Wednesday, August 26, 2009

RM1.4 billion Excess Claims by Kuala Dimensi!

Self-explanatory press statement just issued by Dato' Lee Hwa Beng, Chairman of Port Klang Authority (PKA) on this report to the Malaysian Anti-Corruption Commission (MACC) today, with regards to excess claims, fraudulent or otherwise, or RM1.4 billion(!) by Kuala Dimensi Sdn Bhd from PKA. The DAP will support all moves taken by PKA to recover these monies from the Developer, Kuala Dimensi.

1. As instructed by the Port Kelang Authority (“PKA”), I lodged a report on behalf of PKA with the Malaysian Anti-Corruption Commission (“MACC”) on Wednesday 26 August 2009 against the following companies and individuals:
  1. Kuala Dimensi Sdn Bhd (“KDSB”) and its directors, servants and/or agents being the turnkey contractor for the PKFZ Project;
  2. Datin Paduka O.C. Phang (“OC Phang”), the former General Manager of PKA;
  3. Dato’ Seri Tiong King Sing (“Tiong King Sing”), the President and Chief Executive Officer (“CEO”) of KDSB; and
  4. BTA Architect and/or Bernard Tan Seng Swee as the Consultant appointed for the development works in the PKFZ Project.
2.1 PKA requests MACC to investigate OC Phang, and the relationship between KDSB, its President/CEO Datuk Seri Tiong King Sing, BTA, Bernard Tan and OC Phang. Based on the instances set out below, we have strong reason to believe that there is a possible conspiracy
between these 5 parties.

2.2 PKA has decided that interest charged under LA1 amounting to RM720 million ought not to have been imposed because the purchase price of the land was based on special value of RM25 p.s.f. which had included the interest element for the deferred payment scheme.

2.3 In relation to OC Phang, there are instances of wrongdoing carried out by OC Phang which were to the detriment of PKA and which had apparently benefited KDSB. These instances of wrongdoing include,
  1. Failure to consider whether PKA had the ability to self-finance the purchase of the Land. PKA was notified by the Auditor General as early as 27 May 2004 that the former was not in the position to self-finance the Project. However, OC Phang failed to alert the Government of this and to take immediate steps to alleviate its financial predicament. To compound the problem, PKA continued to enter into significant and expensive development contracts with KDSB (i.e. ADW1 on 30 November 2005 and NADW on 26 April 2006) thus escalating further its financial liabilities. OC Phang knew of the financial position of PKA but proceeded to enter into those two agreements which total RM1.055 billion;

  2. Failure to consider that the special value of RM25 p.s.f. had included interest instead of RM25 p.s.f. on a deferred basis with further/additional interest of 7.5%;

  3. Refusal to heed the advice of her officers and other professionals, to appoint quantity surveyors for DA3, ADW1 and NADW, delaying the appointment of the quantity surveyors and thereafter limiting and restricting their role;

  4. Insistence that Perunding BE Sdn Bhd be appointed as the sole quantity surveyor with the knowledge that Perunding BE Sdn Bhd was in a position of conflict of interest for having been engaged by KDSB and/or its subcontractor for the same Project;

  5. Generally in making unilateral decisions without the approval of the members of PKA.
2.4 KDSB, along with BTA Architect working in concert with it, had issued Notices of Payment to PKA which are false, erroneous or defective and which PKA believes were intended to mislead PKA. These Notices of Payment are fraudulent as the notices claimed payment for works which in reality had not been carried out. Tiong King Sing, being the President/CEO of KDSB, would have known that these Notices of Payment were issued wrongfully. The details of these Notices of Payment and other instances of irregularities totaling around RM657 million are the subject of police report lodged on 11 August 2009 at the Klang Police Station, the details of which are set out below,
  1. KDSB has made claims for the sum of RM5,016,000.00 in respect of procurement of Performance Bond and Insurance Premiums which KDSB is not entitled to claim;

  2. KDSB’s wrongful claim for the sum of RM254,850,000.00 for monsoon drain works and water supply works which KDSB is not entitled to claim under DA3;

  3. Based on JKR Standard Form of Agreement For Consultancy Services Between Contractor And Consultants For Design & Build Contract, KDSB may have over-claimed the sum of RM76,056,101.08 in professional fees;

  4. KDSB had made claims for the sum of RM55,767,000.00 for physical construction of the electrical infrastructure for 33kv system works which have yet to commence;

  5. There appears to be an over-claim for the hotel works in the sum of RM24,934,244.14;

  6. KDSB’s claim for variation works for the sum of RM62,189,000.00, which arguably, KDSB is not entitled to claim as the procedural requirement under the ADW has not been complied with; and

  7. KDSB’s claim for the sum of RM83,000,000.00 for 33kv supply to Precinct 2 and 8 and the civil and infrastructure work to PMU which have yet to be carried out.

  8. Remeasurement by JUBC Sdn Bhd by of the Office Blocks and Light Industries Units which showed a cost difference of RM93,000,000.00.

