PETALING JAYA: The public disclosure of the report on the controversial Port Klang Free Zone (PKFZ) faces another hurdle.

The board of the Port Klang Authority (PKA) is now seeking legal opinion on the letter of indemnity that accounting firm PricewaterhouseCoopers (PwC) seeks before the report on the PKFZ project can be made public. PwC, commissioned by the PKA, prepared a report on how the cost of the PKFZ project estimated at less than RM2.5 billion initially, ballooned to more than RM4.6 billion.  

PKA chairman Datuk Lee Hwa Beng when contacted yesterday said that the board of directors was not comfortable with the issuance of a letter of indemnity to PwC and hence has appointed Skrine & Co for a second legal opinion on the matter.

“If PwC is sued by a third party, then PKA will have to compensate PwC in full,” said Lee when explaining the effect of the letter of indemnity.

He said PKA wanted to release the report as soon as possible and that was why he had sent a circular for the board of directors to sign to facilitate the issuance of the letter of indemnity last week.

However, two directors had  refused to sign the circular, resulting in Lee calling for an emergency board meeting yesterday. The board in its meeting decided to refer the matter to Skrine & Co.

“We hope to get the opinion by next week. If the legal opinion is alright (meaning PKA is protected), then there is no need to call for another board of directors meeting. If the opinion is not OK, then the board will have to meet and decide on the matter again,” he said.