'Sue us but no RM660 mil payment for now'
Published: Jun 30, 2009 7:25 AM | Updated: Jun 30, 2009 4:23 PM
The Port Klang Authority is ready to face litigations by withholding RM660 million due to Kuala Dimensi Sdn Bhd for the Port Klang Free Zone project.
The Port Klang Authority is ready to face litigations by withholding RM660 million due to Kuala Dimensi Sdn Bhd for the Port Klang Free Zone project.
PKA chairperson Lee Hwa Beng said the amount would not be paid to Kuala Dimensi until a full review has been done by a task force established on June 10.
The PKA was supposed to have paid RM660 million - alleged debts in the words of Lee - to Kuala Dimensi's Special Port Vehicle Bhd, Transhipment Megahub Bhd, Valid Ventures Bhd and Free Zone Capital Bhd in four parts this and next month.
"The PKA board has resolved, on the basis of preliminary and provisional views obtained, to withhold these payments pending the completion of the full review by the task force," said Lee in a statement today.
He added that the PKA was fully aware of potential legal suits by Kuala Dimensi over the non-payment of the amount owed.
"If this happens, PKA will defend these actions and will await the outcome of litigation, which will determine PKA's true liability," he said.
He stressed that the board was acting in the best interest of the PKA and not "due to pressure from any outside parties".
"The board's decision is also part of the efforts by the Transport Ministry to restructure PKFZ's financial position and seek appropriate legal remedies, including a legal review of some of the agreements it had signed in the past," he said.
RM1 billion paid to Kuala Dimensi
Lee also added that the recommendations made by the task force were expected to be submitted to PKA and Transport Minister Ong Tee Keat in August.
The task force was set up by the PKA under Ong's instructions to look into PKA' obligations and other related matters.
Lee declined to state further on the matter as "legal proceedings may be forthcoming".
An audit report by PricewaterhouseCoopers on the PKFZ project found that the development cost for the project may balloon up to RM12.5 billion from an initial cost of less than RM2 billion. However no one has been held responsible.
The audit report also revealed that Kuala Dimensi had so far received total payments of more than RM1 billion from PKA since 2007 for the PKFZ project.
DAP's Pua supports move
In a related development, DAP's publicity chief Tony Pua welcomed the decision by PKA to withhold the payment to Kuala Dimensi.
He added that the Ong must now "expedite investigations into the various wrong-doings, abuse of power, conflict of interest, criminal neglect as well as possible corruption in the handling and management of the PKFZ project".
Pua, who is the Petaling Jaya Utara MP, also said that Ong must make sure all parliamentarians received copies of the complete PKFZ audit report by PwC before the current parliamentary session ends on Thursday.
"The delay and failure of delivering these key and critical documents signals the reluctance of the government to reveal the truth to the public to ensure that the wrong-doers are duly punished," he said in a statement.
PKA chairperson Lee Hwa Beng said the amount would not be paid to Kuala Dimensi until a full review has been done by a task force established on June 10.
The PKA was supposed to have paid RM660 million - alleged debts in the words of Lee - to Kuala Dimensi's Special Port Vehicle Bhd, Transhipment Megahub Bhd, Valid Ventures Bhd and Free Zone Capital Bhd in four parts this and next month.
"The PKA board has resolved, on the basis of preliminary and provisional views obtained, to withhold these payments pending the completion of the full review by the task force," said Lee in a statement today.
He added that the PKA was fully aware of potential legal suits by Kuala Dimensi over the non-payment of the amount owed."If this happens, PKA will defend these actions and will await the outcome of litigation, which will determine PKA's true liability," he said.
He stressed that the board was acting in the best interest of the PKA and not "due to pressure from any outside parties".
"The board's decision is also part of the efforts by the Transport Ministry to restructure PKFZ's financial position and seek appropriate legal remedies, including a legal review of some of the agreements it had signed in the past," he said.
RM1 billion paid to Kuala Dimensi
Lee also added that the recommendations made by the task force were expected to be submitted to PKA and Transport Minister Ong Tee Keat in August.
The task force was set up by the PKA under Ong's instructions to look into PKA' obligations and other related matters.
Lee declined to state further on the matter as "legal proceedings may be forthcoming".
An audit report by PricewaterhouseCoopers on the PKFZ project found that the development cost for the project may balloon up to RM12.5 billion from an initial cost of less than RM2 billion. However no one has been held responsible.
The audit report also revealed that Kuala Dimensi had so far received total payments of more than RM1 billion from PKA since 2007 for the PKFZ project.
DAP's Pua supports move
In a related development, DAP's publicity chief Tony Pua welcomed the decision by PKA to withhold the payment to Kuala Dimensi.
He added that the Ong must now "expedite investigations into the various wrong-doings, abuse of power, conflict of interest, criminal neglect as well as possible corruption in the handling and management of the PKFZ project".
Pua, who is the Petaling Jaya Utara MP, also said that Ong must make sure all parliamentarians received copies of the complete PKFZ audit report by PwC before the current parliamentary session ends on Thursday.
"The delay and failure of delivering these key and critical documents signals the reluctance of the government to reveal the truth to the public to ensure that the wrong-doers are duly punished," he said in a statement.
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