The former and current transport ministers had allegedly abused their powers by sending letters of support committing the government as a guarantor for any financial liabilities of the Port Klang Authority (PKA) for the Port Klang Free Zone (PKFZ) project.

At a press conference in Petaling Jaya, PKR de facto leader Anwar Ibrahim revealed that former minister Dr Ling Liong Sik and his successor Chan Kong Choy wrote four letters expressing the government’s undertaking to subsidiary companies of the PKFZ’s turnkey contractor, Kuala Dimensi Sdn Bhd (Kuala Dimensi).

The four subsidiary companies are Special Port Vehicle Bhd, Transshipment Megahub Bhd, Valid Ventures Bhd and Free Zone Capital Bhd.

Based on the guarantees, the companies raised RM4.6 billion bonds for Kuala Dimensi and received an AAA rating from the Malaysia Rating Corporation Bhd for the PKFZ project.

“It has been established that these letters tantamount to guarantees as they contained words to the effect that ‘we shall at all times in the future ensure that PKA is in the position to meet their liabilities [...],” he said.

Anwar, a former finance minister, said such an undertaking can only come from the Finance Ministry or the cabinet.

“The issuance of the letters of support is in violation of the government’s rules and procedures. Under my watch as finance minister, such infractions were not allowed to happen,” he added.

Anwar said Ling wrote the letter of support on May 28, 2003 - the day he resigned from his transport minister post - while Chan wrote three, dated April 23, 2004, Dec 8, 2005 and May 23, 2006 respectively.

‘Umno stewards’

“There is a strong basis to believe that Ling and Chan are complicit to the improprieties in issuing the ‘letter of support’ which resulted in the government having to bail out the Port Klang Authority but exerting undue advantage to certain parties.

“These parties are also supported by the presence of Umno stewards within their ranks,” he added.

However, Anwar did not show the letters citing Official Secrets Act as a reason but vouched for its contents.

Kuala Dimensi is the company that bought the 1,000-acre land on Pulau Indah for about RM95 million from the island's fishermen’s cooperative, Pulau Lumut Development Cooperative Bhd (PLDCB) and sold it to the PKA for RM1.088 billion.

Soon after, Kuala Dimensi was appointed by PKA to develop the land into the PKFZ - touted to be the Southeast Asian version of the highly-successful Jebel Ali Free Zone in Dubai.

However, the project’s cost ballooned from the forecasted RM2.3 billion - when the initial land and development agreements between PKA and Kuala Dimensi were inked in 2003-2004 - to the current RM4.68 billion.

Resulting from this, the government announced that it will extend a ‘soft loan’ amounting to RM4.68 billion to the PKA.

Anwar named several top politicians behind the scandal and said it is necessary to hold them accountable for the phenomenal loss.

This include Bintulu parliamentarian Tiong King Sing (KDSB director), Umno treasurer Abdul Azim Mohd Zabidi (KDSB chairman), MCA leader Chor Chee Heung (PKA chairperson) and Kapar Umno permanent chairman Onn Ismail (former chairperson of PLDCB).

“In normal government investigations, if there is a need to act finally, they would act (only) against junior officers apportioning the blame to them.

“I am saying now - to quote Ling - the fish rots from the head,” he added

The phrase was coined by Ling, who is also MCA honorary life president, when commenting on internal party conflicts in 2000.

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