Malaysia PM pledges no cover up in port scandal

By Royce Cheah

KUALA LUMPUR (Reuters) - Malaysia's government said on Wednesday it would prosecute any wrongdoing in a state-backed multi-billion dollar port project that has been dogged by accusations of mismanagement and cronyism.

Prime Minister Najib Razak said the government would look at a report by a parliamentary committee urging it to investigate a former transport minister and other officials in connection with the port scandal.

The report by the Public Accounts Committee came as Najib is under scrutiny over whether he will deliver on pledges to root out corruption in government and his own party to boost investment and its appeal to voters.

"We will consider the report and I have said that we won't cover up any weakness or wrongdoing or whatever else that violates the law," Najib told reporters in parliament.

What started off as a 1.8 billion ringgit ($524.9 million) free trade zone at Malaysia's largest port, Port Klang, has ballooned into a more than 10 billion ringgit project following an acrimonious pullout by the project's Dubai-based partner.

The Port Klang Free Trade Zone, which started as a joint venture between the port near the capital of Kuala Lumpur and Dubai's Jebel Ali Free Trade Zone, had aimed to boost investment, but ended up drawing accusations of cronyism against the government.

The site covers 1,000 acres (405 hectares) and is located approximately an hour by road from the capital.

The report said former transport minister Chan Kong Choy should be investigated by the Malaysian Anti-Corruption Commission and police for criminal breach of trust.