The Labuan Liberty Port Management (LLPM) has refuted rumours that it was no longer in charge of the sole port on the island.

Its managing director Mohd Alias Abd Rahman disclosed today that LLPM has successfully extended its contract by one year with the Federal Land Commissioners.

"We initially chose to remain silent as it does not want to aggravate matters which could have adverse effect on the island economy as people may be scared to conduct business through the port," he told malaysiakini.

The initial three-year contract expired on Dec 31 last year. Angry port users and Labuan MP Suhaili Abdul Rahman previously lobbied against any renewal of LLPM's contract citing bad services and excessive port fees.

Hidden agenda?

Mohd Alias also took Suhaili to task for allegedly blowing the matter out of proportion.

He added that confusion and conflicting newspaper reports over who runs the port after the expiry of the contract could have been avoided if Suhaili had verified information from the right sources.

Suhaili was one of the most vocal critics of the LLPM. He has brought the matter up in Parliament and had appealed to various authorities to stop the company from obtaining the extension.

"The agreement (with the federal land commissioners) has provisions for extension. The question of LLPM appealing for extension does not arise as the contract was signed almost a month earlier," he said.

Mohd Alias claimed that those who were strongly opposed to LLPM running the port facilities and services had their own agenda which he refused to elaborate.

The LLPM is a subsidiary of the Malay Chambers of Commerce Labuan.