PKA lodges MACC report over conspiracy by KDSB, others

UPDATED

By Lee Wei Lian

KUALA LUMPUR, Aug 26 — The Port Klang Authority (PKA) has lodged a report with the Malaysian Anti-Corruption Commission (MACC) over an alleged conspiracy by five parties to commit wrongdoing in the development of the scandal hit Port Klang Free Zone (PKFZ) project.

The five parties named by PKA are Datin Paduka OC Phang, the former general manager of PKA; Datuk Seri Tiong King Sing, the president and CEO of Kuala Dimensi Sdn Bhd (KDSB); KDSB and its directors, servants and agents and BTA Architect; and Bernard Tan Seng Swee, the consultant appointed for development works for PKFZ.

PKA chairman Datuk Lee Hwa Beng lodged the report today at MACC in Putrajaya this afternoon.

The amount of disputed claims that PKA now says it has found rose to about RM1.4 billion from between RM500 million to RM1 billion it had disclosed two weeks ago on Aug 10.

“PKA requests MACC to investigate the relationship between KDSB, its president and CEO Datuk Seri Tiong King Sing, BTA, Bernard Tan and OC Phang. Based on the instances set out below, we have strong reason to believe that there is a possible conspiracy between these 5 parties,” said Lee in a statement to the media.

Phang, who was named early on when the uproar over PKFZ first erupted in 2007, had been largely ignored this year as the focus was mostly on KDSB.

Her name resurfaced after a PKA commissioned special task force completed its probe of PKFZ and she is expected to testify before the Parliament Public Accounts Committee sometime soon and it will be her second, with the first time being in 2007.

PKA is claiming that Phang had carried out actions that were apparently to the detriment of PKA and beneficial to KDSB, the main developer of PKFZ, and made unilateral decisions without the approval of board members of PKA.

It further claimed that Phang knew PKA could not self-finance the purchase of the PKFZ land but failed to alert the government and that she had appointed Perunding BE Sdn Bhd as PKA’s sole quantity surveyor, even though she knew the same company had been engaged by KDSB, leading to a conflict of interest.

The former PKA general manager was also accused of compounding PKA’s financial liabilities by entering into “significant and expensive” development contracts with KDSB worth some RM1.055 billion and that she had failed to consider that the special value of RM25 per square foot (psf) that PKA paid KDSB for the PKFZ land had included interest, instead of paying RM25 psf on a deferred basis with further and or additional interest of 7.5 per cent.

PKA also alleged that KDSB worked in concert with BTA Architect to issue notices of payment to the port authority which are “false, erroneous or defective” and which it believes were intended to mislead.

It claims that these notices of payment are fraudulent as they claimed payment for works which in reality had not been carried out.

Lee had on Aug 11 lodged a police report at the Klang Police Station over these notices of payment and other irregularities totalling about RM657 million.

“Tiong King Sing, being the president and CEO of KDSB, would have known that these notices of payment were issued wrongfully,” said Lee.

Tiong is also the subject of a RM500 million lawsuit from Transport Minister Datuk Seri Ong Tee Keat, after he refused to retract his claim that Ong received RM10 million worth in political donations for MCA from him last year.

Tiong’s company, KDSB, last week filed lawsuits against Lee and Ong claiming that the two men had acted beyond their powers by publishing the PwC report on PKFZ.


 

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