PKFZ: MACC said 'case closed' in 2004

The Malaysian Anti-Corruption Agency (MACC) had probed alleged graft involving the Port Klang Free Zone (PKFZ) project back in 2004 but no action was taken because it concluded there was ‘no case’.

This was revealed by MACC’s investigation director Mohd Shukri Abdull (pic: right) when testifying before the Public Accounts Committee inquiry regarding PKFZ.

“(Investigations) were done by Selangor ACA (as it was then known), and the (investigations into the) case were completed. The prosecution (department) decided to close the case as there was no case,” Shukri testified.

This was revealed in the June 23 transcript of the inquiry which also recorded MACC Director-General Ahmad Said Hamdan as also being interviewed as a witness simultaneously.

Shukri’s was responding to questions from Petaling Jaya MP Tony Pua (pic: left) who corrected Ahmad Said Hamdan for saying the commission only received a report on the PKFZ scandal in late 2007.
Pua pointed out that Ronnie Liu, now a Selangor executive council member, had lodged four reports with the then ACA.

Following this, Pua pointed out that according to page three of the 2008 Pricewaterhouse Coopers (PwC) audit report on PKFZ, documents in the possession of the MACC were used as reference.

He adds that with this information, PwC was able to raise elements of abuse of power and other abuses and questioned why the Selangor ACA was unable to do so with the same information.

In reply, Shukri said Selangor ACA was unable to detect any elements of corruption or abuse of power but however did launched fresh investigations following the release of the 2007 Auditor-General’s Report.

“In fact, investigations were completed but when the PwC report came out I took back the investigation papers from the prosecution department to see if there were new issues which required (further) investigations,” said Shukri.

15 witnesses called in

Shukri stressed that back in 2004, Selangor ACA was focusing on the “criminal element” of the case which, however, it failed to prove.

Pressed further, Shukri confirmed that even before 2007, it had probed alleged abuse of power in the issuance of several controversial ‘letters of support’ by an unnamed former transport minister.

However, he said ACA’s prosecution department had deemed that the letters were not an abuse of power.

The decision not to prosecute by the MACC contradicts PAC’s recommendation yesterday that former transport minister Chan Kong Choy be probed for abuse of power and criminal breach of trust in the issuance of those letters.

According to PAC, Chan could not have issued guarantees of government liability without the approval of the Treasury. It further notes that Attorney-General Abdul Gani Patil in his testimony to the PAC was of the opinion that the letters were a form of guarantee.

Meanwhile, Ahmad Said, in his testimony on that day, said only 15 witnesses were called in by the MACC but declined to reveal their identity.

Upon further probing by the PAC members, he revealed that the 15 did not include Abdul Gani or PwC representatives.

Double standards?

The transcripts also recorded Ahmad Said and Shukri repeatedly refusing to answer numerous questions posed by the panel, claiming that the issues raised were still under investigation.

Shukri defended MACC’s position by citing Section 29 (4) of the Malaysian Anti-Corruption Commission Act 2009 which states that contents of investigations cannot be revealed to any party except after the accused is charged in court.

An irate Pua had then shot back by reminding Ahmad Said (pic: right) that he had revealed contents of investigations with regards to the MACC probe on Selangor Menteri Besar Khalid Ibrahim’s alleged abuse of power in donating cows to be slaughtered for religious rituals.

Ahmad Said refused to account for the apparent double standards, setting off an exchange between him and Pua before PAC chairperson Azmi Khalid stepped in.

Ahmad Said: Mr Chairman, I think I don’t have to answer this question

Pua: This is contempt!

Ahmad Said: It is not contempt. I’m not going to respond you. Ask me about Port Klang Free Trade Zone. I’m not going...

Pua: I’m asking about your explanation.

Ahmad Said: No.

Pua: Your explanation to Parliament (through the PAC)...

Ahmad Said: I don’t have to answer that. Thank you, Mr Chairman.

When pressured for a time frame to complete investigations, Shukri, after some hesitation, said six months more was needed because the investigations needed to be thorough.

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