Thursday 28 Mar 2024
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SHAH ALAM: Former Port Klang Authority (PKA) chairman Datuk Lee Hwa Beng said general manager OC Phang was a powerful person because the executive authority was vested in her. He, on the other hand, was merely a chairman without executive power.

“(As) a chairman, I do not have the executive power,” said Lee when being examined by deputy public prosecutor Mohamad Anas Mahadhir yesterday. He was testifying for the prosecution in Phang’s trial on charges of committing three counts of criminal breach of trust (CBT) involving RM254 million at the PKA premises in Port Klang between Oct 1, 2004, and May 9, 2006. If convicted, she faces a maximum of 20 years’ jail and a fine on each charge.

Lee said only the PKA board could meet and direct the general manager to adhere to certain policies.

“Otherwise, the day-to-day [running] of PKA operations was in the hands of the general manager in her capacity as the chief executive officer of the organisation.”

Lee had lodged a police report in August 2009 following a forensic audit conducted by PricewaterhouseCoopers (PwC) on the controversial RM1.8 billion Port Klang Free Zone (PKFZ) scandal. Lee, who is an accountant, had said on Monday that the report was lodged because PKFZ turnkey contractor Kuala Dimensi Sdn Bhd (KDSB) was said to have made a double claim for the construction of a monsoon drain and water supply works.

The prosecution’s case was that payments for both infrastructure works had been included in the sales and purchase agreement when PKA bought the land from KDSB, the initial owner of the property.

The PKFZ scandal first surfaced in 2007 when it was reported that the development costs of the integrated cargo distribution hub and industrial park had more than doubled.

The free trade zone was set up by PKA in 1999 on a joint venture with the Jebel Ali Free Trade Zone to attract foreign investment and promote the port. In 2000, the government valuation department had priced the 404ha site in Pulau Indah for PKA to purchase from landowner KDSB at RM18 per sq ft (psf).

However, the price was revised to RM21 psf when KDSB was allowed to develop the property together with seven types of infrastructure work, which included the building of a monsoon drain and water supply. PKA paid RM1.8 billion, including interest to KDSB.

Most of yesterday’s hearing was devoted to the prosecution, who through Lee verified progress claims made by KDSB amounting to RM1.3 billion. The hearing before Sessions Judge Selamat Yahya continues. — The Malaysian Insider

 

This article first appeared in The Edge Financial Daily, on March 11, 2015.

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