Vocal member of Parliament Shahrir Samad today said the authorities must investigate for possible corruption involving the country's troubled port operator which has piled up over a billion ringgit in debts.

As the extent of Port Klang's debt problems filters out in the local financial press, there has also been widespread speculation of a possible bailout from the government of Prime Minister Abdullah Ahmad Badawi.

The bailout, if pushed through, could become the biggest in Malaysia's history, said Shahrir, chairperson of government's powerful Public Accounts Committee.

Shahrir said government's main economic agenda before the scandal broke out was its budget report due out next month.

"But (now) we must certainly look into this matter which seems very serious," Shahrir said.

With mismanagement of funds appearing to be the case "then we must speak to the relevant authorities of Port Klang and a full-scale investigation will be conducted," said Shahrir.

"It is up to government when to allow the police and the Anti-Corruption Agency to take the matter even further," he said.

The issue remains "politically sensitive," Shahrir said, noting that the premier has repeatedly pledged transparency in all government dealings.

The prime minister, who is widely expected to call for general elections next year, has kept silent on the issue.

RM4.6 billion debt

The Port Klang Authority operates the 1,000-acre Port Klang Free Zone (PKFZ) shipping area that opened in western Malaysia last year.

It has racked up debts totalling RM4.6 billion and the management has been in disarray, reports said.

The problem was further complicated when Dubai-based Jebel Ali Free Trade Zone Authority announced last month it was pulling out of a deal to manage the zone for "strategic reasons."

The country's main opposition party DAP subsequently filed a police report seeking an investigation into the allegations of corruption that it said led to Port Klang's woes.

Several government bailouts of state-linked prominent companies, including Bank Bumiputra and Perwaja Steel, damaged public confidence in the 1990s.

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History of bailouts