Another update on the current crisis related to the PKFZ scandal. Chairman of Port Klang Authority (PKA) Datuk Lee Hwa Beng has filed a suit against Port Klang Free Trade Zone (PKFZ) turnkey developer Kuala Dimensi Sdn Bhd disputing the computation of interest that may go as high as RM720mil at the Shah Alam High Court registry.

Lee said that PKA was disputing the imposition of interest in the PKFZ land purchase as well as the wrong computation of interest that might have arisen.

The total sum in dispute might be as high as RM720mil, he said on the PKFZ website.

In the legal suit, PKA is seeking a declaration that the interest charged on the balance purchase price of the land was wrongly imposed.

KDSB had sold the land to PKA at RM1.088bil or RM per sq ft on a “special value” basis.

The balance purchase price was to be paid by PKA on a deferred payment basis.

“The special valuation of RM25 per sq ft had taken into consideration the interest element.

“Interest ought not to have been charged separately and/or in addition to the said RM25 per sq ft.

“PKA is, therefore, also seeking a rectification of the computation of the schedule of payment of the balance of purchase price to exclude interest and a refund from KDSB of the interest payment made by PKA thus far.

“PKA also contends that even if interest were to be allowed by the court, it had been computed on the wrong basis, which requires rectification of the schedule of payment of the balance purchase price.

PKA would also file other suits in relation to the fraudulent and/or wrongful and/or irregular claims as well as make official complaints to the various professional bodies in relation to the conflict of interest and professional negligence of the consultants involved, he said.

“The legal action taken today and in the days to come were approved by the PKA Board in the sitting on Aug 18.

“These actions are among the civil remedies that PKA, being a party to, will have to take in pursuant of its legal rights,” Lee said.

This decision to take legal action was made before the setting up of the new task force chaired by the Chief Secretary to the Government and did not overlap areas in which the new task force was looking into, he said.

Related posts:
* Kuala Dimensi bank account frozen
* PKFZ scandal masterminds
* Truth about PKFZ blog

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Saturday, September 5, 2009

Kuala Dimensi bank account frozen

Police have or­­­dered a bank to freeze about RM140mil in the account of Kuala Dimensi Sdn Bhd, the turnkey developer of the controversial Port Klang Free Zone pro­ject.

It is learnt that Commercial Crimes Inves­ti­gations Department (CCID) officers have asked the bank to freeze the account as the money is be­lieved to have been derived from the Port Klang Free Zone project.

Sources said the CCID officers were also be­­lieved to have traced several hundreds of millions more in another account and were making arrangements to freeze that account too.

It is learnt that the CCID officers invoked Section 44 of the Anti-Money Laundering Act to freeze the account pending investigations.

Inspector-General of Police Tan Sri Musa Hassan also briefed Prime Minister Datuk Seri Najib Tun Razak on the PKFZ investigations yesterday.

Police investigations were initiated following a report lodged by Port Klang Authority (PKA) chairman Datuk Lee Hwa Beng.

“We are going through all documents pertaining to the project to ascertain if there are any shoddy dealings or misappropriation of funds or any other criminal of­­fence.

“A special task force has been set up specifically to investigate the matter, and we need time to go through every document,” he said.

Musa said his officers would be calling up the parties involved.

He urged those to be called up to cooperate to ensure a speedy in­­­vestigation as it was of public interest.

Meanwhile, Deputy CEO of Kua­la Dimensi Sdn Bhd Datuk Faizal Haji Abdullah said in a statement: “KDSB (Kuala Dimensi Sdn Bhd ) confirms that several of its accounts have been frozen. The accounts were frozen late yesterday afternoon.

“We regard this as part of the investigation process and we are giving our fullest cooperation to the police. In the meantime, KDSB is taking advice on the legality of the freezing orders.”

A task force, set up by the Transport Ministry had on June 10, found possible fraud, including overcharging and unsubstantiated claims running into hundreds of millions of ringgit by Kuala Dimensi.

