Kong 'ministerially accountable' for RM1.4bil loss

Transport Minister Kong Cho Ha is “ministerially accountable” should the Port Klang Authority (PKA) fail to get back from Kuala Dimensi Sdn Bhd (KDSB) the millions it had paid KDSB’s bondholders, charges DAP national publicity secretary Tony Pua.

This is because Kong had exercised his ministerial authority last week and directed PKA to pay KDSB special purpose vehicle (SPV) Free Zone Capital Bhd and Special Port Vehicle Bhd a total of RM372.58 million.

Members of the PKA board of directors, Pua (right) noted, was reportedly of the view that such payments should be withheld pending its on-going dispute and litigation against KDSB for allegedly overclaiming RM1.4 billion.

There are also concerns that even in the event it succeeds in its suit against KDSB, PKA may not be able to recover funds from the former.

“The question then is, who will be responsible for this loss of RM1.4 billion to the country?” asked Pua in a statement today.

“Kong has single-handedly made the decision to make this payment and he must be held ministerially accountable and responsible for this payment to the bondholders.  

“Kong must also clarify if he has made full and proper representation of the prevailing issues to the prime minister and the cabinet before this decision is arrived,” he added.

Misled cabinet?

Citing the charges against former transport minister Ling Liong Sik (left) for allegedly committing fraud and misleading the cabinet over the valuation of the land purchased for the Port Klang Free Zone (PKFZ), Pua said similar questions should also be posed to Kong.

This is because of evidence that KDSB had itself undertaken to foot whatever outstanding amount not paid by the PKA to the bondholders via the four SPVs, said Pua.

“Or has the prime minister and the cabinet been misled as well by Kong into believing that the government has no choice but to make the payment, despite the various letters of undertaking given by KDSB to its bondholders where in the eventuality where there is shortfall of payment from the government, KDSB will make up for such a shortfall?

“Kong (right) has even refused to consider various suggestions to hold the payments due in escrow, to be made to the rightful parties only after the court case has been concluded,” said Pua.

Describing Kong’s actions as ‘reckless’, Pua said they can only be interpreted as moves to bail out KDSB from having to make “hundreds of millions” in outstanding repayments to its bondholders.

“If the transport minister has failed to brief the cabinet of the pertinent points with regards to the bond and the on-going litigation against KDSB by PKA, and should PKA be unable to reclaim the RM1.4 billion fraudulently claimed by KDSB, then Kong must be similarly charged in court like the former transport minister, Ling Liong Sik, for allegedly defrauding the cabinet and possibly even conspiring to cause massive losses to the government of Malaysia.”