PETALING JAYA: Port Klang Authority’s (PKA) general manager Lim Thian Shiang, who also oversees the management of the controversial Port Klang Free Zone (PKFZ), has resigned, sources said.

Lim’s resignation comes in the midst of the PKA making final preparations to release a detailed report on the controversial PKFZ project.

A lawyer by training, Lim took over from Datin Paduka OC Phang in June last year. He is said to have tendered his resignation letter but this is subject to acceptance by the PKA board of directors which will meet tomorrow.

According to sources, Lim was said to have a falling out with Transport Minister Datuk Seri Ong Tee Keat on several issues, including some that are related to PKFZ.

“A few weeks ago PKFZ gave a briefing to Barisan Nasional (BN) backbenchers on the project. It is said that the briefing was held without approval from the higher-ups. There were also several other instances which have caused some differences in opinion between Lim and ministry officials,” said the source.

Lim came into PKA at the tail-end of its implementation of the RM4.6 billion PKFZ project. Apart from being the general manager of PKA, he was also the executive chairman of PKFZ and entrusted with facilitating the viability of the transshipment hub project.   

The project, which initially was supposed to cost less than RM2.5 billion, ended up costing the PKA some RM4.6 billion including interest. Because PKA did not have the financial resources to undertake the project, it received a government soft loan of RM4.6 billion to redeem bonds that go on until 2017.

Ong had ordered an audit on the controversial PKFZ after assuming office last March and on April 29 this year. After much delays due to the declassification of certain documents that required the consent of the Ministry of Finance, the report finally received clearance to be made public.

However, PKA has yet to release the report because PricewaterhouseCoopers, the accounting firm that prepared the report, has asked for a letter of indemnity to protect itself from any lawsuits. PKA has since engaged law firm Skrine & Co to provide it with a second opinion on the matter.

The report is expected to be released later this week.

This article appeared in The Edge Financial Daily, May 20, 2009.