KUALA LUMPUR, Shazwan Mustafa Kamal (The Malaysian Insider)
Nov 2 — PAS claimed that the default by a government tuna port venture of a RM240 million bond which was issued based on an endorsement letter from the Agriculture Ministry in 2006 was another Port Klang Free Zone (PKFZ) in the making.
PAS MP Dr Dzulkefly Ahmad said that the management of Malaysian International Tuna Port Sdn Bhd (MITP) by the Fisheries Development Authority of Malaysia (LKIM), which had been highlighted in the 2009 Auditor-General’s report, would prove to be another liability to the federal government where the government would have to bear the costs for the failure of the venture.
“LKIM had issued a letter of undertaking which states that concession agreements will be enforced should there be an ‘event of default’ on the part of MITP,” Dzulkefly told reporters today.
The RM240 million government letter of support-backed bond issued by MITP, which defaulted late last year, is currently the subject of legal action.
MITP, 40 per cent owned by the LKIM, defaulted on payments last November.
Pakatan Rakyat (PR) lawmakers have labelled it another classic case of the standard practice of the Barisan Nasional (BN) government, where support letters were given to companies with “zero financial history”..Read More