PKA files another suit over PKFZ

Port Klang Authority (PKA) has filed a RM920 million lawsuit against Port Klang Free Zone (PKFZ) main contractor Kuala Dimensi (KDSB) Sdn Bhd and BTA Architect.

This comes after it filed a RM720 million lawsuit against KDSB last week, bringing the total amount being legally disputed to RM1.64 billion.

A large chunk of the RM920 million lawsuit consists of claims allegedly made by KDSB worth some RM837 million for monsoon drains, water supply works and others.

In the lawsuit filed at the Shah Alam High Court today, PKA is seeking to declare all invoices and billing notices issued by KDSB to be null and void, a rescission of previous development agreements and that KDSB is only entitled to reasonable compensation.

PKA still owes KDSB about RM2.8 billion and PKA is expected to deduct any amount awarded by the court from the outstanding balance owed to KDSB.

PKA has so far paid about RM1.8 billion to KDSB.

PKA chairman Datuk Lee Hwa Beng said there will be more lawsuits to come but declined to give details.

"The PKA board is conscious of its duty to do what is right for the port authority and to exercise its duty in an appropriate manner," he added.

Other applications that PKA is applying for in its latest lawsuit include a court order for work done by KDSB to be re-measured by an independent consultant, RM34 million in costs for remedial work and damages from the loss of use of six acres of land that was turned into a hotel car park due to KDSB's alleged failure to build an underground carpark.

It is also suing BTA Architect for damages from fraud and negligent misrepresentation, as well as interest and costs.

It is suing both BTA and KDSB for damages arising from conspiracy, costs on an indemnity basis, interest and other relief deemed fit by the court.

The developmental agreements and supplemental agreements that PKA is disputing in this lawsuit were signed between February 2003 and November 2006.

The PKFZ project was originally projected to cost less than RM2 billion but may now end up costing over RM12 billion by some estimates and had to be rescued with a RM4.6 billion government loan in 2007.

Several efforts have been made to get to the bottom of the woes facing the troubled transshipment hub including a special task force set up by PKA which was superseded with a new "super" task force announced by Prime Minister Datuk Seri Najib Razak recently.

When contacted, KDSB deputy CEO Datuk Faisal Abdullah said the court is the right place to settle contractual disputes but questioned PKA's haste to file two lawsuits within a week.

"I don't know what is their strategy because after the announcement of the super task force, of which the Attorney-General (AG) is a part, they should have waited for the A-G to check the legal issues," he said.


comments


'PKA chairman Datuk Lee Hwa Beng says that there will be more lawsuits to come'' this is really good news for judges to make another good income !!!

When can the police and MACC complete their investigation in the RM12.5 billion PKFZ "mother of all scandals"? The police and MACC may take their sweet times to complete the investigation like what was done the royal case over a year ago. Why are they having difficulties in wrapping up the investigation since the scandal surfaced around 2004 (already over 4 years ago)? Do not wait for the sky to fall down.

I am not a lawyer. If PKA wins, then they will recieve the money. If PKFZ and KDSB can't pay up, they will be declared bankrupt or go to jail? Looks like the big fish(es) will be getting away.