The eventual amount in dispute could run up to as much as RM1bil.

Kuala Dimensi chief executive officer is Bintulu MP Datuk Seri Tiong King Sing, is treasurer-general of the Sarawak Progres­sive Demo­cratic Party. Kuala Dimensi’s deputy chief executive officer is Datuk Faisal Abdul­lah.

The task force comprised Skrine partner Lim Chee Wee and PricewaterhouseCoopers Adviso­ry Services’ managing director Chin Kwai Fatt, and senior executive director Lim San Peen.

PKA chairman Lee Hwa Beng lodged two reports – one with the police and the other with the Malaysian Anti-Corruption Com­mission (MACC) – upon receiving the 370-page report with 2,500 appendices from the task force.

Lee in his report said the task force had found that Kuala Dimensi had:

> POSSIBLY made fraudulent claims on electrical infrastructure worth RM55.8mil, which had yet to be carried out on the site, and 33kv supply works and civil infrastructure works worth RM83mil, as TNB had rejected the proposal for Kuala Dimensi to undertake the work;

> NOT provided any document to support its claim of at least RM231mil as preliminaries under the development agreements, besides making claims for items it was not contractually entitled to, such as procurement of a performance bond and payment for insurance premiums totalling RM5mil;

> NOT justified its claim for variation works of RM62mil under Additional Development Works and New Additional Development Works agreements;

> APPEARED to have made an “over claim” for hotel works for which Kuala Dimensi had claimed RM69.6mil compared to the quantity surveyor’s valuation of RM44.7mil.

> NOT produced any invoice or payment voucher for the RM61mil which the company claimed was professional fees and expenses incurred; and

> CLAIMED RM254.9mil as extra work done even though the purported revised works fell within the scope of the original works envisaged in the main development agreement.

Related posts:
* PKFZ scandal masterminds
* Truth about PKFZ blog

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Malaysia take its first delivery of a submarine and named it KD Tunku Abdul Rahman, after the first prime minister. The submarine will be used to protect Malaysia's water against possible attack by US, China and Thailand navies. That is just a possibility but the fact remain that Malaysia cannot even stop illegal immigrants landing at it local beaches.

The Royal Malaysian Navy’s first submarine, KD Tunku Abdul Rahman, arrived at KD Sultan Abdul Aziz Shah, the naval base in Pulau Indah here on Thursday.

The Scorpene submarine, with 32 officers and crew members on board led by commanding officer Zulhelmey Ithnain, reached the jetty at 9.20am.

As the surfacing submarine, pulled by two tugboats, approached the jetty, some of its crew members were seen waving at the waiting crowd.

Present to witness the submarine’s arrival were Yang DiPertuan Agong Tuanku Mizan Zainal Abidin, RMN captain-in-chief the Sultan of Selangor Sultan Sharafuddin Idris Shah, Prime Minister Datuk Seri Najib Tun Razak and his deputy Tan Sri Muhyiddin Yassin, and Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi.

Also present to welcome its arrival were the Malaysian Armed Forces chief General Tan Sri Azizan Ariffin, RMN chief Admiral Tan Sri Abdul Aziz Jaafar, Inspector-General of Police Tan Sri Musa Hassan, foreign military officials and family members of the submarine crew.

The dignitaries were then taken into the nation’s first submarine for a visit, after which Tuanku Mizan launched commemorative stamps and first-day covers in conjunction with the submarine’s arrival in the country.

The stamps and first-day covers were issued by Pos Malaysia Bhd in collaboration with the RMN.

The KD Tunku Abdul Rahman commemorative stamps are sold at 30sen and 50sen each, and a complete set of the stamps and first-day covers are available for RM33.10 at all post offices.

KD Tunku Abdul Rahman sailed from Toulon, France on July 11 and took 54 days to reach Port Klang, making stops at Jeddah, Djibouti and Cochin on the journey, which included 32 days of submersion and 10 days of surfacing.

It is one of two Scorpene submarines acquired by the Malaysian government to strengthen the RMN.

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