The Port Klang Authority (PKA) has won its appeal against the Shah Alam High Court’s decision to strike out its suit against Kuala Dimensi Sdn Bhd (KDSB).

The decision was made at the Court of Appeals today by the three-member bench comprising Justices Low Hop Bing, Balia Yusof Wahi and Mohtarudin Baki.

The PKA’s lawyer Cindy Khaw told Malaysiakini that the case will be reinstated in the High Court, to be heard by a judge other than Justice Zaleha Yusof who had struck out the case.

azlan The PKA is the statutory body governing Port Klang Free Zone (PKFZ) while KDSB was the turnkey contractor for the PKFZ project - a mega-scandal that saw two former ministers being charged in court and millions of ringgit of public funds allegedly being siphoned off.

PKA had filed the suit on Sept 18, 2009 against KDSB, to claim interest under the sales and purchase (S&P) agreement dated Nov 12, 2002. KDSB applied to strike out the suit on May 3, 2010.

The purchase price for the 999.5 acres (400ha) of land worth RM1.088 billion, was calculated at RM25 per square foot with annual interest of 7.5 percent over 15 years.

The PKA claimed that no interest was chargeable on the balance of the purchase price under the S&P on the basis that the agreement had been drawn up and signed by all parties under a mutual mistake of fact.

It had relied heavily on the letter dated Sept 29, 2000, from the Valuation and Asset Services Department to the Transport Ministry, contending the special value of RM25 psf had taken into account the interest element.

By reason of the alleged mutual mistake of fact, PKA sought a declaration that no interest was chargeable on the balance of the purchase price under the S&P, and sought an order to rectify the agreement to reflect this.

The PKA is also seeking RM324.25 million in repayment from KDSB.

However, the Shah Alam High Court on Feb 7, 2011, allowed the KDSB’s application.

Prosecutions underway

Several senior personnel in KDSB including its former general manager, OC Phang , have been charged with three counts of criminal breach of trust.

NONE Others hauled in were former consultant and architect Bernard Tan and former project manager for PKFZ, Law Jenn Dong, who have been separately charged with 24 counts of making false claims, and former chief operating officer Steven Abok, who faces two charges of making false claims.

Former Transport Minister Dr Ling Liong Sik (right) , was charged with misleading the cabinet with regards to the land deal, and has been ordered to enter his defence.

His successor Chan Kong Choy was also charged with three counts of cheating then premier Abdullah Ahmad Badawi.

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