  9. Contributions not made to authorities by KDSB for the basic infrastructure works as required under LA1, in the sum of RM2,249,742.29.
PKA will use every legal means possible to challenge the disputed claims amounting to about RM1.4 billion.


Anonymous said...

No wonder Dato' Sri Burung Tiong was so loyal to the BN/UMNO.
Ada udang di sebalik batu ma... He has betrayed the Sarawak people and we will see what will be the end of this episode. Either or, or neither nor? Will OKT or CSL or the Burung Tiong from Sarawak will stumble.
All of them are Chinese and the opportunity for a real Change was presented but for personal interest that over ride the bigger national interest, everything is topsy turvy now. Padan muka, let them fight as their revered PM will wash his hand.

Unknown said...

this is just too funny the najis government is so cool about it, as if it's just 1.4 ringgit only.

at least do condemn the conduct severely.

najib manaukau said...

All these happened during the tenure of pariah Mahathir. What has the pariah got to say ?

Anonymous said...

This is getting more and more Deep Throat: "Follow the $$$".

More "wayang akan datang" in MCA...

BTW, I went to support Rocket Cafe. The food was quite bad (stale satay & yellowish cucumber) and my cincau drink has soap taste in it???

Anonymous said...

This Billion dollars issue is not so interesting as compared to the investigastion of misallocation of fund by DAP.

They are more concerned about 100 plus commision and 1000 plus purchases.Keep up the good work for concerning on the Govt expenses.

Dont play play. Every single purchase let it be RM10 must have proper receipt and rightly authorised.

Gua caya sama lu.

telur dua said...

Sorry, PKFZ can wait.

Top of their priorities is the alleged RM112 commission. Yes, aren't they clever?

Anonymous said...

Tiong, those sarawakian penans kids are starving to death ,can you at least give away a few dollars for these poor souls to have a hot meal a day,for once help not just politicians but poor folks

democrazyman said...

WOW.. This is how our tax money is spent??? The tax money is used to build super mansions and to buy super race cars for BN politicians. Oh My God!

Anonymous said...

The world's investigative agencies shd learn from our MACC,where a mere RM112 (US$30+) missing must be probed no matter how many officers and manpower time needed to be used to get to the bottom of.This is what we call efficiency.

Anonymous said...

1.4 billion claims & "WHO" approved the claims......????

That, I wanna know..!!!!
They don't ask questions with such huge amounts....????

"STUPID" or what...????

So, "WHO" approved it??????
Tell me..!!!
Tell all of us...!!!!!!!!!!!!!!!!!!!!

Anonymous said...

Will MACC (Najib's component) charge the 5 parties ?

It's all back to Najib now.

marcus63 said...

this is why umno is so desperate to burn the midnite oil to take back selangor. all the land transactions have copies in the klang land offices. i wonder who was the most powerful guy in the selangor government at that time?
toyol, zakaria...who else? zakaria is dead, so is toyol contractor...heard of gm build who is able to buy the whole brisdale estate for rm50k from the state coffers, where the clubhouse they have in oug alone is worth $million. how about the rest of the acres & acres of rubber estate in close proximity to prime development?
is toyol the umno link man to the pkfz scandal? while macc rubbishes the purported "poison pen letter", your dap speaker teng has every right to pursue his own investigation to protect the integrity of the selangor legislative assembly. what do you call an adun in your assembly who plots with outside forces to overthrow the government of the day? t......

Khun Pana aka johanssm said...

Only a fraction of our money is being spent "wisely".
The rest goes into their own left and right pockets.
This PKFZ scandal is able to knocks out the entire bn.
They are now acting as it is not an important issue and together with their medias are making PR looks like the crooks instead of themselves.
Macc is really a puppet of the umno regime

Anonymous said...

Dear YB

It seems it's ok to protest with animal head bcoz PDRM will just stand by & watch. No water cannon, no arrests. However, if you protest with candle - this is a BIG NO-NO to PDRM. They will beat up & lock up the protestors esp if from PAKATAN.

So, next time, protest with chicken head or goat head bcoz that's OK. No one will get locked up or beaten up. Btw, you can also threaten to shed blood when holding animal head bcoz to PDRM that's not inciting hate. Only if you hold a candle stick & do that, one will get locked up under ISA immediately.

So, be smart, follow the book on protest set up by Sec.23 Shah Alam residents. That's the std that PDRM will allow. But do check with the PDRM beforehand if chicken or cow head is preferred.

Anonymous said...

the truth is out there...

facts behind sec.23 kuil issue.

Anonymous said...

RM1.4 billion!!! What the fuck!!!

We could have built several universities in Malaysia or hospitals with top class facilities.

Tony, 1.4 billion is 1400 million, right?? Crazy amount of money.

Anonymous said...

Dear YB Tony,

Any update on this lost money?

I hear OC Phang is Ling Liong Sik golden girl, any truth in it?

And I am worry Ong Tee Keat will be terminated as minsiter since Ling Liong Sik is giving money to Chua Soi Lek to kick OTK out. Does it mean PKFZ file will be closed?

A lot of hard work will go to waste.