Kuala Dimensi issues another ultimatum over PKFZ
By Neville Spykerman, The Malaysian Insider
PricewaterhouseCoopers (PwC) has till noon on Monday to reveal how they concluded the Port Klang Authority “may have been overcharged between RM51 million and RM309 Million in interest” for the Port Klang Free Trade Zone (PKFZ).
Turnkey developer Kuala Dimensi Sdn Bhd (KDSB) who are unhappy at being implicated in the audit firm’s report on the RM12.5 billion PKFZ scandal, issued the ultimatum at a press conference today.
“They should have the figures ready as it’s in their report and they can fax it over to our office and to the media on Monday,” said KDSB group deputy chief executive officer Datuk Faizal Abdullah.
He said KDSB had fully cooperated with PwC during their investigations and the audit firm had never challenged the company’s calculations on interest which was agreed upon by all parties involved.
“Our business and that of other associate companies which share a common board of directors has suffered.” he said.
Faizal said legal action including law suits will be filed against several parties whom he declined to name next week.
He said legal action was always a last resort but the company had no choice.
He said KDSB has been unfairly victimized by the audit firm’s report and urged the media to give them fair coverage.
Faizal challenged the PwC report which said there was a possible conflict of interest on parties who had prior association with the land or KDSB.
He said in Malaysia, family connections are normal in business and they had never denied this fact.
However, he said PwC had failed to explain and examine the process on how the 1,000 acres was acquired from Koperasi Pembangunan Pulau Lumut Berhad by KDSB in 1995 and the sale of the land to the Port Klang Authority in 2002.
He said KDSB was not the only company which wanted to develop the land and the cooperative selected the company only after its bid was tabled at their annual general meeting in 1994.
He said about 600 members attended the AGM and they voted to accept KDSB’s proposal.
Faizal said this itself proves that family and political ties had no part in the land deal.
He also disputes PwC’s findings that the land was acquired at ‘Special Value’ which exceeded market value and that the Port Klang Authority did not get value for money due to its reliance on KDSB.
“Our sale of the land to the Port Klang Authority at RM25 per sq feet was not an ordinary sale and purchase.”
As turnkey developer, KDSB was instructed to carry out infrastructure work on the land which cost millions of ringgit.
This included reclaiming the mangrove swamp land as well as building a 6km dual-carriage way.
He said KDSB handed over the land with infrastructure to the Port Klang Authority in a record time of only two-and-half years.
“The sale agreement was signed in March 2004 and PKFZ started operating by mid 2006.”
He said had PKFZ reached its full potential in terms of occupancy, there would be no issue about the huge cost of the project.
