By Giam Say Khoon
KUALA LUMPUR (July 15, 2009) : Former Transport Minister Tun Dr Ling Liong Sik today told Parliament's Public Accounts Committee that the first and only letter of support he issued for the controversial Port Klang Free Zone project was not a government guarantee.
Ling's letter of support was probably the most important document to come under scrutiny during a three-hour inquiry by the PAC on the RM4.9 billion project, which reportedly benefited from three other similar letters issued by Ling's successor Tan Sri Chan Kong Choy who is scheduled to be summoned next week.
Ling, who was the longest serving MCA president, is the first former minister to appear before the PAC on the PKFZ issue, on which an independent audit report by PricewaterhouseCoopers (PwC) was made public recently.
After the PAC hearing, its chairman Datuk Seri Azmi Khalid told reporters that Ling told them he signed the letter of support issued on May 23, 2003, under the suggestion of the ministry's secretary-general and advice from legal advisors.
"It is not a letter of guarantee and it has no financial implication on the government," he said.
Ling had waved to reporters when he arrived for the inquiry, but evaded the press when he left.
The PKFZ project, one the Port Klang Authority could ill afford, is of public interest because it received a soft loan of RM4.6 billion from the government. The project was done in one go, instead of in phases, and there is not enough business generated there currently for the project to pay for itself.
It has been reported that Chan issued the three lettters of support on April 23, 2004, Dec 8, 2005 and May 23, 2006. He had also denied that they were government guarantees, although detractors have argued that the wording of the letters seem to suggest so.
Azmi said Ling was only involved in the initial part of the project and he was not involved in the implementation stage.
He said Ling was cooperative and gave his part of the story on the project and how the 405-hectare site (in Pulau Indah) was identified.
"We had posed a few questions regarding the decisions he made. He answered all except for some that he had forgotten as the incident happened years ago.
"The interview with him is part of our effort to summon all related parties, including all former ministers as well as current Transport Minister Datuk Seri Ong Tee Keat, who will also appear before the committee tomorrow (Thursday)," he said.
Azmi also said among other issues raised by the committee included the purchase of the PKFZ land and why the bonds for the project were not issued on the government's guarantee as well as why the project was not developed in phases.
"The PKFZ had been developed at one-go with a large amount of expenditure. It has been completed but only 14% of the project can be rented out and because of that, viability of the project is affected.
"We want to know how the decision was made and by who. We also want to know why the Finance Ministry's officers had not brought the issue to their superior and let it happened," he said, adding that the committee will compile all the interviews into a report to Parliament in October.
As for Chan's turn to be interviewed, Azmi said Chan is to be summoned next week.
Asked what would happen if the parties invited to the hearing refused to abide, Azmi said the PAC invitation is an invitation by Parliament, and refusal to do so is deemed a contempt of Parliament.
Showing posts with label PKFZ. Show all posts
Showing posts with label PKFZ. Show all posts
Wednesday, July 15, 2009
Friday, June 19, 2009
Ong clarifies variation order - Star
June 19, 2009
PETALING JAYA: Transport Minister Datuk Seri Ong Tee Keat said that the RM1.2bil variation order for the Port Klang Free Zone project was approved by the Port Klang Authority board last year.
Ong said he received numerous queries on whether he had applied to the former prime minister to approve the variation order and that copies of official letters were also circulated on the Internet.
“The board had written to me, asking me to write to the then prime minister who was also the finance minister to apply for the additional funding,” he clarified in his blog posted yesterday.
“The authority was also at risk of defaulting payment as the deadline to meet its financial obligations was approaching,” Ong said, adding that he was merely relaying the decision of the board to the then PM.
He said he had just started his ministerial job less than two months ago at that time, and that the decision was made by the port authority before his tenure.
Ong also pointed out that PricewaterhouseCoopers had not even started its Position Review work.
“As the person who directed port authority to commission an independent report by a reputable international accounting firm, and asked for the findings to be made public, I have nothing to hide,” he said.
“If I did, I would not have commissioned the Position Review. From day one, I have requested nothing less than an impeccable level of transparency and accountability in tackling this issue and I mean what I say,” Ong stressed.
He said it was unfortunate that there were quarters who were uncomfortable with the matter and chose to spin “unfounded lies” about him.
“Many of them hide behind online anonymity to tarnish and discredit me, and even leak out official letters,” he said.
Ong added that it was deplorable that his representation in conveying the board’s decision could be spun by DAP adviser Lim Kit Siang as pressuring the Prime Minister.
PETALING JAYA: Transport Minister Datuk Seri Ong Tee Keat said that the RM1.2bil variation order for the Port Klang Free Zone project was approved by the Port Klang Authority board last year.
Ong said he received numerous queries on whether he had applied to the former prime minister to approve the variation order and that copies of official letters were also circulated on the Internet.
“The board had written to me, asking me to write to the then prime minister who was also the finance minister to apply for the additional funding,” he clarified in his blog posted yesterday.
“The authority was also at risk of defaulting payment as the deadline to meet its financial obligations was approaching,” Ong said, adding that he was merely relaying the decision of the board to the then PM.
He said he had just started his ministerial job less than two months ago at that time, and that the decision was made by the port authority before his tenure.
Ong also pointed out that PricewaterhouseCoopers had not even started its Position Review work.
“As the person who directed port authority to commission an independent report by a reputable international accounting firm, and asked for the findings to be made public, I have nothing to hide,” he said.
“If I did, I would not have commissioned the Position Review. From day one, I have requested nothing less than an impeccable level of transparency and accountability in tackling this issue and I mean what I say,” Ong stressed.
He said it was unfortunate that there were quarters who were uncomfortable with the matter and chose to spin “unfounded lies” about him.
“Many of them hide behind online anonymity to tarnish and discredit me, and even leak out official letters,” he said.
Ong added that it was deplorable that his representation in conveying the board’s decision could be spun by DAP adviser Lim Kit Siang as pressuring the Prime Minister.
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