Task force on PKFZ set up
By Husna Yusop
PUTRAJAYA (June 10, 2009) : Two weeks after an independent audit report on the Port Klang Free Zone fiasco made shocking disclosures on management and governance issues, a special task force has been set up to pave the way for action to rectify the wrongs and to pursue appropriate legal remedies.
Transport Minister Datuk Seri Ong Tee Keat, who announced this at a press conference today, said he has given the task force two months to come up with recommendations based on the findings of the PricewaterhouseCoopers (PwC) audit report.
He said two committees — Committee on Corporate Governance and an Executive Committee — have also been formed to oversee all future governance issues to ensure that the lapses that have been identified in the report do not recur.
The task force is headed by Skrine and Co’s Vinayak Pradhan, who is also former commissioner with the United Nations Compensation Commission and member of the Permanent Court of Arbitration. He will be assisted by Skrine partner Lim Chee Wee, PwC Advisory Services Sdn Bhd (PwCAS) managing director Chin Kwai Fatt and senior executive director Lim San Peen.
Transparency International-Malaysia president Datuk Paul Low Seng Kuan heads the Corporate Governance Committee. Another committee member is Nik Mohd. Hasyudeen Yusoff, president of the Malaysian Institute of Accountants.
PKA chairman Datuk Lee Hwa Beng heads the Executive Committee, which will plan and monitor the business development of the PKFZ.
Ong, who had earlier met the key people in the task force and the committees, said: “They have given their commitment to perform proper and transparent tasks. A lot of work lies ahead and I have given the task force no longer than two months.
“They should come back with clear recommendations on how to rectify the wrongs and pursue appropriate legal remedies.”
Lee said in a statement the task force will assist in legal review and financial restructuring, adding other professionals as appropriate may be engaged later.
“The task force has to make in-depth analysis and studies within their given scope of expertise and provide PKA the appropriate recommendations for follow-up action to be taken by the government,” he said.
Lee said PKFZ has to strengthen its marketing and management expertise and come up with more innovative and sustainable campaigns and operating systems to attract more investors.
“The executive committee must at the same time ensure that all future activities and new developments at PKFZ are carried out in a cost effective and transparent manner,” he added.
Other members of the exco are Federation of Malaysian Manufacturers chairman Tan Sri Prof Dr James Alfred A. David, Malaysian Industrial Development Authority director-general Datuk Jalilah Baba, Real Estate and Housing Developers Association (REHDA) deputy president Datuk Michael Yam, HRSC System & Consulting Sdn Bhd chairman Datuk Mohd Haslah Mohd Amin and Tan Goh & Associates managing partner Tan Foong Luen.
At the same time, Ong said a new website www.pkfznews.com.my has been created to provide updates and relevant news in relation to the PwC report and questions arising to avoid irresponsible parties from making unsubstantiated claims and allegations.
“The opposition has been harping on a number of issues regarding the PKFZ project. It is very inappropriate to engage in a tit-for-tat. The website will address the questions. Whilst the technical answers are set out in the site, I shall continue to address the larger concerns and broader strategies,” Ong said.
He added that since the whole nation is watching the development as it unfolds, the government was mindful that it must act in the best interest of the people.
Asked to specify the terms of reference of the task force, Ong said: “We are looking into the nitty gritty details, including the outstanding debts and all financial details because we believe there are more things we should do in the best interest of the people.”
He added that some of the contracts highlighted in the report would also be re-looked.
Asked if the ministry was serious in taking action against those responsible, Ong said: “We will work within our jurisdiction. That’s why immediately after the release of the report, I directed Lee to hand over a copy to the Malaysian Anti Corruption Commission and Public Accounts Committee.”
However, he said the task force will not look into the RM148 million lawsuit by Mega-Wan Sdn Bhd against PKA as it is considered a separate matter.
He also refused to pre-empt any legal actions that may arise from the task force recommendations.
Pressed if the ministry could take action against anyone, Ong said: “I am not going to put the cart before the horses now. We have to follow the procedure with due diligence.”
On Kuala Dimensi Sdn Bhd (KDSB) chairman Datuk Seri Tiong King Sing’s lawsuits against individuals including the person in charge of PKA, Lee said: “He has been making many statements about taking actions. Until we receive it (legal letters), I won’t comment.”
KDSB sold the Pulau Indah land to PKA and is also the turnkey developer for the PKFZ.