PKFZ Scandal: Chan Kong Choy charged

February 28, 2011

PKFZ Scandal: Former Transport Minister charged

by Hazlan Zakaria

Former transport minister Chan Kong Choy was slapped with three charges of cheating in a sessions court in Putrajaya today, in relation to the Port Klang Free Zone scandal.

The charges were brought under Section 417 of the Penal Code. He has been released on bail of RM1 million with one surety. The case is set for mention on March 31. Chan faces a maximum five-year jail term, a fine or both, if found guilty.

The first charge is that he deceived then premier Abdullah Ahmad Badawi into approving Kuala Dimensi Sdn Bhd (KDSB) as the turnkey developer for a trans-shipment hub project at the Pulau Indah Free Zone (as it was then called).

According to the charge sheet, Chan is accused of concealing the fact that the development cost would be borne by KDCB, which was to issue bonds through Transshipment Megahub Bhd with the support of the government and the Transport Ministry.

He is alleged to have induced Abdullah into giving approval because the latter would not have agreed if the facts had been disclosed to him.

This offence was allegedly committed between Feb 24 and 25, 2004, at the fourth floor of the Prime Ministers Office.

The second charge is that Chan deceived Abdullah into approving KDSB as the turnkey developer to carry out three pieces of additional development work amounting to RM518.38 million. This offence was allegedly committed between Oct 11 and Oct 28, 20! 05, at t he same place.

The third charge is that Chan deceived Abdullah into approving KDSB as the turnkey developer to carry out five pieces of additional development work amounting to RM335.8 million.This offence was allegedly committed between March 28 and 29, 2006, in the same location.

On the second and third charges, Chan is accused of concealing the fact that the development cost would be borne by KDSB through two special purpose vehicles supported by the government and the Transport Ministry, on the basis that Abdullah would have not granted approval had he been aware of this.

Pre-trial conference

Chan was taken into the courthouse by police at 2pm. He was accompanied by his wife and daughter.Dressed in grey pants and a white shirt, he appeared calm and jovial.

A police personnel stationed in the court room made a slight issue over the attire of Chans daughter. This is my daughter, Chan told the police personnel, who relented and allowed his daughter to enter the courtroom on condition that she sat in the back row.

Attorney-General (A-G) Abdul Gani Patail arrived 10 minutes before Chan and is expected to lead the prosecution team.

Chan was represented by three lawyers, led by Azad Bashir. Speaking to reporters later, Chan refused to speculate his chance of mounting successful defence. The charges came as a surprise to me but I am confident of the judicial system. I hope I can clear my name, said Chan.

After the charge was read, the A-G said both parties had agreed that the bail be set at RM1 million. Gani asked for a later trial date to enable the prosecution to prepare its case. He also proposed a pre-trial conference between the prosecution and defence.

Judge Azhaniz Ateh Azman agreed to the bail amount and set March 31 for mention. Chan is the second VVIP charged in connection with the PKFZ scandal, which has been plagued by massive cost overruns and which, according to an audit report, ! could po tentially cost taxpayers a whopping RM12.5 billion.

In July 29 last year, former transport minister Dr Ling Liong Sik was charged with misleading the cabinet into approving a land deal at an inflated price. Four others, including former PKFZ general-manager OC Phang, have been charged with various offences for their alleged involvement in the project.


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