Bintulu Member of Parliament Datuk Seri Tiong King Sing owned company Wijaya Baru is currently at the center of the controversial Port Klang Free Trade Zone (PKFZ) project. PKFZ initially estimated to cost RM1.957 ballooned to RM7.453 billion once completed.
PricewaterhouseCooper (PWC) in its audit report projected PKFZ cost would further increase to RM12.453 billion if Port Klang Authority fails to restructure its debts.Via Bernama:
It said the principal activities of KDSB, a wholly-owned subsidiary of Wijaya Baru Holdings Sdn Bhd (WBHSB), are construction and property development.
WBHSB and its group of companies are involved in land and sea reclamation, construction, dredging, property developemnt and marine transport activities.
As of Jan 16, 2009, the shareholders of WBHSB comprised Datuk Seri Tiong King Sing holding a 70 percent equity, Idris Mat Jani (10 percent) and Omar Abdul Latip (20 percent).
The directors of KDSB are Datuk Seri Tiong, Idris, Omar and Datuk Seri Abdul Azim Mohd Zabidi.
PwC also noted that a number of parties with prior association to either the land or KDSB which may give rise to potential conflicts of interests.
It said that Datuk Abdul Rahman, who was a member of the board from 1997 to 2003, declared his position at one meeting as president of Koperasi Pembangunan Pulau Lumut Bhd which was the original owner of the land.
Another person was Datuk Chor Chee Heung, who was non-executive deputy chairman of Wijaya Baru Global Bhd (WBGB) from April 2004 to July 2007 and chairman of PKA from April 2007 to March 2008.
In February 2008, the final account for the DA3 (Development Agreement 3) of RM1.216 billion was approved by the board.
KDSB carried out the construction works under the DA3 between July 2004 and November 2006, during which time Chor was the non-executive chairman of WBGB.
Minutes of the board did not indicate that Chor either declared his previous involvement in WBGB to the board or withdrew himself from the deliberations.
WBGB and KDSB are related through a common shareholder and director.
WBGB and the parent company of KDSB, Wijaya Baru Holdings Sdn Bhd, share a common shareholder and is the main contractor of KDSB for the project.
Meanwhile, Transport Minister Datuk Seri Ong Tee Keat who have been under pressure from opposition parties to release the PKFZ report by PWC reported to have seeking legal action.
He ordered Port Klang Authority to seek legal recourse for any contractual shortcomings or irregularities revealed by the report on the Port Klang Free Zone which has been made public.
Tee Keat also directed authority chairman Datuk Lee Hwa Beng to submit a copy of the report to the Malaysian Anti-Corruption Commission and the Public Accounts Committee.