The Public Accounts Committee (PAC) today reported that the cost of per sq ft of land for the Port Klang Free Zone (PKFZ) project was RM41.76 which was 67 percent higher than the RM25 fixed by the Valuation and Property Services Department (JPPH).

The report said that if the land had been acquired in accordance to the Land Acquisition Act 1960, the government would have had to spend only RM442.13 million and saved RM645.87 million.

port klang free zone pkfz audit Besides that, the imposition of a 7.5 percent annual interest rate on delayed payment for the land, before the signing of a sale and purchase agreement by the general manager of Port Klang Authority (PKA) OC Phang, had also resulted in a double charge for the government.

This is because when JPPH had fixed the land price at RM25 per sq ft, it had taken into account an interest payment of 7.5 per cent for the delayed payment for up to 15 years.

PAC also found that approval was not received from the government on the interest rate charge.

"This interest rate charge caused PKA to pay a land purchase cost of RM1.088 billion besides additional interest of RM730 million, bringing the total payment to RM1.818 billion," the report said.

In a related development, PAC has left it to the government to decide on the action to be taken against all those involved, including the big names, in the Port Klang Free Zone (PKFZ) scandal.

Its chairperson Azmi Khalid said this included action to be taken against former transport minister Chan Kong Choy and Phang who both could be liable for criminal breach of trust.

He said the government had on June 27, 2007 decided that all the officials involved in going against the stipulated procedures, causing the government to be dragged into a scandal, would be severely dealt with.

"The decision had been made by the government and what the PAC wants now is for the authorities to act," he told reporters at the parliament lobby today.

'We want immediate action'

This morning, the PAC handed out its report on the PKFZ scandal following the cost of the mega project escalating to RM4.947 billion so far from RM1.957 previously.

In its report, the PAC recommended, among other things, that the Malaysian Anti-Corruption Commission (MACC) and police investigate Chan and Phang's involvement in criminal breach of trust with regard to the issuance of letters of support and letters of undertaking over the project.

NONE Azmi said the PAC did not have the executive power to determine the kind of action to be taken against those guilty of wrongdoings, but only to study and make suggestions over irregularities involving public funds.

"But based on the report, the PAC wants immediate action be taken against the personalities involved in the PKFZ scandal."

He said the PAC was confident Malaysia had enough laws to determine the kind of action to be taken against the guilty parties after thorough investigation by the relevant authorities.

"We don't know whether it's corruption because it needs to be proven. But there is a lot of wrongdoings here, so which category of crime they fall into, we don't know...it is up to the authorities concerned to determine," he added. - Bernama