Port Klang Authority has filed a RM920 million suit against Kuala Dimensi Sdn Bhd and BTA Architect in respect of agreements signed between 2003 and 2006 for work at the Port Klang Trade Zone (PKFZ).

The suit was filed at the Shah Alam High Court this morning. This action followed another suit filed last week for RM720 million against Kuala Dimensi.

In the suit filed today, PKA's application against Kuala Dimensi is to rescind all development agreements and a declaration that Kuala Dimensi was only entitled to be paid the reasonable value of work properly done.

Alternatively, PKA wants a declaration that all notices of payments issued by Kuala Dimensi are null and void.

PKA is also seeking a declaration that Kuala Dimensi is not entitled to, and that PKA is not obliged to pay Kuala Dimensi the claims totalling, RM836,758,459.92, which the latter made for the monsoon drain and water supply works, preliminaries, professional fees, variation works respectively under the development agreements

PKA also wants an order that the works carried out by Kuala Dimensi be re-measured by an independent consultant appointed by the court and the preliminaries and professional fees payable be assessed by the court.

The port authority is also seeking damages for the remedial cost of defective works in the sum of RM33,839,500.00 in respect of the works done under development agreements.

It is further seeking damages for the loss of use of six acres of land used for the construction of a car park for a hotel as a result of Kuala Dimensi's failure to construct a four storey car-park below the hotel lobby.

NONE As for BTA Architect, PKA wants damages for fraud and negligent misrepresentation, with interest and costs.

PKA is also seeking damages for conspiracy against both Kuala Dimensi and BTA Architect.

PKA chairperson Lee Hwa Beng said that the action was filed as the "PKA board is conscious of its duty to do what is right for the port authority and to exercise its duty in an appropriate manner".

More suits expected

The government authority still owes Kuala Dimensi about RM2.8 billion and Lee stated that if the suit is successful, PKA hopes to pay the remaining outstanding balance after deducting the amount awarded by the court.

"We filed the suit from the information we have gathered from all (of our) sources and it is our duty to act on whatever information we have received (therefore) we are basically carrying out our duty", said Lee.

As of now PKA has settled RM1.83 billion to Kuala Dimensi, and Lee hinted that the port authority is expected to file more suits in days to come.

"This is our responsibility, from the information that we have received, we have to act accordingly... if we don't, then we will be failing our duty as board members".

"There has been allegations (in the past) that the previous board was not acting on certain information it received, so it is the same thing now, if we (fail to act now we would be facing) the same allegations", said Lee.

Asked if the suit was to coincide with MCA's upcoming Extraordinary General Meeting (EGM) and to thrust Transport Minister and MCA president Ong Tee Keat's image, Lee said:

"If we don't file the suits, irrespective of EGM, people will accuse me of not acting on behalf of PKA.

"Everyone must remember that PKA does not belong to me. It is a government agency and our funds come from the public and taxpayers... basically I am acting on behalf of the taxpayers", he stressed.

An audit report released by PriceWaterhouse Coopers (PwC) stated that the PKFZ project which was estimated to cost RM2billion ballooned up to a staggering RM12billion.

Recently a super task force was announced by Prime Minister Najib Abdul Razak in order to settle the problems faced by the shipment hub.

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