Chan Kong Choy did a Houdini Act to Jafza


Back to Kong Choy and the PKFZ debacle .

Chan Kong Choy did not reply to Jafza on the PKFZ difficulties . He was running away from its problems , in other words whether PKFZ survived or not , he couldn't care less .

In August 2007 the original cost of the project had ballooned from RM2 billion to RM4.6 billion because of, among others, overvalued land costs.

Despite all the investment poured into the PKFZ, what it has to show are rows of unoccupied buildings, an incomplete four-star hotel and kilometers of pothole ridden roads.

Documents obtained revealed that the falling out was because of red tape, political meddling, inaccurate minutes and attempted tax evasions.

Jafza executive chairman Sultan Ahmed Sulayem and its senior vice-president (international operations), Chuck Heath, had written to Transport Minister Datuk Seri Chan Kong Choy on March 11 and May 29 last year, respectively, complaining about the difficulties working with the PKA, but did not receive any reply.
In the letter, Heath alleged that the PKA had also overruled many areas of its responsibilities.

He also complained that transparency was non existent and the Malaysian political and economic landscape has too many vested interests seeking involvement and control in this project.

Later former Prime Minister Datuk Seri Abdullah Ahmad Badawi said he had to get a report from Chan before commenting on the matter.

At the post Cabinet press conference , Chan said the issue was discussed in the Cabinet meeting and a statement on this will be issued soon.

One week later the Transport Ministry issued this statement on Port Klang Free Zone

The Port Klang Free Zone (PKFZ) management is confident of reaching 80% occupancy by 2012.
General manager (business development) Chia Kon Leong said this would mean attracting 650 to 700 companies to invest in the 404ha PKFZ.

In 2010, PKFZ is expecting a total revenue of RM40mil and it would be a self-sustaining company by then,” he said.

The Transport Ministry, in a statement, gave an assurance that PKFZ was an important national project and that the Government has agreed to provide a soft loan to PKA. The details are still being discussed.

PKFZ has received Government support as it will increase the cargo volume at Port Klang – the national maritime gateway – generate economic growth, create job opportunities and encourage supporting services, it said.

The statement added that the Government respected Jafza International’s change of policy and its decision to pull out of the agreement to manage PKFZ.
“Jafza withdrawal was due to its new policy to hold equity in the free zones it manages,” said the statement.

No hanky panky in PKFZ, says Chan. No hanky panky ?

Later in the week Transport Minister Datuk Seri Chan Kong Choy came out to deny allegations that the Port Klang Free Zone (PKFZ) project is a failure.

In a written answer to Lim Kit Siang (DAP-Ipoh Timur) in the Dewan Rakyat (Parliament), he said despite the PKFZ having only begun operations last Nov 1, it had attracted 30 investors with investments totaling about RM725 million and offering 809 jobs.

There is no hanky panky involved in the implementation of PKFZ. This project was approved by the government, he said.

Lim had asked why the problems and cost overrun involving billions of ringgit were not monitored despite warnings from the Attorney-General’s Chambers and whether there is any bailout of the RM4.6 billion spent on the project.

Chan said the project was divided into two portions – land acquisition and infrastructure development.

He said the land acquisition cost was RM1.088 billion and with the deferred payment period of 15 years at an interest rate of 7.5%, the cost would amount to RM1.807 billion.

This cost also involves initial work carried out, such as land reclamation, drainage, roads, bridges and other utility infrastructures,” he said
He also mentioned that the development of infrastructure facility involved a cost of RM1.845 billion covering construction of office buildings, light industrial units and other interior infrastructure construction.

Thus, the overall cost of the PKFZ, taking into account the land acquisition and cost of infrastructure development, interest cost of 7.5%, deferred payment, 10% professional fee and work changes limited to 20%, the cost amounted to RM4.632 billion,” he said.

