The Works Ministry is determined to act, including initiating legal action, against the directors of property developer Perangsang International Sdn Bhd (PISB) for failing to complete on time the construction of the Malaysian External Trade Development Corporation (Matrade) building.

Its minister S Samy Vellu today said although PISB was defunct now, the ministry had no intention of remaining silent although it was aware that compensation claims cannot be made.

"The ministry will get the opinion of the attorney-general. Although the company does not exist anymore, we will go to the court and take action against the directors of the company," he was quoted as saying by Bernama .

The project has been finally completed after being delayed for nine years, during which cost of construction went up by 70 percent.

Samy Vellu said he personally had investigated the company and its directors and all evidences gathered would be produced in the event of a court hearing.

He did not give further details of the matter but disclosed that in 2004, the shares of PISB were sold to Tajuk Modal Sdn Bhd.

"They cannot just run away after a major thing (blunder) and not take the responsibility," he said.

Linked to S'gor govt

Work on the Matrade building was started in 1994 with its completion scheduled in 1997, but due to several delays and the appointment of a new contractor, the original cost of RM167 million shot up to RM287.5 million, with RM64.8 million spent on repairs.

The original contract to PISB, was terminated last March and it was ordered to pay late delivery charges of RM41,750 a day for 2,276 days.

PISB was a subsidiary company of Kumpulan Hartanah Selangor Bhd (KHSB), an investment company of the Selangor state government.

The building was finally completed by Rotol-AMS-Bumi Technologies Sdn Bhd and Syarikat Pembinaan Anggerik Sdn Bhd together with NSC Mekanikal Fastcoll Corporation Sdn Bhd.

Asked on whether the case would be taken up to the cabinet, Samy Vellu said: "I feel there is no need as this is part of work the ministry has to settle by itself."

Check for misappropriation

Meanwhile, International Trade and Industry Minister Rafidah Aziz expressed her regret that her ministry had to bear heavy losses due to the delay in the handing over of the building.

She said besides having to bear the cost of renting elsewhere, Matrade also lost out in terms of opportunity cost where the total rental earnings from the building's exhibition space has been estimated at about RM120 million.

This RM120 million amount is equivalent to the cost of building another 24-storey building, she quipped.

As a client, Rafidah said she was disappointed and wanted the Works Ministry to not only take action against the former PISB directors but also look into the probability of any misappropriation during the tender process.

While waiting for its new building, Martrade rented its premises at Wisma Sime Darby and also a small exhibition hall at Wisma PKNS, Jalan Raja Laut.

Matrade staff are expected to move into the new office beginning July.