He said if DAP chose to help campaign for PAS’ candidate in Kuala Terengganu, then it would mean that the party supported public whipping, amputation and stoning for criminal offences under the hudud laws which PAS said it would implement if it came to power.

“Mere words objecting to PAS vice-president Datuk Husam Musa’s statement on the issue would not suffice if not backed by action,” Ong said in his blog (www.ongteekeat.net).

He chided DAP adviser Lim Kit Siang for calling on MCA not to campaign in the by-election over his (Ong) media conference regarding the Port Klang Free Zone (PKFZ) on Sunday.

“I think this is Lim’s latest attempt to distract the public from one of the worst crises facing the Pakatan Rakyat following the controversial statement by Husam.

“Husam has only confirmed what the public has known about PAS’ intention all along – to set up an Islamic State and introduce hudud laws if it comes to power at the national level.

“We can now clearly see signs of discord in the eight-month-old Pakatan Rakyat, which was formed as a marriage of convenience, whose member parties have starkly different, if not opposing, ideologies,” he added.

Husam, in a debate with Umno Youth deputy head Khairy Jamaluddin on Saturday night had stated that hudud and qisas laws would have been implemented if Pakatan Rakyat had managed to take control of the federal government as planned on Sept 16.

Ong said the latest criticism from Lim merely showed that the DAP was terrified that MCA would win over the almost 9,000 Chinese voters in the constituency.

Chinese votes, he said, were the key to Barisan’s victory and MCA would not only work hard to win them over, but also help woo voters of other races.

Ong said the fact that Lim had issued two statements on the PKFZ in as many days only proved that the party was facing a dearth of issues for the by-election.

He noted that even Selangor Mentri Besar Tan Sri Khalid Ibrahim had acknowledged that the PKFZ was a viable project.

Ong added that he had answered queries related to the PKFZ issue as early as last May in Parliament.

On the letters issued by his predecessors in the Transport Ministry, Ong said he wanted to repeat that they were not guarantee letters, but merely letters confirming that there was an agreement between Port Klang Authority and Kuala Dimensi Sdn Bhd.

He said PriceWaterhouse-Coopers (PWC) was finalising its audit on the corporate governance of PKFZ, among others.

“I have said that there will be no interference on my part or the Government and I stand by my words. It is unnecessary to jump the gun before the PWC report is released,” he said.

I am surprised that the MCA president Datuk Seri Ong Tee Keat is saying things that makes neither sense nor logic. It would appear that his short tenure as the MCA President has imposed such a tremendous pressure that he is speaking and acting, to many, completely out of character.

Yesterday, he came out with a blog entitled “DAP, not MCA, should boycott KT by-election”, which was promptly reported by the Star online, with the headline “Boycott by-election, DAP told” as follows:

PETALING JAYA: MCA president Datuk Seri Ong Tee Keat has asked DAP to boycott the Kuala Terengganu by-election campaign as a matter of principle if it is really against PAS’ plan to implement hudud and qisas laws if it comes to power at the national level.

He said if DAP chose to help campaign for PAS’ candidate in Kuala Terengganu, then it would mean that the party supported public whipping, amputation and stoning for criminal offences under hudud laws.

“Mere words objecting to PAS vice-president Datuk Husam Musa’s statement on the issue would not suffice if not demonstrated by action,” Ong said in his latest posting in his blog.

Ong is not making any sense firstly, as he is flying in the face of the DAP record and history in trying to suggest that the DAP supports “public whipping, amputation and stoning for criminal ofences under hudud laws” – a suggestion which is so ludicrous that it does not deserve rebuttal!

It will not be surprising if such a ridiculous allegation had come from his lowly lieutenants who have no integrity to defend but I am amazed and wonder what has happened to Ong that he could descend to such a depth in so short a time after becoming MCA President!

Secondly, Ong is also not making any sense with his blog as I never suggested that MCA boycott the Kuala Terengganu by-election.

Going by his logic, Ong should lead MCA to quit the Barisan Nasional unless UMNO leaders repent and withdraw their seven-year stand that Malaysia is an Islamic state which is not only unconstitutional but totally contrary to the Merdeka social contract reached by the forefathers of the major communities on the attainment of Independence in 1957 that Islam is the official religion but Malaysia is not an Islamic state!

On Sept. 29, 2001, the then Prime Minister and Umno President, Datuk Seri Dr. Mahathir Mohamad declared that Malaysia was an Islamic State, committing the MCA without referring the issue first for consultation with and consent of the MCA leadership and membership.

