The PKFZ special task force today revealed irregularities in claims made by Kuala Dimensi Sdn Bhd, stating that the total amount could be between RM500 million and RM1 billion.

Port Klang Authority (PKA) chairperson Lee Hwa Beng said that the original RM93 million being claimed was just a fraction of the overall "amount in dispute".

NONE"The sum total of the amount in dispute is between RM500 million to RM1 billion," he said.

He added that the PKA was looking into six other aspects of "possible serious irregular claims, negligence, wrongdoings and other irregularities" identified by the task force.

The six aspects are:

1) Irregular claims for the electrical infrastructure worth RM55.8 million, supply works and civil infrastructure worth RM83 million,

2) Kuala Dimensi did not provide documents to support claims for at least RM231 million for preliminaries under the development agreement. They also made claims for items they were not contractually entitled to such as procurement of a performance bond and payment for insurance premiums, both totalling RM5 million,

3) No basis for Kuala Dimensi's RM62 million claim for variation works under additional development works (ADW) and non-additional development works (NADW),

4) Over-claim for the hotel works by RM24.9 million,

5) Kuala Dimensi did not produce invoices and payment vouchers for RM121.6 million of claims for professional fees allegedly incurred, and

6) Kuala Dimensi may not be entitled to a RM254.9 million claim for extra under development agreement 3 because the purported revised works fall within the original scope of the works under Land Agreement 1.

Board members of PKA also want the quantity surveyors in the task force to continue their probe into the "value of the works" done by Kuala Dimensi Sdn Bhd to establish the real sum owing to them.

The special task force was set up on June 10 to look into the legal and financial aspects of PKA and PKFZ following the release of the audit report which found severe mismanagement in the Port Klang Free Trade Zone project.

Lee also disclosed that he will lodge a police report at the Klang police station tomorrow so that investigations will be carried out.

"The board is considering the commencement of appropriate legal action against various parties," he added.

Do what is necessary

Transport Minister Ong Tee Keat was also present at the press conference.

NONEOng said it is the commitment of the Ministry of Transport and Port Klang Authority to uphold the people's interest.

"My instruction to PKA is to do what is necessary and right in exercising their duties on the findings and recommendations of the report by the task force and if appropriate, the necessary legal action should be taken," he said.

Ong thanked the members of the task force for submitting their report to the board exactly two months from the date on which they were set up.

The special task force was set up on June 10 to look into the legal and financial aspects of PKA and PKFZ following the release of the report by PricewaterhouseCoopers Advisory Services.

The task force revealed its findings during a meeting with board members of PKA this morning.