KUALA LUMPUR: Former transport minister Datuk Seri Ong Tee Keat’s pursuit of the Port Klang Free Zone (PKFZ) issue had given rise to speculation that it would be costly for him politically, but Ong remains committed to the cause.

The Edge Financial Daily caught up with the Pandan Member of Parliament and former MCA president recently for his thoughts.

TEFD: Any regrets on pursuing the PKFZ issue? What are your thoughts now that you are out of the government? Do you think the government needs to waive the RM4.6 billion loan to Port Klang Authority (PKA)?

Ong Tee Keat: I remain committed to pursuing what is deemed right by the public.
Even in my parliamentary questions last year and even until this year, I did not forget my commitment. As for the previous session, several questions were raised but unfortunately the questions were turned down on the grounds that the matter was subjudice [because the courtcase had begun]. As for the question on turnaround plans for PKFZ or the progress of the super task force, the only brief reply I got was that it is still ongoing, but without further elaboration.

On the Finance Ministry loan, I can remember that even before I left the Cabinet, there was an open-ended requisition from PKA for re-scheduling of loan and lowering of interest. On the lowering of the interest rate from 4% to 2%, we all know very well that if nothing is being done to re-schedule the loan, you cannot turn around and service it. (Note: If nothing is done by 2051 the total amount of loan repayable may balloon to some RM12.5 billion.)

Before you left the Cabinet, you put in a letter to MOF to ask (for the rescheduling).
I did. I remember more than twice. I remember the relevant touch points, the major concerns that we need to address. At the same time, the main issue bothering me is the turnaround (of PKFZ).

But now with the new PKA chairman and minister, it is their baby. But as a wakil rakyat, I am still interested to know what happened to the legal cases. I want to see justice prevail.

At the same time, since it was reported that there was the element of fraudulent claims amounting to RM1.64 billion with substantiated evidence, my concern is that it is public money. How are we going to recover money being paid. Some (of the money) might have been paid, some might not. Say the portion that has been paid, how are we going to recover that? I think it is a fair question.

Another area, remember the bonds? I am merely interested in the interest rate of the bonds because there was an abrupt jump from 5% to 7.5%. Initially even 5% was deemed on the high side because of the AAA rating. The market rate then was at most 4%. I could not see the link between the jump and what had transpired and the interest escalating to 7.5%. We need to have an answer to that.

How much of rescheduling of the loan is needed or should be waived altogether?
Waiver did not come into the picture.

You did not ask for a waiver?
No. If at all that were to be raised then people would say it’s a bailout. During my tenure, I had never raised that because I don’t like to go for bailouts,  but at least there must be some kind of turnaround.

There must be some kind of rescheduling of the loan. The interest rate could be lower than 4%. That was all I asked.

When I was called up by the Public Accounts Committee, I said it is economically relevant to have such a free zone adjacent to Port Klang but whether or not the regulator should run the business is another matter. PKA is the regulator and I always insisted on the separation of jurisdiction between the regulator and operator.

So if there is an interested third party for PKFZ, PKA should be looking at selling it?
I don’t know. As an elected representative I would like to see PKA separate self from PKFZ. With respect to PKA, let the business players do it.

This article appeared in The Edge Financial Daily, April 11, 2011.