Published: Wednesday June 29, 2011 MYT 8:53:00 PM

PKFZ scandal: First phase cost RM400mil, court told

By NURBAITI HAMDAN

SHAH ALAM: The first phase of the Port Klang Free Zone (PKFZ) development project cost RM400mil, the Sessions Court heard Wednesday.

Port Klang Authority (PKA) legal adviser Fazilah Surkisah Mohammad, 46, said the first phase involved a high-tech office, transhipment facilities, light and medium industries, warehouse and other components, which was a part of the six development agreements signed by the PKA.

Fazilah added that the project was developed on land that the PKA had bought from Kuala Dimensi Sdn Bhd (KDSB).

She was the second prosecution witness to testify on the second day of the trial of former Kuala Dimensi project director Law Jenn Dong, 52, chief operating officer Stephen Abok, 52, and architect Bernard Tan Seng Swee, 49, of BTA Architect, who are accused involvement in the PKFZ financial scandal.

Kuala Dimensi was the turnkey developer for the PKFZ project while BTA Architect was the project consultant.

Law, Tan and Abok face multiple charges of cheating the PKA over electrical infrastructure work done for PKFZ.

The case came to light after the cost of developing the 400ha integrated cargo distribution hub ballooned from RM2bil to RM4.6bil.

During the examination-in-chief by deputy public prosecutor Dzulkifli Ahmad, Fazilah said the idea behind PKFZ was to emulate the success of Jebel Ali Free Zone in Dubai, United Arab Emirates.

"The project was mooted by the then Transport Minister who went on a trip to Dubai in 1997.

"He had wanted the same concept for Port Klang, to turn it into a centre for cargo and to increase the volume and total of trade through Port Klang," she said.

Earlier, Companies Commission of Malaysia assistant registrar Salmah Hanum Ibrahim, 31, told the court that for information filed to the commission, it was common for a company to use its secretary's address as the company's business address.

When cross-examined by Laws defence counsel Tan Hock Chuan, Salmah confirmed that one Loh Yin Fun was the same secretary for four companies - Wijaya Baru Sdn Bhd, Valid Ventures Bhd, Free Zone Capital Bhd and PKFZ Sdn Bhd.

On Tuesday, Salmah testified that Kuala Dimensi and Wijaya Baru shared the same registered address in Kelana Jaya and same business address in Jalan Templer, Petaling Jaya.

She also agreed that Valid Ventures and Free Zone were fully owned by OSK Trustees Bhd.

On Nov 8, 2009, Law, Abok and Tan pleaded not guilty to 24 alternative charges of cheating OSK Trustees involving payment of RM116.85mil to Kuala Dimensi for two projects at PKFZ.

Abok and Tan pleaded not guilty to two other alternate charges of cheating OSK Trustees by dishonestly inducing OSK Trustees into believing that the 33KV system to Precinct 2 and Precinct 8 for the PKFZ project had been implemented.

The action resulted in OSK Trustees making payment of RM5.42mil to Kuala Dimensi.

Prior to this, Abok and Tan pleaded not guilty to two counts of cheating PKA by making false claims amounting to RM5.42mil on July 31 and Sept 21, 2007.

Tan and Law are charged with 24 counts of cheating PKA to obtain RM116.85mil for Kuala Dimensi involving two projects between June 30, 2006 and May 30, 2008.

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