KUALA LUMPUR: An opposition leader wants Transport Minister Kong Chong Ha to be held accountable for instructing the Port Klang Authority (PKA) to repay bondholders. DAP MP Tony Pua said taxpayers may have to bear the RM1.4 billion in possible losses should PKA fail to reclaim the RM372 million paid to bondholders under Kong's instruction.
The repayment was made on July 30 despite the ongoing legal proceedings against turnkey contractor Kuala Dimensi Sdn Bhd (KDSB) which was sued for RM1.4 billion for, among others, excessive claims for the Port Klang Free Zone (PKFZ) project.
"In the event where PKA is successful in its RM1.4 billion litigation and claims against KDSB... and PKA is unable to claim the necessary 'refunds' from the latter, it will result in a huge loss of RM1.4 billion to the government and the people, even without including any interest cost," said Pua, the MP for Petaling Jaya Utara.
Pua said PKA, on the advice of its lawyers, had already made known its position that it was against making any payments to the KDSB bondholders pending the disposal of the court case due to the fear that the amount would be irrecoverable from KDSB even if PKA won the case.
Cabinet deceived?
Kong had reportedly said that the ministry would honour the initial agreement which allegedly obliged PKA to fulfil a final payment of RM372 million, the second part of the RM723 million repayment due to bondholders this year.
Of the total, PKA paid RM222.58 million to Freezone Capital Bhd (FZCB) and the remaining RM150 million to the Special Port Vehicle (SPV).
Pua questioned if the decision to repay bondholders, despite opposition from Kong's predecessor, then transport minister Ong Tee Keat, was made by misleading the Cabinet.
"If the transport minister failed to brief the cabinet of the pertinent points with regards to the bond and the ongoing litigation against KDSB by PKA, and should PKA be unable to reclaim the RM1.4 billion fraudulently claimed by KDSB, (Kong) must be similarly charged in court like former transport minister, Dr Ling Liong Sik," he said.
Ling was charged last Friday for allegedly misleading the Cabinet on the land acquisition for the PKFZ project and is the first big name to be hauled to court over what had been described by the opposition as "the mother of all scandals".
Ling posted bail which was set at RM1 million. The case is set for mention in September
FMT
03/08/10
The repayment was made on July 30 despite the ongoing legal proceedings against turnkey contractor Kuala Dimensi Sdn Bhd (KDSB) which was sued for RM1.4 billion for, among others, excessive claims for the Port Klang Free Zone (PKFZ) project.
"In the event where PKA is successful in its RM1.4 billion litigation and claims against KDSB... and PKA is unable to claim the necessary 'refunds' from the latter, it will result in a huge loss of RM1.4 billion to the government and the people, even without including any interest cost," said Pua, the MP for Petaling Jaya Utara.
Pua said PKA, on the advice of its lawyers, had already made known its position that it was against making any payments to the KDSB bondholders pending the disposal of the court case due to the fear that the amount would be irrecoverable from KDSB even if PKA won the case.
Cabinet deceived?
Kong had reportedly said that the ministry would honour the initial agreement which allegedly obliged PKA to fulfil a final payment of RM372 million, the second part of the RM723 million repayment due to bondholders this year.
Of the total, PKA paid RM222.58 million to Freezone Capital Bhd (FZCB) and the remaining RM150 million to the Special Port Vehicle (SPV).
Pua questioned if the decision to repay bondholders, despite opposition from Kong's predecessor, then transport minister Ong Tee Keat, was made by misleading the Cabinet.
"If the transport minister failed to brief the cabinet of the pertinent points with regards to the bond and the ongoing litigation against KDSB by PKA, and should PKA be unable to reclaim the RM1.4 billion fraudulently claimed by KDSB, (Kong) must be similarly charged in court like former transport minister, Dr Ling Liong Sik," he said.
Ling was charged last Friday for allegedly misleading the Cabinet on the land acquisition for the PKFZ project and is the first big name to be hauled to court over what had been described by the opposition as "the mother of all scandals".
Ling posted bail which was set at RM1 million. The case is set for mention in September
FMT
03/08/10
No comments:
Post a Comment