKFZ management.

Responding, Chan said "we have given him a report", but did not disclose any details as to the content of the report and when it was given to the premier.

"Soon, soon," he insisted when asked when the statement would be issued.

Asked why it was taking the ministry so long to come up with a statement - given that reports on PKFZ's troubles have been circulating for two years now - he said the government had already addressed the matter through parliamentary replies.

Asked to be specific, Chan said he could not remember who had brought up the issue or when the ministry had responded.

"It was a Transport Ministry representative - that, I know. I have asked my aide to check the Hansard (record of parliamentary proceedings)," he said.

PKFZ and transport officials have maintained silence over various allegations relating to the development of the PKFZ and management by its owner, Port Klang Authority (PKA).

There have been reports about massive cost overruns to the tune of more than RM3 billion, claims of conflict of interest and interference by political figures with vested interests in PKFZ, and a dubious land deal .

Matters came to a head this week following media reports indicating PKFZ's problems are compounded by red tape, inaccuracies in the minutes of meetings and attempted tax evasion.

It was these problems that reportedly led to the split between PKFZ and the Dubai-based Jebel Ali Free Zone (Jafza) which had been appointed to manage and promote PKFZ. Jafza pulled out of its 15-year contract last month.

'No real answer'

When contacted, Parliamentary Opposition Leader Lim Kit Siang acknowledged he had raised the issue of the PKFZ land purchase sometime in 2005 but remembers not being satisfied with the answer - or lack of one.

"I know for sure that there was no real answer given to the questions we submitted," said Lim.

Meanwhile, Second Finance Minister Nor Mohd Yakcop was quoted by Business Times today as defending government bailouts.

While refusing to address the issue of PKFZ specifically, Nor said bailouts are akin to throwing a lifeline to troubled companies when this is required in the long-term national interest.

"We don't see the government going out and bailing out failed entrepreneurs. That's not our policy ... has never been our policy," he said.

"But sometimes we put money in to create confidence for the overall economy, and we will do that."

Nor also said such companies are rescued in the interest of their minority shareholders as well as the public in general.

"We didn't bail out the major shareholders, we just created value for the minority shareholders, really. So in that sense, it's not a bailout of the majority shareholders ... it's a 'bail-in' of the general public and the minority," he said.

He also claimed that "every country" bails out certain companies or industries in order to avert crises.

"In a way it's a bailout because they're putting in money ... if they don't do that, the economy could collapse," he added.

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