Tuesday, December 15, 2009

PKFZ: "Why Must I Pay?"

Amidst all the hoo-ha over various people being charged on falsifying hundreds of million ringgit claims with regards to the Port Klang Free Zone project, I've asked the Government to stop payment to the developer, Kuala Dimensi (KDSB) and its bondholders until it has been proven that KDSB has carried out the work.

It was hence quite amusing to read the response of KDSB CEO, Datuk Seri Tiong King Sing in the Malay Mail today ;-)
WHY MUST I PAY?
KHARLEEZ ZUBIN
Tuesday, December 15th, 2009 10:57:00

KUALA LUMPUR: Mired in controversy, Kuala Dimensi Sdn Bhd (KDSB) CEO Datuk Seri Tiong King Sing has bluntly refused to settle outstanding loans to bondholers in the Port Klang Free Zone (PKFZ).

"Why should I settle outstanding loans? We have completed what was required of us and handed over the project to the port authorities.

It is not my fault if they didn’t move on,” he told The Malay Mail at the Parliament lobby yesterday.

“We are contractors and if there was a delay in handing over the project, they should have terminated our contract or sent us warnings for the delay.”

PJ Utara Member of Parliament Tony Pua was the latest to question why the government had given a guarantee to settle KDSB’s debt obligations when there was a possibility that KDSB might be proven to have failed in performing a satisfactory job on PKFZ and therefore, should not be paid in full.

[...]

On claims that the government should not pay KDSB or its bondholders while waiting for the RM1.4 billion dispute to be settled in court, Tiong, who is the MP for Bintulu, said:

“That’s good, but who is going to pay the interest? Delay means interest and KDSB cannot be made to pay.”

On August 26, 2009, the Port Klang Authority (PKA) had sued KDSB for wrongful or excess claims amounting to RM1.4 billion.

[...]

The Opposition had argued that if the court decides Kuala Dimensi had made wrongful or excessive claims, then the outstanding loans due to the bondholders must be settled by the owners, since they borrowed the money, not the Malaysian government.
For the full text of the article, check it out here.
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