The much-awaited report into the scandal-hit Port Klang Free Zone (PKFZ) transhipment hub was not released today as scheduled due to “technical reasons”.

In a statement, Port Klang Authority (PKA) chairperson Lee Hwa Beng explained that the delay has been caused by accounting firm PricewaterhouseCoopers (PwC) which has restricted access to the report.

“PwC has made it clear that the report is confidential to PKA and must not be reproduced or distributed in whole or in part to any other party in any way without prior consent from (them),” he said.

In response to Lee’s letter dated April 30 seeking consent to make the report public, PwC said it would be given “subject to terms and conditions”.

lee hwa beng “(Yesterday) I met with representatives from PwC and I’ve decided to call an emergency board meeting to seek the members’ approval on the terms and conditions for the release of the report,” Lee noted.

In this regard, Lee denied having leaked information to English-language daily theSun which had quoted sources in its report today.

“I am concerned with the leaks to the press with regard to the PKFZ issue and wish to state that I and my office have played no part in it,” he said.

“It is my responsibility to ensure that the full reports, together with declassified documents are officially released to the public.”

The transhipment hub which includes office blocks, warehouses and a four-star hotel has been hit by controversy following the skyrocketing development cost, which went up from less than RM2 billion to RM4.6 billion.

On April 29, Transport Minister Ong Tee Keat had instructed PKA to release the full report to the public within seven days.

TI: Blatant abuses revealed

In a separate statement, Transparency International president Paul Low said the disclosure by theSun today reveals ‘blatant abuses’ in stewardship of public assets and shady deals reflected by the lack of transparency.

port klang free zone pkfz audit “(Also), there is a conflict of interest of the parties involved, involvement of politicians, the inflated prices of transactions and questionable transactions and perhaps even corruption,” said Low.

The newspaper had earlier published the unofficial PKFZ report, quoting sources on the findings of PwC.

These were that:

  • No proper studies were undertaken before embarking on the project.

  • Major decisions on the project were made without prior approval of the PKA board.

  • The PKA chairperson and general manager entered into agreements without seeking the advice of the relevant government authorities.

  • There was a failure to exercise adequate governance and implement checks and balances in the implementation of the project.

“All of these indicate a malaise of mixing politics with the proper administration of government assets,” said Low.

“It is therefore for (Prime Minister) Najib Abdul Razak’s administration to review the way transactions are conducted and procurement is made in all government agencies, so that similar leakages and abuses can be prevented.”

Dr M: Morally wrong

In an immediate reaction, Dr Mahathir Mohamad said he had heard “there were a lot of problems” during his tenure as prime minister in relation to the PKFZ controversy.

However, no one had reported any wrongdoing to him.

mahathir mohamad 01 “So I don’t know, I am not aware (of it). What I know is that there have been instances that are not criminal (offences) but (are) morally wrong,” he said this morning.

“(For example) Where we hear a state government wants to build a road, they allocate the land to some members of the executive and we have to buy the land from these people.

“This has happened and is something that is morally wrong. People don’t want to make a proper report, they just tell me what happened.”