PKA sues KDSB, BTA Architect for RM920m
(Bernama) – The Port Klang Authority (PKA) has filed RM920 million suits against Kuala Dimensi Sdn Bhd (KDSB), the turnkey contractor for the Port Klang Free Zone (PKFZ), and the project consultant, BTA Architect, over key development and supplemental agreements signed between February 2003 and November 2006.
PKA chairman Datuk Lee Hwa Beng Lee filed the suits himself at the Civil High Court registry here today. However he refused to give copies of the two suits to the media.
Lee, in a statement, said that the suits were filed for relief, including for rescission of all the development agreements, and a declaration that KDSB is only entitled to be paid the reasonable value of work properly done.
Alternatively, Lee seeks a declaration that all notices of payments issued by KDSB are null and void.
He also alternatively seeks a declaration that KDSB is not entitled to, and PKA is not obliged to pay KDSB, the claims totalling RM836,758,459.92 which KDSB had made for the monsoon drain and water supply works, preliminaries, professional fees and variation works respectively under the development agreements.
Alternatively, he seeks an order that the works carried out by KDSB be remeasured by an independent consultant appointed by the court and the preliminaries and professional fees payable be assessed by the court.
Lee also seeks interest, general damages and costs on an indemnity basis and damages for fraud and negligent misrepresentation, interest, costs, damages for conspiracy and any other relief deemed fit by the court.
He said PKA had also filed an originating summons at Civil High Court registry here to seek a declaration that the increase in the interest rate from 5 percent to 7.5 percent per annum in respect of a supplementary agreement for additional development works signed in April 2006 is null and void.
The total disputed amount at present totalled around RM1.64 billion, including the RM720 million suit filed by PKA on Sept 18, he said.
"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.
KDSB was appointed by PKA in 2003 to develop the PKFZ on a 405ha site adjacent to the North Port in Klang.
The company was embroiled in a controversy after it was alleged to have over-charged PKA for the PKFZ project, causing PKA and the project severe lossess.