But there was no need for any prior consultation or consent from the MCA leadership in the “unequal relationship” between Umno and MCA, as evident from the quick public support given by the MCA leadership to the “929 Declaration”: that Malaysia was an Islamic State, although this went against all that the MCA founding fathers in particular Tun Tan Cheng Lock and Tun Tan Siew Sin had stood for.

Who is really to be blamed for UMNO playing the “bully” in the Umno-MCA relationship?

In the past seven years, this “929 Declaration” that Malaysia is an Islamic State was repeated again and again by Umno leaders, the latest by the Prime-Minister-designate Datuk Seri Najib Razak, in July last year, with the MCA leadership continuing to give tacit support.

Going by Ong’s logic in his blog, shouldn’t he be leading the MCA to quit Barisan Nasional unless UMNO leaders repent and withdraw their seven-year-old stand that Malaysia is an Islamic state, especially when this is clearly against the Malaysian Constitution and the Merdeka “social contract” that while Islam is the official religion, Malaysia is not an Islamic state?

Ong and MCA should learn from the DAP, for DAP leaders had no hesitation in publicly declaring that PAS Vice President Datuk Husam Musa was wrong and mistaken as hukum hudud is neither DAP nor Pakatan Rakyat policy – leading to Husam admitting that the DAP is right.

I will like to know where Ong got the idea that I had proposed that the MCA boycott the forthcoming Kuala Terengganu by-election, resulting in his retort that it is the DAP which should boycott the by-election.

On Wednesday, I had said that “there is no need for MCA to help in the Barisan Nasional campaign for the Kuala Terengganu by-election next month” if Ong could not publicly furnish the answers to the Five Questions I had posed to him in April about the RM4.6 billion Port Klang Free Zone (PKFZ) scandal

My language was simple and clear. I was not asking the MCA to boycott the Kuala Terengganu by-election but giving a clear warning that the new MCA President and leadership risk being exposed in the by-election as having failed to honour Ong’s public pledge on accountability, transparency and integrity by “telling all” about the RM4.6 billion PKFZ scandal – as Ong’s press conference on Sunday was nothing but a “cover-up” and a “white-wash” of the RM4.6 billion PKFZ scandal!

My warning to Ong remains – that unless he is prepared to honestly and truthfully answer the Five Questions on the RM4.6 billion PKFZ scandal, in particular the role of the two former MCA Transport Ministers, he will be confronted with these questions in the Kuala Terengganu by-election and the MCA will not be rendering any help to the Barisan Nasional by-election campaign if the MCA President and leadership are seen as terribly defensive or worse, as being “on the run”, from giving full and proper accountability for the PKFZ scandal.

The company had to purchase the land from the owner, Kuala Dimensi Sdn Bhd, at the prevailing market prices because it could not obtain it through the Acquisition of Land Act 1960.

The land was issued with a development order and it therefore had economic value. Land acquisition under the Act can only be made for public purposes whereas the company had earmarked it for economic purposes. The land, therefore, could not be acquired under the Act, said PKFZ Sdn Bhd executive chairman Lim Thean Shiang yesterday, clarifying media reports published on Monday.

On Sunday, Transport Minister Datuk Seri Ong Tee Keat released the PKFZ chronology to the media.

Lim said PKFZ Sdn Bhd agreed in 1999 to a price of RM25 per sq ft, a total of RM1.088bil, for the land with its development order and with infrastructure that is now completed.

The total cost of the PKFZ project, including this land cost, office complexes and other construction costs, is RM4.6bil.

The payment terms, somewhat similar to that of private finance initiative or PFI, are to be paid over a 15-year period. The payments are made to bondholders, mainly financial institutions.

Lim said that so far, PKFZ Sdn Bhd had paid RM1.38bil to bondholders under the scheduled payment terms.

That leaves a balance of about RM3.22bil to be paid under the schedule.

PKFZ Sdn Bhd funds this projectthrough a long term soft loan at an interest rate of 4% from the Ministry of Finance.

On the termination of Dubai-based Jebel Ali Free Zone International (Jafza) as the manager of PKFZ last year, Lim said it was over differences of its corporate policies and Malaysia’s tax regulations and national interest.

Jafza proposed tax incentives for 50 years but Malaysia’s tax regulations allow for such incentives if approved by the Ministry of International Trade and Industry, for 10 years only, Lim said.

Jafza’s role at that time was to promote and market PKFZ which was then modelled after the Jebel Ali Free Trade Zone in Dubai. Following the parting of ways, PKFZ Sdn Bhd took over that role for the zone in Port Klang.

Efforts to get more investors from S’pore, Taiwan and Mideast

KLANG: Foreign investors are still setting up factories in the Port Klang Free Zone (PKFZ) despite the global economic slowdown which poses the management of this integrated industrial and distribution hub with the challenge of having to search for new markets.

