KUALA LUMPUR: The RM720 million Port Klang Authority (PKA) lawsuit against Kuala Dimensi Sdn Bhd (KDSB) is expected to be settled when both parties appear before the Shah Alam High Court on Dec 2.

PKA counsel Lim Chee Wee from legal firm Skrine & Co, said it would only be proper to make a statement on the purported withdrawal of the suit after this date.

However, he said in a statement to The Edge Financial Daily that the evidence produced and findings of fact made by the High Court judge in the criminal trial against Tun Dr Ling Liong Sik have a material impact on the civil suit.

Ling was acquitted of three charges of cheating the federal government regarding the Port Klang Free Zone (PKFZ) land deal.

The Edge Financial Daily reported yesterday that PKA had decided to withdraw its RM720 million suit against turnkey contractor KDSB over the PKFZ fiasco. It is learnt that the PKA board had unanimously agreed to discontinue the suit in a special meeting in Putrajaya last Friday, where seven of the nine directors were present. It was also decided that PKA would initiate negotiations with KDSB for it to withdraw its suit against PKA.

PKA had filed suit against KDSB on Sept 25, 2009, seeking rectification of the agreement signed on Nov 12, 2002, for the land worth RM1.88 billion. It sought a declaration that it should not be charged interest of RM720 million on the balance purchase price of the land under the agreement and sought a refund of the interest paid to KDSB.

PKA contended that mistakes and fraud were involved in the agreement and that the value of the land should be RM21 per sq ft (psf) and not RM25 psf. It also claimed that the purchase price was inclusive of interest as stated in the agreement and that it would be paid over 15 years.

PKA’s decision to withdraw comes just two months after Tan Sri Kong Cho Ha was appointed chairman. PKA is under the purview of the transport ministry and Kong is a former transport minister.

Sources said the PKA board’s decision came after lawyers Skrine & Co had issued a letter saying the case was weak. It is learnt that the PKA subsequently wrote to the Attorney-General and the ministry for their advice.The PKFZ is built on land valued at RM1.88 billion.

The Edge Financial Daily also reported that the advice to withdraw was because of implications from the case of former transport minister Ling. It is learnt that some of the witnesses in this suit were the same and the acquittal had seriously impacted on the decision.

The board is also said to have weighed the cost of continuing the lawsuit and losing the case.

This article first appeared in The Edge Financial Daily, on November 25, 2014.