Liong Sik's memory lapse impairs PAC hearing

Former transport minister Ling Liong Sik was unable to recall certain events regarding the inception of Port Klang Free Zone (PKFZ) when quizzed today by the Public Accounts Committee (PAC).

He tried to answer all the questions, but there were things that he could not remember (such as) decisions made 10 years ago, PAC chairperson Azmi Khalid said after the hearing in the PKFZ inquiry.

But overall, Azmi (pix: right)said the PAC is satisfied with Ling s answers adding that he was cooperative and had appeared without legal representation before the inquiry panel.

Azmi said Ling had told the PAC "his story" about the rationale for PKFZ and how the land was acquired.

He said Ling may be recalled in the future should the need arise.

"We obtained his views and we asked him what had happened. We will make a conclusion after gathering all the data and statements (from other sources)," said Azmi.

Not guarantee letters

On purported letters of support for the project inked by Ling, Azmi said these were not guarantee letters and were written at the suggestion of ministry officials and legal advisers.

Critics have claimed that Ling and his successor Chan Kong Choy had signed four letters expressing government's undertakings to subsidiaries of PKFZ turnkey contractor, Kuala Dimensi Sdn Bhd.

Based on the guarantees, critics have argued that Kuala Dimensi secured a AAA rating from the Malaysia Rating Corporation Bhd for the project and this allowed them to raise RM4.6 billion through bonds.

Any financial undertaking by the government can only be made by the Finance Ministry. One of the critics, now parliamentary Opposition Leader Anwar Ibrahim, had alleged that Ling and Chan had abused their powers.

Today, the press was barred from the floor in Parliament House where the PAC hearing was being held and was therefore unable to approach Ling for comments.

Why the haste?

Meanwhile, Azmi refused to reveal the identity of other individuals who will be called in but did not rule out the possibility of former Selangor Menteri Besar Dr Mohd Khir Toyo being one of them. He was in office when the 2002 PKFZ land deal was made.

Azmi said that current Transport Minister Ong Tee Keat will testify tomorrow, while other ministers and former ministry secretaries would also be called in.

He said the PAC will be looking into the land acquisition and why bonds were issued without government guarantees despite the government suggesting this earlier.

He said the PAC will also look scrutinise why the project, spanning hundreds of hectares, was not developed in stages.

Developers usually do this in phases and sell or rent the properties before moving to the next phase.

In the context of PKFZ, it was all done at once, said Azmi, adding that occupancy at PKFZ now stands at 14 percent.

Azmi said the PAC hopes to produce a report from the hearing before the October sitting of Parliament.

He said that interviews with witnesses will be reproduced verbatim in the report.