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Port Klang Authority lodges conspiracy report with anti-corruption body

Port Klang Authority lodges conspiracy report with anti-corruption body

Kuala Lumpur: Port Klang Authority (PKA) chairman Datuk Lee Hwa Beng has lodged a report with the Malaysian Anti-Corruption Commission (MACC) against five parties comprising individuals and companies on the grounds of possible conspiracy, writes Bernama.

Lee told reporters at the entrance of the MACC headquarters here today that he had also submitted the relevant documents as supporting evidence to the report lodged.

"As instructed by PKA, I lodged a report on behalf of PKA with the MACC against the following companies and individuals:
"Kuala Dimensi Sdn Bhd (KDSB) and its directors, servants and/or agents being the turnkey contractor for the Port Klang Free Zone (PKFZ) project, former PKA general manager Datin Paduka OC Phang, the president and CEO of KDSB Datuk Seri Tiong King Sing, and BTA Architect and/or Bernard Tan Seng Swee as the consultant appointed for the project."

According to Lee, there were instances of wrongdoing by Phang which were detrimental to PKA but benefited KDSB, including the failure to consider that the special value of RM25 per square feet (PSF) had included interest instead of RM25 PSF on a deferred basis with further additional interest of 7.5 per cent.

"She (Phang) failed to consider whether PKA had the ability to self-finance the purchase of the land. PKA was notified by the Auditor-General as early as May 27, 2004 that the former was not in a position to self-finance the project.

"However, OC Phang failed to alert the government of this and to take immediate steps to alleviate its financial predicament. To compound the problem, PKA continued to enter into significant and expensive development contracts with KDSB, such as ADW1 and NADW, thus escalating further its financial liabilities.

"OC Phang knew of the financial position of PKA but proceeded to enter into those two agreements which totalled RM1.055 billion," Lee further explained in a press statement.

Apparently, Phang also refused to heed the advice of her officers and professionals to appoint quantity surveyors for DA3, ADW1 and NADW and delayed their appointment as well as limiting and restricting their role.

Lee said Phang insisted on Perunding BE Sdn Bhd as the sole quantity surveyor with the knowledge that the company was in a position of conflict of interest for having been engaged by KDSB or its subcontractor for PKFZ.

Lee also claimed that KDSB along with BTA Architect had issued false, erroneous or defective Notices of Payment to PKA, with the intent to mislead.

"These Notices of Payment are fraudulent as the notices claimed payment for works which in reality had not been carried out. Tiong King Sing, being the president and CEO of KDSB would have known that these notices were issued wrongfully.

"The details of the Notices of Payment and other instances of irregularities totalling around RM657 million are the subject of a police report lodged on Aug 11," stated Lee.

He then gave his firm assurance that PKA would use every legal means possible to challenge the disputed claims amounting to about RM1.4 billion.  [26/08/09]

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