Lee: Most decisions on PKFZ made by MOT, MOF and cabinet

Former Port Klang Authority (PKA) chairperson Lee Hwa Beng agreed with OC Phang's lawyer that most of the decisions regarding the controversial Port Klang Free Zone project were made by the Transport Ministry (MOT) and Finance Ministry (MOF).

Lee also agreed with lawyer Matthew Thomas Philip, for Phang, that Kuala Dimensi Sdn Bhd had made the initial offer in 1999 to the MOT and not PKA.

He said the government was interested in building a mega transhipment hub in the model of Jebel Ali in Dubai.

PKA is suing Phang for breach of fiduciary duty.

Lee, who was PKA chairperson from 2008 to 2011, said during cross-examination that the offer came from KDSB, that offered a 830 acre land (332 ha land) next to Westport in Port Klang and he agreed that the location of the land was important.

Matthew: The letter dated 1999 by KDSB is not addressed to the defendant (Phang) and also not the plaintiff (PKA)?

Lee: Yes, it is to the ministry.

Matthew: The correspondence is between KDSB and MOT?

Lee: Based on the letter to the Transport Ministry's deputy secretary-general, yes.

The former PKA chairperson agreed that the KDSB offered the sale of the land and also offered to build basic infrastructure like electricity and water.

The witness however, said that he was not aware that the cabinet had taken notice of the offer from the private sector, as the offer to MOT was made sometime in February 1999.

Matthew: Was there any discussion between the plaintiff or defendant on this offer?

Lee: I cannot recollect.

Matthew: Did you ask the Transport Ministry deputy secretary-general Abdul Rahman Mohd Noor? (Abdul Rahman was also the MOT's representative in PKA)

Lee: I never went to see him.

Matthew: But the MOT wants this project and the ministry's representative said even if PKA does not have the funds, there is a suggestion of getting a grant (to finance it)?

Lee: Grant from the government. Yes

KDSB approached PM

Sometime on April 26 1999, KDSB wote to then Prime Minister (Dr Mahathir Mohamad) and subsequently there was a meeting between MOF, Economic Planning Unit and PKA where they made the offer of land.

Lee agreed to Matthew's suggestion that the offer has escalated from KDSB as a letter was directly sent to the PM.

Matthew: Are you aware of the letter written by KDSB on Sept 9, 1999 to PM complaining there is no progress. This is a follow-up letter dared April 26, as KDSB was informed the cabinet agreed to buy the land and a discussion on the price was made but there was no progress. In this instance KDSB claims of sabotage to the deal so KDSB is directly pursuing this with the PM?

Lee: Yes.

The witness also cannot recollect that the offer for deferred payment following PKA's financial position did not came from Phang, as there is an ongoing discussion between the MOF's Valuation Department and MOT.

Lee, however, agreed that the offer of RM25 per square foot at special value came from the MOT and not from Phang.

He further agreed that there was continuous discussion between KDSB and MOT sometime in 2000 for the purchase of additional land and this was done without Phang's involvement.

However, the former PKA chairperson said he was not privy to the discussion on the matter as he was not in the PKA board and was only appointed chairperson in 2008.

Asked about the book he wrote titled "PKFZ : A Nation's Trust Betrayed", Lee said he had suggested action be taken against the previous board members in PKA, besides Phang.

“However all the board members at that time overruled me. When I was chairperson I propose a resolution that all board members be charged. This was written in my book and I still stand by what is written in there,” he said, adding that he was appointed during Ong Tee Keat's time as Transport Minister, and was removed by PKA chairperson Kong Cho Ha.- Mkini