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The
Port Klang Authority has decided to withhold
payments due to Kuala Dimensi Sdn Bhd for the
Port Klang Free Zone project.
Its chairman Datuk Lee Hwa Beng said the board
had decided to do this pending completion of the
full review of the project by the task force
already commissioned to take another look into
PKFZ.
“As has been previously announced, the PKA has
commissioned the task force to make
recommendations on action to be taken based on
the PriceWaterhouseCoopers report.
“The PKA board has resolved, on the basis of
preliminary and provisional views obtained, to
withhold these payments pending the completion
of the full review by the task force.
“The authority recognises that in not making
these payments litigation could result against
it. If this happens, PKA will defend these
actions and will await the outcome of the
litigation, which will determine PKA’s true
liability,” he told reporters at a press
conference here Tuesday.
The authority was supposed to have paid Special
Port Vehicle Bhd, Transhipment Megahub Bhd,
Valid Ventures Bhd and Free Zone Capital Bhd
totalling some RM660mil payable in four parts
this and next month.
The payment is for:
- RM130mil allegedly payable on or before
Tuesday under the Sale and Purchase
agreement dated Nov 12, 2002 between KDSB and
PKA,
- RM230mil allegedly payable on or before
Tuesday under the Development
agreement dated March 27, 2004 between KDSB and
PKA
- RM150mil allegedly payable next month under
the supplemental agreement for
additional development works dated Nov 30
between KDSB and PKA
- RM150mil allegedly payable next month under
the supplemental agreement for
new additional development works dated April 26,
2006 between KDSB and
PKA.
The board, he stressed, was taking the action in
the best interest of the authority and had not
decided so due to pressure from any outside
party.
“The Board’s decision is also part of efforts by
the ministry to restructure PKFZ’s financial
position and seek appropriate legal remedies,
including a legal review of some of the
agreements it had signed in the past,” he said.
Lee said the full recommendations of the special
task force were expected to be submitted to PKA
and Transport Minister in August.
Source: The STAR NATION
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