KUALA LUMPUR: The decision of the Port Klang Authority (PKA) to take legal action against Kuala Dimensi Sdn Bhd over the Port Klang Free Zone (PKFZ) controversy has received the support of the Public Accounts Committee.

Committee chairman Datuk Seri Azmi Khalid said it felt that the problems regarding claims of discrepancies and irregularities which had plagued the PKFZ project had reached a stage where the matter would have to be brought to the courts.

Azmi said this after the parliamentary committee interviewed PKA chairman Datuk Lee Hwa Beng during the inquiry on the PKFZ issue at Parliament House yesterday.

Lee, who arrived at 10.30am, testified before the committee for two hours.

Azmi said Lee was not under investigation by the committee but was asked to explain the discrepancies and billings the PKA special task force had found during the course of the project.

“We wanted to know from Lee what PKA was doing to address the issues,” he added.

The committee, he said, found that it was “unusual” for the project turnkey developer Kuala Dimensi, which is a private company, to issue bonds to raise funds for the project and which had to be reimbursed by the Government.

He said PKFZ later became locked in a dispute with Kuala Di­­mensi over unpaid instalments of between RM500mil and RM1bil.

Azmi said that the Government still had to pay RM660mil annually to the bond-holders whether the developer completed the project or not.

“The Kuala Dimensi bonds had

been issued through recom

mendation from the Government through four letters issued by two former transport ministers.

“This was where the status of the letters was either regarded as supporting letters or guarantee letters.

“The unusual relationship between Kuala Dimensi, PKFZ and the bond-holders should only be decided by the court,” he added.

Azmi said Lee was cooperative during the interview, however, there were questions that he could not respond to because of the PKA’s move to initiate legal action against Kuala Dimensi.

Lee had lodged a police report against Kuala Dimensi for alleged fraud, over-billing and discrepancies of between RM500mil and RM1bil in relation to the construction of the PKFZ transhipment hub.

Azmi also said the PAC would next call up Kuala Dimensi representatives next week, while former PKA chairman and PKFZ executive chairman Datin Paduka O.C. Phang would be called up within the next two weeks.

He said the PAC would also pay a visit to the PKFZ site in Klang to get a better perception on the project.

Met by reporters, Lee said he was glad to come the PAC inquiry, adding that “the truth will prevail.”

“We will call for a press conference once we have implemented some decisions on the issue,” he said.