Minister: PKFZ not a 'white elephant'

The Port Klang Free Zone (PKFZ) project is not a ‘white elephant’, said newly appointed Transport Minister Ong Tee Keat.

After visiting the somewhat deserted RM 4.6 billion multi-purpose site today and going through official documents, Ong believed that everything was in order as far as the implementation of the project is concerned.

"Allegations that PKFZ is a ‘white elephant’ project is not correct. In the name of transparency, I would like to give the public a better picture about the project," he told reporters.

On April 10, Ong promised that he would investigate the matter, which veteran DAP leader Lim Kit Siang described as a "scandal." Yesterday, Lim said five aspects must be probed:

• Whether the cabinet had approved the Port Klang Authority (PKA) and Transport Ministry to buy 1,000 acres of Pulau Indah land for PKFZ at an grossly inflated price

• Whether the cost of PKFZ had ballooned from RM1.1 billion to RM4.6 billion

• Whether the previous transport ministers had dubiously issued four letters of support, acting as government guarantee, to Kuala Dimensi Sdn Bhd to raise RM4 billion bonds

• Whether former transport ministers had created a RM4.6 billion liability for the government in the "bailout" of PKFZ

• Whether previous transport ministers would be probed over the incident

Not a bailout

On the first point, Ong explained that the land price in which the ministry and PKA had paid was justified as the land value itself was determined by the Valuation and Property Services Department in 2002.

He also shrugged off allegations that the land could have been bought at a lower price by invoking the Land Acquisition Act (LAA) and failure to do so, served as an indicator that something was amiss.

"The LAA can only be invoked to purchase land that will serve the common interest of the public and PKFZ does not fit into that category," he said.

As for the support letter, Ong said the matter was no longer under his jurisdiction but that of the Public Accounts Committee though he felt that accusations that the issuance of the support letter was tantamount to abuse of power is "disputable."

"And again I reiterate that there is no such thing as a government bailout. A bailout means you do not have to repay the money given to you to which in this matter, it is not the case," he stressed.

Ong said details on the loan repayment will be properly audited and disclosed at the appropriate time time to avoid any misconceptions of a government bailout.

Newly appointed Port Klang Authority chairperson Lee Hwa Beng also took the opportunity to announce that international accounting firm Price Waterhouse Coopers could be hired to audit the repayment details.

"We have nothing to hide. We will (also) give full cooperation to PAC and the Anti-Corruption Agency and in the name of transparency, expect more information on the project to be released in the near future," he said.

More investors

PKFZ, according to Ong, is well under way to become a success story.

Currently the project, in the running since November 2006, has generated investments worth RM 748 million and is expected to increase to RM5 to RM6 billion before or by 2015.

The project that was modeled after the highly successful Jebel Ali Free Zone in Dubai is also expected to generate some 30,000 employment opportunities by the same year.

"Efforts will be undertaken to smoothen the investment process for foreign interests so that more investments will come in," noted Ong.

Currently PKFZ employs 972 staff and has 47 clients investing in the project. Ong claimed that 46 more clients are expected to invest in PKFZ and generate RM614 million worth of investment soon.

"I’m not talking about ‘likely investors.’ I am talking about real prospects waiting to undergo the formalities and invest in the immediate future," he said.

Repeat allegation outside

Meanwhile in Parliament, Tiong King Sing (BN-Bintulu) - who has been reported to have an interest in the PKFZ project - challenged Lim (DAP-Ipoh Timur) to repeat his allegation that he personally benefitted from PKFZ.

Following Lim's debate on the royal address in which he expanded on the five aspects - including the claim that BN leaders like Tiong should be probed by the government - Tiong challenged Lim to repeat his allegation outside the Parliament House.

"If you are brave, say it outside the Dewan! Say it outside! I challenge you! I challenge you to say it outside!" he thundered.

Speaking of the inflation of the PKFZ price tag, Tiong also told Lim that he should be taught how to calculate costs as his current statements belied the opposite.

"You understand the matters or not? If you don’t know how to calculate it, come here I can show you how to calculate things!" he said.

"If you don’t understand, the Selangor menteri besar is present, he used to be a corporate figure, he can show you to calculate," he added, referring to Abdul Khalid Ibrahim (PKR-Bandar Tun Razak).

Lim, however, said he was not perturbed by the challenge and was not afraid of repeating his assertions.