Kuala Dimensi Sdn Bhd (KDSB), one of the key developers of the Port Klang Free Zone (PKFZ) project, has taken out ads in various Chinese newspapers, claiming that allegations made in a report released by international audit firm PricewaterhouseCoopers (PwC) are false and have seriously damaged their reputation.

In the ads, carried in the financial sections of Oriental Daily News, Sin Chew Daily, Guang Ming Daily, China Press and Nanyang Siang Pau, Kuala Dimensi group deputy CEO Faizal Abdullah claimed that after the audit report was released, the public confidence in the company has fast dwindled.

kuala dimensi kdsb pc on pkfz report 290509 faizal abdullah 01 The ads, which cost between RM10,000 to RM20,000 each, also said that a small bank loan application of RM160,000 was even rejected as a result of the report.

According to Faizal (left) , PwC was clearly aware of the fact that PKFZ was not a project that meant for any 'public utility or purpose'.

Yet, he said, the accounting firm still stated in their report that if the land had been acquired for public use, the Port Klang Authority (PKA) - which manages PKFZ - could have saved up to RM5.6 billion. This gives the impression that KDSB had earned an extra amount of RM5.6 billion.

Under section 3 (1a) of the Land Acquisition Act 1960, the government has the right to acquire land for any 'public purpose'.

Section 3 (1b) of the act allows the government to acquire land for 'any purpose which in the opinion of the State Authority is beneficial to the economic development of Malaysia'.

The act also empowers the authorities, in section 3 (1c) to acquire land for 'residential, agricultural, commercial, industrial or recreational purposes or any combination of such purposes.'

Faizal added that the PKFZ project was related to commercial use, hence the government could only rely on section 3 (1b) or 3 (1c) of the Act .

He pointed out that under section 3 (6) of the same act, land obtained by a company to develop any land not related to public use, can no longer be acquired the state authorities or government.

No big profits

Faizal also denied speculation in the ads that KDSB had made a huge profit in the PKFZ project.

He said that KDSB had offered the PKA a much lower price for the first phase of development plan, which amounted to RM 10 billion compared with the RM 16 billion calculated by the Transport Ministry and PKA.

kdsb advertorial on pkfz controversy in chinese newspaper 150609 Faizal also denied allegations in the PwC report that KDSB "may have" overcharged PKA for interest on deferred payments amounting to RM51 million in connection with the land sale.

He said that the report had given the impression that the company had been extorting money and that consequently banks were losing confidence in KDSB.

According to Faizal, KDSB recently worked on a RM 2 billion project but when it tried to obtain a loan of RM 160,000, the application was rejected. No reasons were given for the rejection.

Faizal said that he is very confident that KDSB never overcharged the PKA and he has consulted four accountants, and all of whom have verified that there was nothing amiss with the interest charged.

Faizal also expressed regret that the matter was politicised and alleged that several individuals had gained from the PwC report.