May 18, 2009

The Star

Public release of PKFZ report up to Cabinet

The decision to make public the audit report on the Port Klang Free Zone (PKFZ) project lies with the Cabinet, said Port Klang Authority chairman Datuk Lee Hwa Beng.
 
He said this was because the issue had been deliberated during the last two Cabinet meetings.
 
“The Port Klang Authority (PKA) has no power to release the report because it is being discussed at the Cabinet level,” he told a press conference after chairing a PKA board meeting here on Thursday.
 
He was unable to say when the Cabinet would decide whether to make the report public or not, adding that he had not had a chance to meet Transport Minister Datuk Seri Ong Tee Keat after Wednesday’s Cabinet meeting.
 
The Government had last year instructed PKA to commission an audit on the PKFZ project after a public outcry over massive cost-overruns. PricewaterhouseCoopers (PwC) was appointed to task.
 
The ministry has frequently promised that the report would be made public. Lee had written to PwC on April 30 to seek its consent following Ong’s instruction to release the report within seven days.
 
However, PwC replied on May 4 that consent would be given subject to certain terms and conditions, requesting indemnity.
 
On the matter of issuing an indemnity letter to the audit firm, Lee said on Thursday that PKA had been informed by its legal advisers that it could still initiate legal action against the audit firm if the need arose.
 
“We were told that we could countersue PwC if there was negligence on its part in the event a third party sues them,” he said.
 
The Malaysian Anti-Corruption Commission has started investigations into the controversy, and will intensify its probe once it has obtained a copy of the PwC report which has detailed cost overruns amounting to billions of ringgit and a trail of improper and poor decisions during the development of the project.

    
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