PKFZ Ghost Continues to Haunt the Nation

By Khoo Kay Peng

PKA claims that PKFZ has been in operation for the last few years and it is obligated to repay its bondholders.

The ministry said the government had taken all relevant factors including the government's commitment to bondholders and PKA's obligations under the agreements signed.

PKA had also given an undertaking to make payment to the special purpose vehicles, said the ministry.

It was learnt that the PKA had reservations over making the payment in view of its on-going RM1.4 billion suit against KDSB.

A source from the port authority said they are considering withholding the payment as the board would be held liable for monies that cannot be recovered from KDSB in the event that the PKA wins the suit.

Nearly RM3 billion is also owed to three other SPVs – Transshipment Megahub Bhd, Valid Ventures Bhd and Special Port Vehicle Bhd.

A sum of RM1.3 billion is scheduled to be paid to Valid Ventures next year, while a RM1.4 billion payout is due to Transshipment Megahub in 2012 and RM150 million is owed to Special Port Vehicle Bhd.

PKFZ will continue to churn out more bad news, more financial commitments and more losses in the following months and years. What has PKFZ achieved in real economic terms?

Who is accountable for this silly project which was started with a bad intention in the first place?

PKFZ is a mirror of the current economic structure. It was a wrong strategy and a bad call. How many developed economies are still doing what we have done? Building industrial parks or logistics hub and hoping for them to be filled up is a wrong move. We should have focused on promoting and catalysing real industrial development and not seeking rentals.

In the PKFZ case, one size does not fit all. Most companies prefer to build facilities based on their own business needs and not taking up some ready made facilities.

Is the government going to be accountable to ensure that this project can become viable in the near future and not continue to drain public funds?

The government needs to do some serious thinking here. It has to be decisive enough to decide what to do with the PKFZ. Money wasted on this project can be used to create jobs elsewhere.

I heard that some real culprits are still left to enjoy their spoils. Why the inaction?