Kuala Dimensi Sdn Bhd (KDSB) has today asked whether the Port Klang Authority (PKA) is about to breach their contract with them following a law suit filed yesterday.

The port authority has lodged a suit against KDSB to seek a refund of RM720 million in allegedly overcharged interest.

kuala dimensi kdsb pc on pkfz report 290509 faizal abdullah 01 "Is this a new leadership under PKA chairperson Lee Hwa Beng (who) tramples and revokes the laws of contract or agreement in Malaysia when necessary?" asked KDSB deputy chief executive officer Faizal Abdullah ( left ) in a statement today.

"If so, who dare to take the risk to invest or to be appointed as contractor of PKA in future as the authority can anytime terminated the project or refusing to pay accordingly to agreement?" the statement said.

KDSB is the turnkey developer of PKFZ appointed by PKA in 2003 to develop a 1,000 acres state of the art shipping hub next to the Klang North Port.

Why only now?

Faizal said he was deeply disappointed by Lee's accusations yesterday which disputed the computation of interest, thereby ignoring the contract for possible "hidden and unscrupulous" reasons.

He said under the agreement, PKA should pay an annual fee of KDSB RM150 million over a 15-year period for the project.

"However, PKA only started to pay since 2007 whereby the company was yet to collect the deferred payment in full.

"As such, where is the basis of false computation of interest at RM720 million come from?" he asked.

Faizal added that should there be a dispute, PKA could have initiated discussions according to the terms of the contract.

"For the past six years, there wasn't any dispute brought to our attention, whereby we are shocked when the matter was taken to court," he said.