PKFZ: Chan Kong Choy charged with cheating

STAR, 28 February 2011


PUTRAJAYA: Former Transport Minister Tan Sri Chan Kong Choy claimed trial to three counts of cheating over the Port Klang Free Zone (PKFZ) scandal.

Chan is the second VVIP to be charged over the scandal-ridden project after his predecessor Tun Dr Ling Liong Sik was charged on July 29, 2010 with cheating over the same project.

Chan getting a hug from his wife Puan Sri Anne Chan outside the courtroom Monday

On the first count under Section 417 of the Penal Code, Chan is charged with deceiving then Prime Minister Datuk Seri Abdullah Ahmad Badawi at his office here between Feb 24 and 25 in 2004 into agreeing to approve Kuala Dimensi Sdn Bhd as the turnkey developer of the Transshipment Hub project at the Pulau Indah Free Zone at an estimated cost of RM1bil.

He is said to have dishonestly concealed the fact that the development cost would be financed through Kuala Dimensi’s issuance of bonds through Transshipment Megahub Bhd, with the support of the government and the Transport Ministry.

On the second count, he is charged with cheating Abdullah, also at the Prime Minister’s office here between Oct 11 and 28, in 2005 by deceiving the latter into approving Kuala Dimensi as the turnkey developer to carry out additional development works at PKFZ.

The works are the upgrading of road junction to the zone amounting to RM285.38mil, electrical infrastructure works amounting to RM135mil and construction of a business class hotel at RM90mil.

He is said to have concealed that the financing of the works would involve Kuala Dimensi’s issuance of bonds through Valid Ventures Bhd, with the support of the government and the Transport Ministry.

On the third count, he is charged with cheating Abdullah at the Prime Minister’s office here between March 28 and 29 in 2006 by deceiving him into approving Kuala Dimensi as the turnkey developer to carry out additional development works at PKFZ.

The works are concrete trenching works for electrical cable amounting to RM140mil, works for 33Kv of electricity supply to precincts 2 and 8 amounting to RM80mil, PMU infrastructure works amounting to RM30mil and the construction of a road linking PKFZ to West Port amounting to RM28.1mil and another road linking the main entrance of PKFZ to Cargo Terminal 4 at RM57.5mil.

He is said to have concealed that the works would be financed by Kuala Dimensi’s issuance of bonds through Free Zone Capital Bhd, with the support of the government and the Transport Ministry.

Each count carries a maximum jail term of five-years, a fine or both is convicted.

Attorney-General Tan Sri Abdul Gani Patail, who is heading the prosecution, asked the court to set a date a month later for mention the case so that both sides could exchange documents and identify various issues pertaining to the case.

He said the prosecution also wanted time to hold a pre-trial conference with the defence to ensure that no unnecessary issues or facts were raised during the trial later.

He also said that both parties had agreed to have the bail set at RM1mil.

Gani is aided by Deputy Public Prosecutors Dzulkifli Ahmad and Manoj Kurup while Chan is represented by Arthur Wang, Badrul Munir Bukhari and Azad Bashir.

Azhaniz Teh set bail at RM1mil and set March 31 for mention of the case.