State-linked company PKNS Holdings did not breach employment contracts when it let go of 20 contract workers yesterday, said its parent company Selangor State Development Corporation (PKNS) today.

In a statement, PKNS said that the contracts were terminated in a "restructuring operation" as there were redundancies found between the contract workers and permanent staff.

It said that the 20 contract workers, who were hired by PKNS Holdings and seconded to PKNS as early as 2010, assist in new departments including the marketing, business development, media and strategy, investment and organisational mangement and integrity departments.

"However, after reviewing this, PKNS found that there is no need to extend the contracts of the 20 officers as the skills and experiences they offer already exist among PKNS permanent staff.

"As such, PKNS subsidiary PKNS Holdings decided to terminate their services in accordance with their employment contracts," it said.

PKNS added that the restructuring was done to ensure greater efficiency and "value for money" operations.

Bernama yesterday reported that more than 20 PKNS staff were given 24-hour termination notices in a restructuring exercise.

Last month, PKNS was caught in a political feud between Selangor PKR chief Azmin Ali and Selangor Menteri Besar Abdul Khalid Ibrahim.

Abdul Khalid's administration was accused of having a hand in the termination of Azmin from the PKNS board of directors. The position is a political appointment.

State executive council papers declassified by the MB showed that the exco in fact had yet to make a decision over whether Azmin should remain on the board.

As a result, PKNS general manager Othman Omar and executive secretary Norita Abdul Sidek were transferred from their posts pending an internal investigation on the matter.

However, Azmin has not been reappointed.