Ex-transport minister Chan before PAC on PKFZ




RM4.6 billion PKFZ scandal - Chan Kong Choy still Minister of Transport



See What Lim Kit Siang has to say regarding Minister on the Run .

Chan and the Sentul to Batu Caves DRT

Lets start with the Sentul-Batu Caves Double Rail Track way back in April 2006











Lim Kit Siang says Chan Kong Choy should apologise for the grave parliamentary misdemeanor of misleading the Prime Minister Datuk Seri Abdullah Ahmad Badawi by giving a baseless and empty response to his queries in Parliament

Kit Siang had sought clarification from PM Abdullah during his winding up when he was speaking about efficient and accountable public service delivery and implementation of the Ninth Malaysia Plan, referring him to the incident in Parliament when a Cabinet Minister claimed total ignorance on a project which should come under his jurisdiction.

When Chan was winding up the debate on the Transport Ministry, Kit Siang had asked why the Sentul Batu Caves Double Rail Track project had ballooned to RM650 million or 55% higher than the RM420 million bid agreed three years ago before the project was suspended.

Chan was quizzed on why the 7.5 km Sentul to Batu Caves high speed line is now costing RM650 million, when independent valuers already found the RM420 million price agreed for the project in 2003 before it was suspended as too high as there were parties willing to do it for even less than RM350 million.
At the price of RM650 million, the Sentul to Batu Caves Double Track will work out to about RM90 million per kilometer, more than four times higher than the cost of the Ipoh to Rawang Double Track project which cost approximately RM20 million per kilometer which is regarded as quite expensive at that time.

At first Kong Choy prevaricated by giving vague and general reasons for the 55% jump of the price of the project from RM420 million to RM650 million in a matter of three years, attributing it to price increases in materials and expertise and their sourcing from Europe.

But then when he Chan Kong Choy was asked why there was no open tender and who was the new contractor who had been awarded the RM650 million contract, Chan decided to “pass the buck”, claiming that he did not have all the information, that he had to refer to the Finance Ministry which was responsible for the project.

When one opposition member protested that it was outrageous that the Transport Minister did not know or could not tell who was the successful contractor for the RM650 million Sentul to Batu Caves Double Track project, Chan promised to check with the Finance Ministry and to give a written answer.

When no answer was forth coming from Chan 24 hours later , Kit Siang stood up to raise the issue with the Prime Minister during his winding up debate of the Ninth Malaysia Plan . On seeing that Chan quickly scribbled a note advising the Prime Minister that he (Chan) had answered KS query , which was not true.

Until today as to who is the contractor awarded the RM650 million Sentul-Batu Caves Double Rail Track project and the full reasons for the 55% hike in the cost of Sentul to Batu Caves Double Rail Track from RM420 million to RM650 million in a matter of three years , no one knows , why the secrecy ?

On the Misuse of DCA aircraft

Chan was also guilty of a similar “sleight-of-hand” in Parliament during the winding-up of the Motion of Thanks for the Royal Address in March. During the debate on the Royal Address, both the DAP MP for Bagan, Lim Hock Seng and Kit Siang had queried Chan on his misuse of Department of Civil Aviation (DCA) aircrafts to various parts of the country for MCA party functions. I called on him to present to Parliament the full log book of his use of DCA aircrafts since his appointment as Transport Minister and the purpose of each trip.

Keeping the subject to the very end of his speech, Chan just made a denial saying that the DCA had conducted a detailed investigation which found that there was no such abuses by the Minister and suddenly sat down and refused to budge despite protests by several DAP MPs that the answer about the Minister’s misuse of DCA aircraft was very unsatisfactory . Chan just sat transfixed in his seat, indicating that he had finished his speech and had nothing more to add!

In conclusion on these two issues , it goes to show that the previous Transport Minister had been misleading the public and had skeletons hidden in his closet by not revealing the contractor for the Sentul to Batu Caves double tracking project and the gross misuse and abuse of power for treating the DCA aircraft like his own personal aircraft .