Kit Siang tells MCA to be neutral in PKFZ scandal

KUALA LUMPUR: Lim Kit Siang told political foes MCA to uphold the public’s interest while their ex-president Tun Dr Ling Liong Sik faces trial for his alleged role in the Port Klang Free Zone (PKFZ) scandal.

The DAP advisor said that MCA, as a component of the federal government, must show equal concern for the public.

“MCA leaders, including Housing and Local Government Minister Datuk Seri Chor Chee Heung, lined up to give support to former MCA President and Transport Minister, Tun Dr Ling Liong Sik after he was charged with cheating the Cabinet in the RM12.5 billion Port Klang Free Zone (PKFZ) scandal.

“Without commenting on Ling’s case, Malaysians are entitled to expect that MCA Ministers and leaders should show at least equal concern for Justice for 27 million Malaysians who are victims of the RM12.5 billion PKFZ scandal than Justice for Ling Liong Sik,” he said in a press statement.

On Thursday, Dr Ling was charged with cheating. The charges concern land evaluations under the penal code with the principle charge under section 418 with the alternative charge being 417.

Punishment for offences under section 417 carries a jail term of not more than five years and not more than seven years under section 418.

According to the penal code, section 418 concerns “Cheating with knowledge that wrongful loss may be thereby caused to a person whose interest the offender is bound to protect” while section 417 concerns “Punishment for cheating.”

Lim questioned if MCA is sincere in tackling the PKFZ problem.

“What have the MCA national leadership, and in particular the four MCA Ministers, done to ensure justice for the 27 million Malaysians in connection with the PKFZ scandal?

“Did the MCA national leadership and the MCA Transport Minister Datuk Seri Kong Cho Ha prioritise the interests of the 27 million Malaysians when he overrode the decision of the Port Klang Authority (PKA) and directed it to pay its PKFZ bond obligation of RM222.58 million to Kuala Dimensi Sdn Bhd (KDSB) special purpose vehicle Free Zone Capital Bhd (FZCB)?” he said.

He also asked if the party agrees with Datuk Seri Ong Tee Keat statement which contradicted with his successor, Datuk Seri Kong Cho Ha.

“Does the MCA national leadership and the MCA Cabinet Ministerial bloc agree with former MCA President and Transport Minister Datuk Seri Ong Tee Keat that it is ‘a foolhardy move’ to ‘pay according to what has been decided much earlier, according to the schedule that was set a long time ago’, ignoring latest developments, new facts and ‘missing link’ in the PriceWaterhouseCoopers Advisory Services report,” he said.

Lim stressed that MCA must prove that Ong’s allegations are wrong by suspending of PKA payments to KDSB special purpose vehicles and ensure that the “big fishes” are hauled for corruption.

“The present MCA national leadership and the MCA Ministerial bloc must prove the former MCA President and Transport Minister wrong in his serious charge that they are party to sweeping the dirt under the carpet,” he said.

The government recently ordered the Port Klang Authority (PKA) to honour its final bond obligation of RM222.58 million to Freezone Capital Bhd (FZCB), despite the board’s ongoing suit against turnkey contractor Kuala Dimensi Sdn Bhd (KDSB).

The transport ministry said PKA would have to make payment to special purpose vehicles as set out in the payment schedule.

In making the decision, the Transport Ministry said, the government had taken all relevant factors including the government’s commitment to bondholders, and PKA’s obligations under the agreements signed.

PKA had also given an undertaking to make payment to the special purpose vehicles, it said in a statement today.

Transport Minister Datuk Seri Kong Cho Ha had said that the ministry would stick to the original schedule set before, which stipulates that the board had an obligation to fulfil a final payment of RM372 million, a second part of the RM723 million repayment due to bondholders this year.

Of the total, PKA is obliged to pay RM222.58 million to FZCB and the remaining RM150 million to Special Port Vehicle (SPVB) by July 31 this year.

It was reported that the PKA board had decided to hold back on its final payment to FZCB, one of the four special-purpose vehicles (SPVs) that was established by KDSB, the turnkey contractor for the troubled Port Klang Free Zone (PKFZ) project.

KDSB is now facing a suit of RM1.4 billion by the PKA for, among other things, allegations that it had made bloated claims for work done on the project.

Lim Kit siang
01/08/10

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