What the newspapers did not report and the MACC is hiding (part 1)

The Sultan of Selangor’s sister, Tengku Putri Arafiah ibni Almarhum Sultan Salahuddin Abd Aziz, has been implicated in a RM500 million scandal. This scandal involves the construction of a new hospital in Shah Alam that has turned bad. First read what the newspapers reported. Tomorrow, we will reveal what they did not report and will show you the RAHSIA documents which are in the hands of the MACC. Will the MACC dare pursue this case?

THE CORRIDORS OF POWER

Raja Petra Kamarudin

Sunshine Fleet successfully blocks payment to sub-contractor

(Bernama) – Sunshine Fleet Sdn Bhd, the main contractor for the new Shah Alam Hospital and a company owned by the Selangor sultan’s sister, obtained an injunction from the High Court today to stop Bank Rakyat from releasing payment to GM Healthcare Sdn Bhd, the sub-contractor for the project.

High Court Judicial Commissioner Lee Swee Seng granted Sunshine Fleet’s application for an interim injunction to stop the bank from releasing the payment pending the disposal of a suit filed by Sunshine Fleet against GM Healthcare and Bank Rakyat.

Lee made the decision after hearing the submissions from Sunshine Fleet’s lawyer Jasbeer Singh and T. Gunaseelan for GM Healthcare.

Sunshine Fleet filed the suit against GM Healthcare and the bank, claiming that the bank should pay the balance of the project money, which was deposited by Jabatan Kerja Raya (JKR) for repayment of the project loan, to Sunshine Fleet after deducting the balance.

GM Healthcare in its counter-claim against Sunshine Fleet and the bank claimed that Sunshine Fleet was interfering with the contract between the company (GM Healthcare) and the bank

GM Healthcare said the bank, after deducting the project money from JKR for repayment of the loan, must release the balance of the money to it (GM Healthcare).

In another case, GM Healthcare had on April 23, filed a petition to wind up Sunshine Fleet, seeking for an order that the main contractor pay RM10 million to GM Healthcare, the sum allegedly owed by the company to GM Healthcare.

GM Healthcare filed the petition pursuant to Section 218 of the Companies Act 1965 which allowed the court to wind up a company if it failed to pay its debts.

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GMH lodges police report against Sunshine Fleet

(Free Malaysia Today) – GM Health Sdn Bhd, the sub-contactor to Sunshine Fleet Sdn Bhd, which is involved in the construction of Hospital Shah Alam, filed a report at the Section 11 police station here today.

Construction work on the hospital has since come to a halt.

GMH’s chief executive officer Elvin Toh Chen Vin lodged the report after Sunshine Fleet instructed GMH to remove its building materials by 4pm today, failing which stern action will be taken against the latter.

Fearing for the safety of its staff, GMH lodged the police report.

Sunshine Fleet in its fax to GMH on Aug 11 cancelled its sub-contract agreement with the latter with immediate effect. The fax also read: “We hereby urge you to call off your workers/representatives from the site and remove all your materials from there with immediate effect.”

The fax also stated that Sunshine Fleet will take legal action against GMH if it fails to do so within the time frame given.

Elvin also alleged that Sunshine Fleet threatened to remove the building materials today.

“They (Sunshine Fleet) are forcing to vacate the site. Bad things may happen to us if we fail to do so. I had no choice but to lodge the police report,” Elvin said after filing the report.

When asked whether he will take legal action against Sunshine Fleet, he said the matter was still being discussed.

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Petition struck out to wind up Shah Alam Hospital project’s main contractor

(Bernama) – The High Court today struck out a petition by a sub-contractor for an order to wind up the main contractor of the new Shah Alam Hospital project.

Judicial Commissioner Mah Weng Kwai struck out the petition when counsel for the petitioner, GM Healthcare Sdn Bhd, failed to turn up after the case was called up twice.

GM Healthcare has sought to get an order to wind up the main contractor, Sunshine Fleet Sdn Bhd, and the court was set to hear the petition today.

Counsel for Sunshine Fleet were also absent.

Mah asked Intan Azlina Mazlan, who was holding a watching brief for Putra Perdana Construction Sdn Bhd, a construction company and creditors of Sunshine Fleet, whether GM Healthcare’s lawyers knew of the hearing date.

Intan Azlina replied that the lawyers should have known, as they were present in court when the case came up in July.

GM Healthcare had, on April 23, filed the petition under Section 218 of the Companies Act 1965 which allows the court to wind up a company if it fails to pay its debts.

In the petition, it sought an order for the main contractor to pay GM Healthcare RM10 million, the sum allegedly owed to GM Healthcare by Sunshine Fleet.

The money was supposed to be the advance payment bond or bank guarantee placed with the Public Works Department on behalf of Sunshine Fleet for the design, construction, equipping, commissioning and maintenance of the hospital.

The 300-bed hospital was expected to be completed by June next year.

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Sunshine Fleet dispute settled out of court

(Bernama) – A dispute between Tengku Putri Arafiah ibni Almarhum Sultan Salahuddin Abd Aziz and her son Putera Azamuddin Shah Abdul Aziz over the winding up of Sunshine Fleet Sdn Bhd has been settled out of court.

This followed the withdrawal of a petition filed by Putera Azamuddin Shah to wind up the company, which is the main contractor of the Shah Alam Hospital, before High Court judge Mohamad Ariff Md Yusof in the judge’s chambers today.

Counsel Datuk Rajan Navaratnam, who represented Putera Azamuddin Shah, told reporters afterwards that it was an amicable settlement and did not involve any costs.

Besides Rajan, also present was counsel Jasbeer Singh, who represented Tengku Putri Arafiah.

Putera Azamuddin Shah Abdul Aziz had filed the petition on April 27 against the company, Tengku Putri Arafiah and his mother’s uncle Tengku Abdul Samad Shah ibni Almarhum Sultan Salahuddin Abd Aziz.

Sunshine Fleet is 70 per cent owned by Tengku Putri Arafiah, the Selangor sultan’s sister, 20 per cent by Tengku Abdul Samad and 10% by Putera Azamuddin Shah, and all three are managing directors of the company.

In his petition, Putera Azamuddin Shah said the company was being managed improperly and he had been prevented from taking part in its management and financial affairs.

He claimed that he was not informed of two resolutions, which were passed at an extraordinary general meeting (EGM) held on Feb 1, 2007, to amend the company’s Articles of Association.

The petition was filed under Section 181 of the Companies Act 1965, which entitles a minority shareholder to invoke the said section when there are concerns of oppression of the minority by the majority shareholders.

It also refers to situations where there are concerns that the conduct and affairs of the company are being handled in a prejudicial manner, not in the best interest of the company.