The Public Accounts Committee today visited the controversial Port Klang Free Zone (PKFZ) for a first-hand look at the controversial project and to quiz officials on alleged irregularities which resulted in a government bailout of RM4.6 billion.

The six-member PAC delegation headed by committee chairperson and Johor Bharu MP Shahrir Abdul was there to assess the progress of the PKFZ and to ascertain the commercial viability of the multi-billion project.

After a brief 30-minute tour around the ghost-town-like PKFZ and followed by an hour of meeting between them and the PKFZ officials, Shahrir expressed satisfaction with the explanations given.

Shahrir refused to answer questions from journalists as to whether the briefing by PKFZ officials provided the PAC with all the necessary information to assist in the investigation.

He nevertheless said that a number of his questions had been answered.

"I am satisfied with the explanations given by them. There is progress in the PKFZ plan, but of course we want to see investors come in and invest in this project," said Shahrir.

When asked what he meant by "progress", he said that the PKFZ project was "moving in the right direction".

As an example, Shahrir cited the successful rental of 18 light industry units (warehouses) in the PKFZ. There are a total of 512 such units there.

He also said that 39 percent of the 640-acre vacant land meant for development have been either rented, booked for purchase or optioned for rent. In addition, one of the four commercial units in the zone has also been occupied.

"We support development, but it must be in accordance to law. We don't want to see development wreaking with irregularities like overspending or any other forms of exploitation," he said.

Questioning the AG

However, Shahrir said that there were still some unanswered questions which the PAC would seek answers to.

Among them would be the 20 percent provision for variation order (VO) out of the total RM2.8 billion development budget allocated.

A VO is a provision of a certain amount out of the total development budget allocated for presumable additional development costs.

The VO for the PKFZ budget has been severely attacked by various quarters as being highly dubious.

"The question is - has this 20 percent provision been used?" Shahrir asked.

"What is left for development is the completion of the hotel, exhibition centre and the main road that will connect PKFZ to the main highway, which is due for completion December this year," he added.

He then explained that only after the completion of these three projects can the PAC deduce as to whether irregularities have occurred.

He added that by then the Finance Ministry would have full cost for PKFZ.

The vocal MP also said that the committee wanted a briefing from the attorney-general on the procedures used to obtain the land to develop PKFZ.

PAC has been looking into why the land was purchased at an inflated price instead of utilising the National Land Code (NLC) to acquire the required land.

NLC is a legislation that allowed the government to purchase land for public interest below commercial prices.

PAC launched an investigation into the scandal-laden PKFZ project on Sept 25 and have since questioned various top government officials .

SPECIAL REPORT: Poser over mega 'ghost town'

Watch the four-minute video here