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Friday, June 12, 2009

Create a conducive atmosphere for the task force on PKFZ

DAP National Deputy Chairman and MP for Kepong Dr Tan Seng Giaw calls on the Federal Government to create a conducive atmosdphere to enable the Task Force and the two committees on the Port of Klang Fee Trade Zone (PKFZ) project. The force is tasked for two months to produce a report on the complicated PKFZ major scandal.

Dr Tan comments on the Transport Minister Datuk Seri Ong Tee Keat's appointment of luminaries to the Task Force, the Ad-hoc CorporateGovernance Committee and the Executive Committee.

The media have given big coverage of the Task Force headed by Vinayak Pradhan, the Ad-hoc Corporate Committee by Datuk Paul Low Seng Kuan and the Executive Committee by Datuk Lee Hwa Beng, the Port Klang Authority (PKA) Chairman. We hope that these committees will work well, leaving no stone unturned. The PricewaterhouseCoopers audit report on PKFZ has limited terms of reference.

The major PKFZ scandal involves RM7.5 billion, possibly RM12.5 billion by 2012. The Central Government Cabinet, the Treasury, the Transport Ministry and PKA had many famous people with credentials. Yet, the major scandal still happens. For example, from 2001 to 2007, there were 28 members of the board of PKA including Datuk Dr Ting Chew Peh, Datuk Yap Pian Hon and Datuk Chor Chee Heung. But, they did not follow procedures when the initial outlay skyrocketed from RM1.9 billion to RM 4.5 billion and RM 7.5 billion.

The Cabinet decided that PKFZ must be self-financing. By May 2004, PKA knew that it could not comply with the Cabinet decision. Yet, PKA hadf urther signing of 8 agreements involving hundreds of millions ofringgits.

Despite the publicity on the Task Force, the two committees and the luminaries, some have doubts about whether these people can fulfil their functions. Hence, the Federal Government must create a conducive atmosphere for them to work smoothly.

Dr Tan Seng Giaw

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