Friday, September 25, 2009

PKFZ: PKA sues Kuala Dimensi, BTA for RM920m

SHAH ALAM: Port Klang Authority (PKA) chairman Datuk Lee Hwa Beng has filed two suits against Kuala Dimensi Sdn Bhd and BTA Architect, amounting to RM920mil, disputing the amount of money claimed by both companies for work done on the Port Klang Free Zone (PKFZ) project.

In his writ of summons filed at the High Court here on Friday, Lee is seeking damages against what he has described as a conspiracy.

He is also seeking to rescind all development and supplement agreements signed between February 2003 and November 2006, Lee said in a statement.

PKA wants all the agreements rescinded or a declaration that Kuala Dimensi is only entitled to be paid the “reasonable value of work properly done” on the scandal-hit PKFZ project.

Kuala Dimensi is the turnkey developer and BTA the appointed consultant of the project.

Alternatively, PKA wants the court to declare that all notices of payment issued by Kuala Dimensi are null and void.

It is also seeking damages from BTA over what it alleged were “fraud and negligent misrepresentation.”

The original cost of the land and PKFZ project was estimated at RM1.96bil but escalated eventually to RM3.52bil under a series of supplemental agreements. Including the cost of interest on deferred payments to Kuala Dimensi, the total costs came up to RM4.95bil.

Price-waterhouseCoopers Advisory Services (PwC), which was commissioned by the PKA to look at the PKFZ project, has estimated that based on current projections of revenue and costs, including interest costs, the project could eventually cost RM12.45bil.

Lee had earlier said various parties had made disputed claims that amounted to about RM1.5bil from the PKFZ project.

He alleged a possible conspiracy among five parties: Kuala Dimensi, its chief executive officer Datuk Seri Tiong King Sing, former PKA general manager Datin Paduka O.C. Phang, BTA Architect and consultant for development works Bernard Tan Seng Swee.

Lee said details of these irregularities were reported to police on Aug 11.

Earlier September, the PKA filed a suit against Kuala Dimensi disputing the latter’s imposition of interest in the PKFZ land purchase and for wrong computation of interest.

(Source: The Star Online)

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