Visko Industries Sdn Bhd, a joint venture between Taiwanese and Indonesian companies, has just completed building and will soon commission its plant at the PKFZ.

A self-adhesive tape manufacturer, Visko was reported to have invested RM30mil to set up this plant which has a production capacity of about 35 million sq m a month. Out of this output, about 90% would be exported to South-East Asian countries and the Middle East.

Port Klang Free Zone Sdn Bhd executive chairman Lim Thean Shiang said the zone’s newest client is Dubai-based Oilfields Supply Centre Ltd (OSC), a oil trading group, which is renovating its offices of light industrial units (LIUs) in the area now.

OSC, which is locating its South-east Asian distribution hub in the zone, will start the construction of a factory next month on a 16.5-acre piece of land. The company has an option for an additional 41 acres, and 10 units of LIU with an option of another 10.

The oil trading group will also lease four levels of a ready-built office building in the zone.

Lim, who is also general manager of Port Klang Authority, said a Singapore-based commodity trading company was expected to re-locate its warehouses and trading operations from Singapore to the free zone next year. It might lease up to 100 LIUs in the zone for its warehouses.

In view of the global recession, Lim said he would broaden the company’s marketing strategy and look for investors from more countries.

“Some of the markets that we want to put more effort in are Singapore, Taiwan and the Middle East, given that the operating costs there are higher than in Malaysia,” Lim told StarBiz yesterday.

“We also want to get local companies to support the big foreign companies that are here in the PKFZ,” he added.

PKFZ’s biggest client, also one of its first, is Aker Kvaerner Sdn Bhd, a Norwegian oil and gas company which has invested about RM500mil in its plant in the zone.

“Nothing to hide” – this was the front-page headline of Sun yesterday on Transport Minister, Datuk Seri Ong Tee Kiat’s “tell-all” press conference on Sunday on the RM4.6 billion Port Klang Free Zone (PKFZ) scandal – which told absolutely nothing!

Although Ong adopted the stance that he had “nothing to hide”, in actual fact he had hidden the most important fact in his “chronology of events” on the RM4.6 billion PKFZ scandal – the RM4.6 billion retrospective approval given by the Cabinet in June 2007 to bail-out the four unlawful “Letters of Support” which gave implicit government guarantees issued by the two previous MCA Transport Ministers to the money market for the RM4.6 billion bonds for the PKFZ project.

Both the two previous MCA Transport Ministers had acted unlawfully, as they had no powers to issue financial guarantees committing the government, which could only be issued by the Finance Minister and only after Cabinet approval.

However, the Malaysian Government would have created a major crisis of confidence in the international money market if the Cabinet had not bailed out the two MCA Transport Ministers and given retrospective approval to the four Letters of Support which gave implicit government guarantees to the RM4.6 billion bonds issued by Kuala Dimensi Sdn. Bhd (KDSB), the PKFZ turnkey contractor, for the PKFZ project.

Can Ong explain why he had deliberately omitted this important fact in his “chronology of events”, which need not have to depend on the outcome of the Pricewaterhouse Cooper audit report? Or is he denying that Cabinet had given such retrospective approval?

I am still waiting for Ong to answer the five questions about the RM4.6 billion PKFZ scandal which I had posed to him nine months ago, particularly about the history of impropriety in land transactions, illegal issue of Letters of Support, Cabinet bailouts and retrospective ratification of illegal decisions by the two previous MCA Transport Ministers, Tun Liong Liong Sik and Datuk Seri Chong Kong Choy.

Let Ong publicly furnish the answers to the five questions about the RM4.6 billion PKFZ scandal or there is no need for MCA to help in the Barisan Nasional campaign for the Kuala Terengganu by-election next month.

I would not have used the strong and harsh language in response to the Transport Minister, Datuk Seri Ong Tee Kiat’s long-awaited “tell all” report on the RM4.6 billion Port Klang Free Zone (PKFZ) scandal, like the doyen of Port Klang bloggers, Capt. Yusof Ahmad, former pilot superintendent of Klang Port Authority and pioneer general manager of West Port, who delivered this censure in his blog, Ancient Mariner:

“If this isnt treachery and deceit, then I dont know what is.”

Or another blogger, de minimis, who exclaimed tongue-in-cheek:

“I also hear that most hardware shops in the Klang Valley ran out of stock with white paint for the whitewash needed for the Minister’s Press Conference…”

There can be no doubt however that Ong had taken Malaysians for a ride in his long-awaited “tell all” report to the nation on the RM4.6 billion PKFZ scandal – as it told absolutely nothing from what he promised when he was appointed Transport Minister after the March 8 “political tsunami”.

