Three ruling politicians have been named in the damning Port Klang Free Zone (PKFZ) audit report, two of whom for possible conflict of interest involving the controversial project. The trio are Deputy Finance Minister Chor Chee Heung, Backbenchers Club chairperson and Bintulu parliamentarian Tiong King Sing and Semanta state assemblyperson Abdul Rahman Palil.
Chor (right) had served as chairperson of the Port Klang Authority (PKA) - the managing authority of PKFZ - from April 2007 to March 2008.
The audit report by PricewaterhouseCoopers (PwC) alleged that Chor was potentially in conflict of interest as he was involved in a private company which is a main contractor in the PKFZ project.
According to the report, Chor served as deputy chairperson of Wijaya Baru Global Berhad (WBGB) from April 2004 to July 2007.
WBGB is the parent company of Wijaya Baru Sdn Bhd (WBSB), which in turn is the main contractor to turnkey developer Kuala Dimensi Sdn Bhd.
“Minutes of the (PKA) board did not indicate that Chor either declared his previous involvement in WBGB to the (PKA) board or withdrew himself from deliberations,” said the 45-page report.
Chor is also currently the member of parliament for Alor Star and was deputy home minister until April this year before he was moved to the Finance Ministry.
Efforts by Malaysiakini to contact Chor for his comments were unsuccessful.
Tiong a key owner of turnkey developer
Meanwhile, the report said Abdul Rahman was a PKA board member from 1997 to 2003, and also president of Koperasi Pembangunan Pulau Lumut Bhd (KPPLB) - the original landowners of PKFZ project site.
“At one (PKA) board meeting, Abdul Rahman declared his position as the president of KPPLB and queried the proposal for compulsory acquisition of the land over direct purchase.
“Given that compulsory acquisition would have benefited PKA, the rationale for Abdul Rahman raising the query is unclear,” read the report.
Abdul Rahman is the current Sementa state assemblyperson and was Selangor state executive council member when Barisan Nasional was in power in the state.
Meanwhile, Tiong was named as a 32 percent shareholder of WBGB, which has a 45 percent stake in WBSB - the main contractor to the turnkey developer.
Tiong is also 70 percent shareholder of WBHSB, which is the sole proprietor of Kuala Dimensi, the turnkey developer.
The report however does not make any reference to Tiong as having any conflict of interest.
Quantity surveyor and law firm too
Another party cited for possible conflict of interest is quantity surveyor consortium Perunding BE Sdn Bhd. The company was appointed by PKA to assess the final cost for the project, but it was previously acted for Kuala Dimensi.
The report also named legal firm Rashid Asari & Co for possible conflict of interest.
According to PwC, the firm was appointed PKA’s legal advisory, but it was also acted in the sale of same land by KPPLB to Kuala Dimensi in 1995.
“Good practice would require this earlier involvement to be declared to the PKA board prior to the firm’s appointment as PKA’s legal advisory,” said the report.
SPECIAL REPORT: Poser over mega 'ghost town'
Chor (right) had served as chairperson of the Port Klang Authority (PKA) - the managing authority of PKFZ - from April 2007 to March 2008.
The audit report by PricewaterhouseCoopers (PwC) alleged that Chor was potentially in conflict of interest as he was involved in a private company which is a main contractor in the PKFZ project.
According to the report, Chor served as deputy chairperson of Wijaya Baru Global Berhad (WBGB) from April 2004 to July 2007.
WBGB is the parent company of Wijaya Baru Sdn Bhd (WBSB), which in turn is the main contractor to turnkey developer Kuala Dimensi Sdn Bhd.
“Minutes of the (PKA) board did not indicate that Chor either declared his previous involvement in WBGB to the (PKA) board or withdrew himself from deliberations,” said the 45-page report.
Chor is also currently the member of parliament for Alor Star and was deputy home minister until April this year before he was moved to the Finance Ministry.
Efforts by Malaysiakini to contact Chor for his comments were unsuccessful.
Tiong a key owner of turnkey developer
Meanwhile, the report said Abdul Rahman was a PKA board member from 1997 to 2003, and also president of Koperasi Pembangunan Pulau Lumut Bhd (KPPLB) - the original landowners of PKFZ project site.
“At one (PKA) board meeting, Abdul Rahman declared his position as the president of KPPLB and queried the proposal for compulsory acquisition of the land over direct purchase.
“Given that compulsory acquisition would have benefited PKA, the rationale for Abdul Rahman raising the query is unclear,” read the report.
Abdul Rahman is the current Sementa state assemblyperson and was Selangor state executive council member when Barisan Nasional was in power in the state.
Meanwhile, Tiong was named as a 32 percent shareholder of WBGB, which has a 45 percent stake in WBSB - the main contractor to the turnkey developer.
Tiong is also 70 percent shareholder of WBHSB, which is the sole proprietor of Kuala Dimensi, the turnkey developer.
The report however does not make any reference to Tiong as having any conflict of interest.
Quantity surveyor and law firm too
Another party cited for possible conflict of interest is quantity surveyor consortium Perunding BE Sdn Bhd. The company was appointed by PKA to assess the final cost for the project, but it was previously acted for Kuala Dimensi.
The report also named legal firm Rashid Asari & Co for possible conflict of interest.
According to PwC, the firm was appointed PKA’s legal advisory, but it was also acted in the sale of same land by KPPLB to Kuala Dimensi in 1995.
“Good practice would require this earlier involvement to be declared to the PKA board prior to the firm’s appointment as PKA’s legal advisory,” said the report.
SPECIAL REPORT: Poser over mega 'ghost town'
29/05/09
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