Port Klang Free Zone originally could swell to RM 7.5 – RM 12.5 billion (originally estimated to cost RM 1.9 million)

MACC begins PKFZ probe

It is learnt that the report, which has yet to be made public, detailed cost overruns amounting to billions of ringgit and a trail of improper and poor decisions during the development of the PKFZ. 

The PKFZ project was for a cluster of offices and light industrial buildings in the port area, originally estimated to cost RM1.9bil.

However, sources said the report stated that the project cost would swell to RM7.5bil, partly due to interest costs over a 20-year period.

Sources said one of the recommendations was for the PKA to restructure a RM4.6bil soft loan from the Finance Ministry to avoid a potential default in 2012.

The cost would expand further to RM12.5bil if the loan from the Finance Ministry were rescheduled to match PKA’s projected cash flows, the sources said.

They added that PKA’s options included loan rescheduling, government grant and privatisation.

The sources also said there were PKFZ development proposals which were not tabled to the Cabinet for approval.

They also said development contracts totalling RM1.8bil were awarded to a company called Kuala Dimensi Sdn Bhd without competitive bids.

Read:

The Port Klang Free Zone scandal

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Posted in BN government, jijik, kosong, [s]Port Klang Free Zone

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