In one of his first statements on the PKFZ scandal on becoming Transport Minister, Ong had promised:

“I wish to inform the rakyat about the true situation – whether it was actually squandered, not squandered, and whether it has gone to, as well as the breakdown of the budget.”

Ong has failed to deliver on this pledge.

He could not even answer the five questions about the RM4.6 billion PKFZ scandal which I had posed to him immediately after his public pledge to “tell all” about PKFZ, particularly about the history of impropriety in land transactions, illegal issue of Letters of Support, Cabinet bailouts and retrospective ratification of illegal decisions by the two previous Transport Ministers, Tun Liong Liong Sik and Datuk Seri Chong Kong Choy although he had all the answers without having to await the outcome of the PricewaterhouseCooper audit report.

Ong had failed to “walk the talk” to “tell all” about the PKFZ scandal. Instead he was swaggering in his white-wash of the PKFZ scandal.

He knew for instance that the two previous Transport Ministers had acted unlawfully in issuing the four Letters of Support to Kuala Dimensi Sdn. Bhd, the PKFZ turkey contractor, to raise RM4 billion bonds, which were regarded as government guarantees by the market – which was why the Cabinet had to subsequently give retrospective approval for the unlawful and unauthorized four Letters of Support creating a RM4.6 billion liability for the government in the bailout of PKFZ.

Can Ong deny that there was such retrospective Cabinet approval in the middle of last year for the unlawful and unauthorized four Letters of Support issued by the two previous Transport Ministers?

Ong does not need to await any PricewaterhouseCooper report to admit this important fact as he should be fully aware of it.

Ong should be forewarned that his reputation for Ministerial accountability, transparency and integrity risk being buried by the RM4.6 billion PKFZ scandal, if he continues to be seen as being a party to a cover-up to prevent a full disclosure of the PKFZ scandal.

Ong can still salvage his Ministerial reputation but time is running out, quick and fast.

Investments had until March totalled RM748 million.

The bulk of the investments are in the project’s open land category, rising from RM720 million to RM916 million.

There was a 27 per cent increase, from RM28 million up to March, to RM58 million during the same period, in investments in light industrial areas.

The number of clients leasing office blocks also increased from six in March to 10. Also showing a marked increase was the number of employees, including foreigners, from 972 to 1,659 people.

Despite the overall increase in proposed investment, occupancy growth and number of employees, the percentage is still low compared with PKFZ’s capacity.

Until last month, only 18 per cent of the open land facility was occupied, the light industrial unit facility only had a 17 per cent occupancy rate while the leased office blocks had an occupancy rate of 19 per cent.

Questioned on this, Transport Minister Datuk Seri Ong Tee Keat said the figures should be viewed in comparison with similar zones such as the Jebel Ali Free Zone (Jafza).

Jafza, Ong said, took six years to fill 40 per cent of its capacity and 10 years to reach full capacity.

Former transport ministers Tun Dr Ling Liong Sik and Datuk Seri Chan Kong Choy issued four support letters to the Malaysian International Merchant Bankers Bhd, Pacific Trustees Bhd and Malaysian Rating Corporation confirming the purchase of land by Port Klang Authority (PKA) and four development agreements.

The issuance of these letters had been questioned in Dewan Rakyat by members of parliament who asked whether it was proper conduct for ministers.

Ong reiterated yesterday that a letter of support merely confirmed that a contract exists and was not a letter of guarantee.

“You are asking me to comment on my predecessors. In all fairness, this was at their discretion at that time, perhaps due to whatever reasons or circumstances.

“If you were to ask me, I might have my own views. I might not do it but that doesn’t mean that what I said or what I chose is the Gospel truth,” Ong said.

On May 28, 2003, Dr Ling issued a letter of support confirming the purchase of land by PKA for Mega Distribution Hub project to the Malaysian International Merchant Bankers Bhd and Pacific Trustees Bhd.

Chan issued three support letters from 2004 to 2006 to the Malaysian Rating Corporation to confirm the development agreement.

“Like I said in Parliament, a support letter is just to confirm that there is such a project.

“My job is not to comment on past value judgments but to enumerate exactly what had taken place,” he said.

PKFZ executive chairman Lim Thean Shiang said: “Having gone through the letters, they basically confirmed the contract entered into by relevant parties and gave no guarantee at all.

“I’m sure only the Finance Ministry has the authority to do so (issue letters of guarantee).”

