Malaysia picks anti-graft head for port project-source

Wed Jun 10, 2009 2:40pm IST

KUALA LUMPUR (Reuters) - Malaysia will appoint the country head of a global anti-graft body to oversee a scandal-plagued free trade zone, a source said on Wednesday, as the government moves to tackle allegations of corruption that have eroded its popularity.

Paul Low, president of the Malaysian chapter of Transparency International, will be appointed to lead a panel to oversee the revival of the Port Klang Free Trade Zone (PKFZ), said the source who is familiar with the matter.

“The appointment aims to show the government’s determination to move away from the rent-seeking culture in a country still entrenched in political patronage,” said the source, who spoke on condition of anonymity.

Prime Minister Najib Razak’s government has been hit by accusations of cronyism involving the project at Malaysia’s main port near the capital of Kuala Lumpur. The uproar comes as the ruling coalition is seeking to boost support after a disastrous showing in national and state elections in 2008.

The PKFZ, which covers 1,000 acres, was conceived as a 1.8 billion ringgit ($512.2 million) joint venture between the Port Klang Authority (PKA) and Dubai’s Jebel Ali Free Trade Zone.

Jebel Ali later withdrew from the project after disagreements with the promoter.

A report from auditors PricewaterhouseCoopers released on May 28 showed the project’s cost may ultimately spiral to as much as 12.45 billion ringgit, six times the original estimate.

Transport Minister Ong Tee Keat is expected to announce the appointment at 0900 GMT on Wednesday, the source said.

Source: Reuters India