It began as a RM1.96 billion project to transform Port Klang into a regional transhipment hub. Ten years later, the cost has ballooned to RM12.5 billion. Here's how we got into the mess.

March 24, 1999 - Cabinet approves the Port Klang Free Zone (PKFZ) project, which was modelled after the Jebel Ali Free Zone (JAFZA) in Dubai. It was part of a strategic plan to transform Port Klang into a national load centre and regional transhipment hub. The original cost in 2001 was RM1.957 billion.

klang pkfz pricewaterhousecoopers port klang freezone map detail layout of the area 280509 June 27, 2001 - The Port Klang Authority (PKA), which owns PKFZ, enters into a memorandum of understanding with Jebel Ali Free Zone International (JAFZI) and on Oct 24, 2003 appointed the Dubai company to operate and manage PKFZ for RM12.3 million over 15 years (up to 2018).

Nov 2006 - PKFZ was launched. Its original cost had ballooned to RM4.6 billion by the time the project was completed.

July 2007 - JAFZI's services was terminated. The first sign of trouble was detected when it was reported that a JAFZA official, Noel Gulliver, who was PKFZ general manager, was taken away by the Immigration Department for not having a work permit.

Aug 13, 2007 - A local newspaper reports that JAFZI had pulled out of the deal to manage PKFZ due to political interference, vested interests, etc. It was also reported that there was friction between officials of JAFZA and PKA, and that letters to Transport Minister Chan Kong Choy about some of these problems went unanswered.

Aug 15, 2007 - Public Accounts Committee (PAC) chairman Shahrir Abdul Samad said news reports about the falling out between JAFZA and PKA raised serious concerns on whether there would be a government bail-out to fix the problem.

port klang free zone pkfz white elephant 280509 Sept 4, 2007 - The government announces the approval of a soft loan to PKA. Ministry of Finance issues a 20-year soft loan, worth RM4.632 billion, to fund PKFZ. The total project cost rose to RM7.453 billion due to interest payments.

Sept 6, 2007 - PKA general manager OC Phang and officials from the Transport Ministry appear before the PAC but the committee was dissatisfied with the answers pertaining to project financing. PAC again visited PKFZ on Oct 18 but still came away with more questions than answers.

May 2008 - PKFZ appoints audit firm PriceWaterHouseCoopers Advisory Services Sdn Bhd (PwC) to conduct an independent overall audit on the accounts of the PKFZ project following a public outcry over the soft loan given by the government.

June 30, 2008 - PKA signs a loan agreement for RM920 million with the government.

Dec 31, 2008 - It was reported that only 77 units out of a total 512 units of the Light Industrial Units (LIU) in PKFZ were rented out. The low occupancy of 14 percent could not generate sufficient revenue to cover its operating expenses.

April 29, 2009 - Transport Minister Ong Tee Keat orders the release of the PKFZ report within a week. Due to some technical issues, the findings by PwC were only made public on May 29, 2009.

June 10, 2009 - Ong announces the setting up of a special task force to make recommendations to PKA on how to rectify the wrongs and pursue appropriate legal action in respect of the PKFZ audit report.

June 22, 2009 - Ong told Parliament that PKFZ's entire project cost could reach RM12.453 billion by 2051 if no intervention and efforts are made to promote it.

Aug 11, 2009 - PKA lodges a police report over billing discrepancies of between RM500 million and RM1 billion following a task force finding. The report was lodged by PKA chairperson Lee Hwa Beng against developer KDSB and BTA Architect over possible fraudulent claims.

klang pkfz pricewaterhousecoopers pkfz the parties involved 280509 Aug 12, 2009 - KDSB chief executive officer Tiong King Sing hits back alleging that he had given a loan of RM10 million to Ong. Tiong is the Bintulu MP, chairman of the Backbenchers Club and treasurer-general of the Sarawak Progressive Democratic Party.

Aug 24, 2009 - Ong files a staggering RM500 million lawsuit against Tiong over the RM10 million donation claim.

Aug 26, 2009 - OC Phang was named, among four parties, as being responsible for the PKFZ scandal in a rpeort lodged with the Malaysian Anti-Corruption Commission by PKA chairman, Lee Hwa Beng.

Aug 31, 2009 - A statement from the Prime Minister's Office said that the government was committed to the investigations into the PKFZ issue. It said the relevant authorities, including PAC, were already conducting their investigations into the alleged wrongdoings and it was best that they be allowed to complete the investigations.

Sept 3, 2009 - OC Phang startled the PAC, when she claimed she did not know what a cash flow projection means, leading the PAC to conclude that poor management failed PKFZ.

Oct 8, 2009 - PKA, through its lawyers Skrine & Co filed, a suit against Phang for breaches of her fiduciary, contractual and common law duties to PKA over the Port Klang Free Zone multi-billion ringgit fiasco. It contended that she had failed to exercise due care, diligence and skill in the discharge of her duties as PKA general manager.

Dec 10, 2009 - Phang and two others were charged with criminal breach of trust (CBT) and for making false claims in the Klang Sessions Court. She claimed trial to three charges of CBT amounting to RM254 million. She was granted bail of RM350,000 and her passport will be impounded only from Jan 12 to facilitate her travel to the United States. The court fixed Feb 4 for mention of the case.

- Bernama