The federal government has seized more than RM32 million in cash, almost RM550,000 in cheques and four plots of land in a case related to the Port Klang Free Zone (PKFZ) scandal.

azlan Having used provisions in the Anti-Money Laundering and Anti-Terrorism Financing Act in the action, the government is now moving towards forfeiture of the items - believed to be one of the biggest of such hauls.

This information came to light in the High Court in Kuala Lumpur today when a case of money laundering was brought against nine respondents allegedly involved in the PKFZ scandal.

The judge, Justice Ghazali Cha, fixed Sept 27 for the exchange of further affidavits by the parties in the case.

The federal government was represented by Anselm Charles Fernandis, the head of the Anti-Money Laundering and Forfeiture Unit of the Attorney-General’s Chambers and DPP Robert Pasang.

Nine companies, individuals named

The government had obtained a court order to seal the assets between Dec 31, 2009 and May 14, 2010. The plots of land are located in Klang (one), Shah Alam (two) and Kota Kinabalu (one).

Two jet aircraft, a Gulfstream G450 and aLear Jet 60, believed to have been acquired through money laundering activities, were also seized but it is learnt the two airplanes have since been reclaimed.

NONE The government in the court order named nine companies and individuals, including Kuala Dimensi Sdn Bhd (KDSB) as the first respondent, and Sarawak-based politician Tiong King Sing ( left ) as the seventh respondent.

Tiong, who is Bintulu MP and from the Sarawak Progressive Democratic Party, is a former owner of KDSB, the turnkey contractor of the PKFZ project.

The other respondents are Transhipment Megahub Bhd, Coastal Skyline Sdn Bhd, Vijaya Baru Aviation Sdn Bhd, Vijaya Baru Sdn Bhd, Vijaya Baru Construction Sdn Bhd, Perbadanan Kemajuan Negeri Selangor (PKNS) and Law Ka Hing.

All in, there were 19 items, including cash, that have already been seized by the government under the forfeiture law.

Among the lawyers representing the nine respondents are K Kumaraendran, C Vijayakumar and Shamsul Sulaiman.

Of the total RM32,293,006.06 in cash seized, more than RM30 million was from KDSB. The other movable and immovable assets, including land, were seized from the other respondents, including two items from PKNS.

Scandal that captured the nation

Today is also the first day of the trial of two former KDSB senior officers, its former chief operating officer Steven Abok and former project manager Law Jenn Dong. A third person on trial is BTA Architect's Bernard Tan Seng Swee.

The three are facing charges of making false claims, before the sessions court in Klang.

The PKFZ scandal surfaced in 2009, after it was discovered that the cost of the project had ballooned from RM1.96 billion when the free trade zone was conceived in 2001 to a staggering RM12 billion.

NONE This was according to a report prepared by PriceWaterhouse Coopers (PwC), which was released in 2009.

The project spans a 405-hectare facility comprising 512 warehouses, 2,000 covered parking lots, four buildings, an exhibition centre and a four-star hotel.

Besides the high costs that raised criticisms from opposition politicians, the report also made some disturbing findings, including:

  • The land was purchased by PKA at a price of RM25 per square foot (psf) on the basis that the land was of special value, despite the Valuation and Property Services Department having valued the land at RM10.16psf in August 2001; and
  • The report noted several weaknesses in the governance and management of the project.

Besides Abok, Law and Tan, former Port Klang Authority (PKA) general manager OC Phang is also facing three charges of criminal breach of trust.

Two former transport ministers, Dr Ling Liong Sik and Chan Kong Choy, also are facing charges of cheating the Cabinet, resulting in the losses.

There are also on-going civil suits filed between KDSB and the PKA.

It is learnt the seizure of the money and assets followed an in-depth investigation by the police and the Malaysian Anti-Corruption Commission.

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