PORT KLANG: After nearly 20 months of silence, Port Klang Free Zone yesterday defended the “high” purchase price of land and the termination of the previous managers, Jebel Ali Free Zone (Jafza).

PKFZ executive chairman Lim Thean Shiang said at a press conference here that the price of RM25 per square foot paid to Kuala Dimensi Sdn Bhd for the project’s 404.7 hectares was “justified”.

Kuala Dimensi had reportedly bought the land for RM3 from a fisherman’s cooperative.

“The initial offer was RM28 per square foot but we brought it down to RM25.

“We feel that it is a reasonable price as it includes infrastructure and given the holding period.

“If you look at the land price in the surrounding area, it is about RM21 per square foot,” Lim said.

Transport Minister Datuk Seri Ong Tee Keat, who was at the press conference, said whether the government paid too much for the land would only be known once PriceWaterhouseCooper’s (PWC) cost analysis was done.

PWC was appointed independent auditor for the PKFZ project, including the land purchase, whose pricing became an issue when it became public.

On the termination of Jafza as project managers, Lim said it was due to “different expectations” between the Dubai company and Port Klang Authority.

Jafza, he said, was hired to help promote and market the PKFZ, and to capitalise on its expertise and contacts to bring in investors.

“Sadly, the investors did not come in even after two years and we decided to take over promotion and marketing.”

He said Jafza was also not aware of the government’s policies.

“For example, they wanted to give a tax holiday of 50 years to investors but Malaysia’s policy is only to give 10 years.

“They also wanted full autonomy to run PKFZ but this clashed with the government’s intentions as we are subject to certain procedures, such as going through the Customs Department and other agencies.

“Jafza thought that they could duplicate Jebel Ali (in Dubai) here at PKFZ but that cannot happen so we decided to terminate our contract with them.”

He denied accusations that the project was hamstrung by political interference, excessive red tape and vested interests as alleged by Jafza.

Lim insisted that they parted ways amicably.

Ong said claims of tax evasion attempts, and abuse of power by politicians and officials overseeing the project would also only be answered after PWC submitted its report.

He, however, defended the conduct of his predecessors, Tun Dr Ling Liong Sik and Datuk Seri Chan Kong Choy.

To counter accusations that PKFZ was a white elephant which tax payers had had to bail out, he released figures to show that it had been steadily getting investors since March.

Ong said his ministry was confident that the project would re-coup its RM2.94 billion cost (for land and construction) and that PKFZ could service its RM4.632 billion loan.

After a change of management in May and up to last month, he said, PKFZ had signed on 58 clients who had brought in RM974 million in investments.

Menteri Pengangkutan, Datuk Seri Ong Tee Keat, berkata, pencapaian itu lebih baik berbanding Jebel Ali Free Trade Zon (Jafza) di Dubai yang mampu menarik pelaburan 40 peratus dalam tempoh enam tahun.

“Ini permulaan yang baik kepada PKFZ walaupun baru dibuka dua setengah tahun. Prestasi ini diharap menangkis tohmahan yang menuduh PKFZ sebagai projek gajah putih,” katanya pada sidang media mengumumkan kronologi pembangunan PKFZ di sini, semalam.

Hadir sama, Pengerusi Lembaga Pelabuhan Klang (LKP), Datuk Lee Hwa Beng dan Pengerusi Eksekutif PKFZ, Lim Thean Shian.

Ong berkata, setakat bulan lalu, PKFZ mencatatkan pelaburan RM974 juta dengan 58 pelabur tempatan serta asing dan menyediakan 1,659 peluang pekerjaan.

Katanya, 46 hektar daripada 77 hektar tanah kosong disediakan PKFZ disewa 14 pelanggan, manakala 34 daripada 60 Unit Industri Ringan (LIU) disewa dan 95,033 daripada 25,000 kaki persegi ruang pejabat juga disewa.

Beliau berkata, jumlah pergerakan kargo kontena di PKFZ meningkat 495 peratus dengan 8,015 TEU bulan lalu berbanding hanya 809 TEU pada Mac, manakala bukan kontena meningkat 307 peratus dalam tempoh sama.

Ong berkata, penamatan kontrak Jafza yang bertanggungjawab mengurus dan mempromosikan PKFZ pada Julai tahun lalu tidak menjejaskan usaha menarik pelabur dari Timur Tengah.

Sementara itu, Lim berkata, kontrak Jafza ditamatkan kerana polisi syarikat berpangkalan di Dubai berbeza dengan PKFZ yang tertakluk di bawah Kementerian Pengangkutan selain perlu mematuhi syarat pelaburan yang ditetapkan Kementerian Perdagangan Antarabangsa dan Industri (Miti).