KLANG (Aug 18, 2009) : Bukit Aman's commercial crime department has started an investigation into alleged irregularities of up to RM1 billion over the Port Klang Free Zone project following a report lodged by the Port Klang Authority against PKFZ turnkey developer Kuala Dimensi Sdn Bhd (KDSB) and its consultant BTA Architect.

A team of up to five officers also took statements from an undisclosed number of PKA employees yesterday. Each of these visits lasted the whole day.

Lee, who chaired a second board meeting on the special task force report on the PKFZ scandal yesterday, declined to say transpired in these sessions but he was happy that police acted swiftly on their report lodged last week at the Klang police headquarters.

That report was based on the findings of the special task force that was set up to identify weaknesses in the PKFZ and come up with recommendations, together with two other committees.

On whether the PKA will also lodge a report with the Malaysian Anti-Corruption Commission (MACC) based on the task force report, Lee said the board will has yet to decide on this.

He however noted that a report had been lodged to the commission when the PricewaterhouseCoopers report was released in May and since then it had visited PKA a few times.

Asked if the MACC had requested for a copy of the seven-volume task force report, he said the board is still going through it and it will not be declassified to the public, including the MACC, for now. He said going through the report is a tedious process and will take time.

Today's board meeting lasted seven hours.

At the end of it, Lee issued a statement saying the board members deliberated on recommendations in relation to possible fraud, negligence, wrongdoings and irregularities, as well as the issue of unenforceability of certain agreements.

He said they decided to take follow-up actions on decisions made yesterday and seek further advice on certain issues. Announcements are expected soon.

The board was also briefed on Lee's status as chairman following the allegation by KDSB deputy CEO Datuk Faizal Abdullah that Lee's tenure is null and void as his appointment was not valid.

Lee said the board members agree that the discharge of his duties is regular and due process has been followed.

It was reported that MACC had questioned KDSB chief executive officer Datuk Seri Tiong King Sing last week but no details were given on the interview.

Asked why the turnkey developer's opinion was not sought by the special task force when preparing the report as claimed by KDSB, Lee explained that the special task force had written to KDSB but the latter had failed to reply.

"We cannot give a copy of the report to KDSB because the report is made only for the PKA and whatever revealed so far was decided by the board," he said.