The search for the truth starts
By R. Nadeswaran, TheSun
IN mid-2003, the first signs of impending problems at the Port Klang Free Zone (PKFZ) were published in this newspaper. It was a passing comment in the No Punches Pulled column which appeared in the now-discontinued Sun Weekender. I had briefly touched on the price of the land which was bought from the local co-operative at RM3 per sq ft and sold to the Lembaga Pelabuhan Klang (LPK) or the Port Klang Authority (PKA) at RM25 per sq ft.
No one responded to my subsequent scathing columns which demanded answers. The silence from the Transport Ministry and the PKA was deafening. Despite regular reminders, nothing was forthcoming except an anonymous letter which landed on our desk a few months later. It started:
LPK was always financially strong. In fact, it was the best managed statutory board in the country in the 1980s and 1990s. During the final phase of privatisation in 1995 it had RM450 million in reserves in a government approved bank. It was debt free in spite of building the first phase of West Port. Interestingly. LPK also paid RM50 million as taxes to the government. Today, we understand that LPK as a regulator with less than 100 staff will not be able to finance its budget from internal resources. What happened to all the funds? Who is responsible for the total financial mismanagement? All fingers point to three possible parties as custodians of the Port Authority’s funds…
This precipitated what was to become a series of exposes on the biggest financial scandal in this country, dwarfing the Bumiputra Malaysia Finance (BMF) scandal which rocked the country in the 80s. A series of explosive articles and columns continued exposing the weaknesses, abuse and misuse of power. We were careful not to point fingers at anyone as we are merely journalists pointing out the faults. We could not and will never be the judge, jury and executioner. We left it to the authorities to act, but it was not until a new minister who took over the transport portfolio when the wheels of justice began turning. Datuk Seri Ong Tee Keat called in independent auditors and the rest, as they say, is history.
Today is not the culmination of the scandal that has dogged three former transport ministers, three past chairmen of the PKA and dozens of civil servants and individuals who served on the board. The trial of former PKA general manager Datin Paduka Phang Oik Choo will give a glimpse on how the PKA ended up insolvent and had to go with a begging bowl to seek a bailout. Let’s not prejudge the issue. The concept of innocent until proven guilty must prevail.
Phang is accused of three counts of criminal breach of trust (CBT) involving RM254.85 million from three RHB accounts between Oct 1, 2004 and May 9, 2006 and if convicted, faces a maximum 20 years’ jail and a fine on each charge.
The trial of Malaysia’s biggest financial fiasco where the development costs of the 1,000-acre integrated cargo distribution hub and industrial park escalated from RM2 billion to RM4.6 billion will be watched closely. Others charged in the PKFZ scandal are former Kuala Dimensi Sdn Bhd (KDSB) project director Law Jenn Dong, 51, KDSB CEO Stephen Abok, 51, and architect Bernard Tan Seng Swee, 48, from BTA Architect. KDSB is the turnkey developer for the PKFZ project while BTA Architect was the project’s consultant.
Going back to the ominous warnings of the financial disaster which stood before us and the failure to act by the authorities will be an exercise in futility. Delving into the past is of little use. Lest we are accused of contempt of court, we will refrain from commenting on the case proper or making judgments.
