PKFZ: Green light for indemnity letter
May 21, 09 12:28pm
The Port Klang Authority (PKA) has been given the green light to issue a letter to PricewaterhouseCoopers indemnifying the international audit firm from potential law suits over its report on the controversial Port Klang Free Zone (PKFZ).
MCPX
PKA chairperson Lee Hwa Beng (left) said that the port authority had been advised by legal firm Skrine & Co that an indemnity letter can been issued to PwC.
"We can now issue a letter of indemnity to PwC anytime," said Lee.
But he stressed that PKA had been advised by lawyers that the letter of indemnity would not fully protect the audit firm.
According to Lee, the port authority can still counter sue PwC if the PKFZ audit report contains false information leading to the port authority being sued by third parties linked to the multi-billion ringgit scandal.
The go-ahead from the lawyers had cleared a major hurdle for the port authority to release the much-delayed PKFZ report to the public.
Still waiting for more green light?
However, the port authority has yet to decide on whether to send to the indemnity letter as the issue on the release of the report is being discussed by the cabinet.
But when asked whether this PKA is now waiting the green light from cabinet on the release the report, Lee retorted, “I didn't say that.”
"I just said the issue has been brought up for discussion by our nation’s highest authority, which is cabinet."
Meanwhile, Lee said the PKA board meeting this morning has accepted the resignation of PKA general manager and PKFZ chief executive officer Lim Thean Shiang.
With the sudden resignation, Lee will step in as acting PKFZ non-executive chairman, while David Padman will temporarily take over Lim's general manager post.
According to Lee, the former PKFZ CEO had resigned due to personal reason. He also refused to comment whether Lim’s resignation was linked to the release of the controversial report.
"I cannot answer this question. You need to ask him."
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