Digest on Malaysian News

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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