Documents acquired by malaysiakini lend credence to claims that the price tag for the land sold to the Port Klang Authority (PKA) for its Port Klang Free Zone (PKFZ) was significantly higher than usual.

Even the Valuation and Property Services Department, according to a copy of a report dated Dec 5, 1998, had valued the land at RM17 per square feet (psf) after reclamation works were done and the provision of an access road and other basic infrastructure.

Unreclaimed land without such infrastructure was priced even lower by the department at RM13.50 psf.

The land was bought by PKA for RM25 psf in 2004.

The evaluation report was signed by the director and deputy-director of the Selangor valuation and property services offices.

While questions have been raised regarding the skyrocketing of PKFZ's development costs - the price tag has currently reached RM4.63 billion - several quarters had early on queried the authorities on the purchase of the land by PKA.

Industry sources have claimed the land, even with reclamation works and the provision of basic infrastructure, should not be priced more than RM17 to RM19 psf.

The seller and developer, Kuala Dimensi Sdn Bhd (KDSB), had in the 1990s bought a portion of the land - originally farm land and mangrove swamps - from Pulau Lumut Development Cooperative Bhd (PLDCB) at RM1.37 psf.

Kuala Dimensi bought from PLDCB the second portion at RM2.98 psf.

It was eventually sold to PKA in 2004 for RM25 psf - the price of the land went up from RM95 million in 1999 to a whopping RM1.1 billion in three years.

Police report lodged

Following announcement of the purchase by PKA, opposition party DAP leader Ronnie Liu ( photo ) lodged a police report and pressed the authorities to investigate the matter.

Other documents, meanwhile, suggest PKA was so eager to honour its commitment to Kuala Dimensi for the land purchase that it had opened its fixed-deposit account prematurely and incurred liabilities.

The PKA payment voucher dated Nov 7, 2002 specified that Kuala Dimensi was to be paid two percent - or RM21.769 million - of the RM1.088 billion land purchase.

The voucher was made out on the same day the offer letter of purchase was issued to Kuala Dimensi.

In response to the directive for "earnest money" payment to Kuala Dimensi, however, the administrative official processing the payment had noted on the voucher that the purchase agreement for the land had yet to be signed.

The official also said none of PKA's board of directors had inked their approval to the transaction.

Taking out from PKA's fixed deposit account will lead to significant losses for PKA in interest accumulated, the note said further. It did not specify the amount of losses to be incurred.

The administrative official in the notes disclaimed, however, any responsibility as the general manager of PKA had expressed readiness to take responsibility for the matter.

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