The much awaited Port Klang Free Zone (PKFZ) independent auditing report is not likely to be released this week.

According to Port Klang Authority (PKA) chairperson Lee Hwa Beng, an international legal firm had just been appointed to advice the government agency on the indemnity issue.

"The Skrine & Co legal firm was appointed on Monday. It will get back to us the earliest by the end of this week," said Lee when contacted by Malaysiakini today.

port klang free zone pkfz audit PricewaterhouseCoopers (PWC), which was commissioned by PKA to prepare the audit report, is seeking indemnity from the port authority because the public release of the report may result in lawsuits from parties who claimed defamation.

As such, PKA had appointed Skrine & Co to provide legal opinion on the issuance of a letter of indemnity to PWC.

Transport Minister Ong Tee Keat had earlier instructed Lee to release the report by May 6 but this was delayed due to a number of 'technical issues'.

Already a number of BN politicians who are expected to be named in the report are said to be seeking legal opinion on the matter and are considering filing lawsuits.

Boss instructed me to bare all

It is learnt that some quarters have even pressed for the Official Secrets Act to be invoked against the media, which had recently leaked certain parts of the report.

There were also efforts made by the parties involved to influence editors, especially those in charge of business section, to play down the report should it be released.

cairo trip controversy 210105 lee hwa beng Despite the pressure, Lee, a former MCA state assemblyperson, appeared determine to reveal all.

"As far as I am concerned, the indemnity letter is ready," said Lee, adding that PKA is only waiting for clearance from the legal firm.

Asked if there could be a compromise between PWC and PKA which could lead to selective disclosure of the report, Lee stressed that the instruction given by his boss was to release the full report.

"The instruction by the minister is to release the report in its entirety, including declassified documents."

Cabinet discussed issue today

According to Ong, the cabinet at its weekly meeting today had discussed the report. This is a follow-up to its first meeting on the issue last week.

port klang free zone pkfz white elephant cost overruns 200509 "The cabinet members were given the opportunity to study the report in greater detail," revealed by Ong in his blog today.

The MCA president remains consistent in his stand to make the report public.

"I understand that PKA has managed to resolve several technical issues with PwC to release the report, including the issue of indemnity.

"I remain committed to the policy of transparency and openness because this is what a 'People First, Performance Now' government should be. The people not only have the right to know but should be assured that the government is acting in their best interest.

"I am confident that my cabinet colleagues share the same vision and aspirations," he added.

Board to discuss GM's resignation

In another related development, Lee confirmed he had received the resignation letter from PKA general manager and PKFZ chief executive officer Lim Thean Shiang.

"PKA board will consider his letter of resignation at tomorrow’s meeting," he said, declining to comment whether Lim's resignation is related to the audit report.

Lim, 37, was appointed by Ong last April on a two-year contract. Many saw his appointment as a move by the transport minister to clean up PKFZ and revive the ailing PKA.

PKFZ began as a RM1.8 billion free-trade zone project in Port Klang in 2002 but has since saw the cost ballooned to RM4.6 billion. Recent reports have estimated losses up to RM12 billion.

The project has been mired with serious conflict-of-interest breaches between top officials of the port authority supervising the project and executives of private companies who are also key politicians in the ruling BN government.

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