Why Was Suit Related To Port Klang Free Zone Fiasco Dropped?

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KUALA LUMPUR, Nov 24 – Tan Sri Kong Cho Ha must publicly explain why a decision was made to drop one of the suits against Kuala Dimensi Sdn Bhd (KDSB), an Opposition lawmaker said. The suit revolved around the RM720 million in interest payments on the land bought from KDSB to develop the Port Klang Free Zone (PKFZ).

DAP’s Ong Kian Ming said Kong, who is the newly appointed Port Klang Authority (PKA) chairman, must explain the matter as it involved taxpayers’ funds. The Serdang Member of Parliament, in a statement, also said the Finance Ministry must explain why its representative on the board, Datuk Dr Mohd Isa Hussain, was absent from the board meeting last Friday where the decision to drop the suit was made.

“All current and future financial assistance and support given to PKA must ultimately come from the Ministry of Finance and to be absent when such an important decision is made is mind-boggling.” Ong wondered if the recent decision by the PKA board was a precursor to dropping the 2nd suit by PKA against KDSB and the architect, BTA Architect, to recover RM920 million in disputed charges over the development agreement to build PKFZ.

He also questioned if PKA’s suit against former PKA general manager OC Phang for breach of fiduciary duties would also be dropped. “With the acquittal of Tun Dr Ling Liong Sik and the withdrawal of 3 charges against Tan Sri Chan Kong Choy and now the dropping of the 1st suit against KDSB, will we see a situation where all those involved in the PKFZ scandal are let off leaving only the taxpayers to pick up the bill?”

Ling, a former Transport Minister was acquitted for misleading the Cabinet on the land valuation in the PKFZ fiasco. In 2011, Chan, another former Transport Minister was charged with three counts of cheating then Prime Minister Tun Abdullah Badawi by deceiving him into approving KDSB as the turnkey developer for the RM1.9 billion transport hub in the Pulau Indah Free Zone and renovation works at PKFZ site. Chan was acquitted in January this year.

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