SHAH ALAM: The Shah Alam High Court has given the Port Klang Authority (PKA) until Monday to settle a RM720 million suit filed against turnkey contractor Kuala Dimensi Sdn Bhd (KDSB), failing which it will proceed with the trial. Judicial Commissioner Datuk Azimah Omar issued that ultimatum yesterday as the matter had been dragging on for some time.

“This is the third time the matter is before me. I had fixed the case for trial but parties inform me now that it is for settlement,” she said in response to lawyers asking for a short adjournment. She fixed Monday for them to either record a settlement or be prepared to go to trial.

Earlier, lawyer D Nimalan, who appeared for PKA asked a short adjournment as the counsel handling the matter is overseas.

“It is not that we do not want to settle the matter but could not get the parties together to negotiate,” he told Azimah.

Lawyer Chetan Jethwani, who represented KDSB, later told reporters that PKA had submitted a proposal to settle the suit and other cases pending in the Kuala Lumpur High Court.

“We obtained the proposal last week but I will have to get back to my client this week for instructions,” he said.

On Nov 24, PKA counsel Lim Chee Wee, from legal firm Skrine & Co, said the court will have to be informed if there is withdrawal of the suit. In a statement to the The Edge Financial Daily, Lim said the evidence produced and findings of facts made by a High Court judge in the criminal trial against former transport minister Tun Dr Ling Liong Sik had a material impact on this suit.

Ling was acquitted of three charges of cheating Putrajaya regarding the Port Klang Free Zone land deal. The Edge Financial Daily had reported 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 unanimously agreed to discontinue the suit in a special meeting in Putrajaya on Nov 21.

It was also decided at the meeting that it would initiate negotiations with KDSB for it to withdraw its suit against PKA.

PKA filed the 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 each square foot of the land should be RM21 and not RM25. It also said 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 its 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.

PKA is said to have written to the Attorney-General and the ministry for their advice.

The Edge Financial Daily also reported that the advice to withdraw was because of implications from Ling’s criminal trial.

It is learnt that some of the witnesses in this suit were the same and the acquittal had seriously impacted the decision. The board is also said to have weighed the cost of continuing the lawsuit and losing the case.

It is said that some RM3 million had already been spent on the PKA cases and up to RM1.5 million may be incurred on this case alone. — The Malaysian Insider

This article first appeared in The Edge Financial Daily, on December 3, 2014.