Selangor State Development Corporation's (PKNS) audit department will seek information from its former directors Azmin Ali and Norazlina Zakaria over a legal tussle involving the lucrative PJ Sentral project.

 

In a press release today, acting PKNS general manager Azlan Md Alifiah said the firm required information from the duo to help PKNS build its case for an appeal against a court decision that went against PKNS.

 

This is part of PKNS' internal investigations regarding the PJ Sentral deal.

 

On Feb 27, the Kuala Lumpur High Court dismissed the PKNS suit against Nusa Gapurna Development Sdn Bhd (NGD) and Malaysian Resources Corp Bhd (MRCB) for alleged breach of contract over stakes in PJ Sentral Development Sdn Bhd.

 

NGD owns a 70 percent stake in PJ Sentral Development Sdn Bhd while the balance is held by PKNS' subsidiary PKNS Holdings Sdn Bhd (PHSB).

 

The PJ Sentral project - which according to The Edge has a gross development value of RM3 billion - was initiated during BN's administration of Selangor.

 

Initially, the entire project was to be undertaken by NGD, who in return will build an office block for PKNS and provide cash payments.

 

How is Azmin involved?

 

Upon Pakatan Rakyat taking the reins in 2008, the terms of the contract were renegotiated, resulting in PKNS having a 30 percent stake through PHSB.

 

In early 2013, NGD was acquired by MRCB, but its stake in PJ Sentral Development Sdn Bhd was to be sold to MRCB in a separate deal, which PKNS is now disputing and is trying to buy back the 70 percent stake.

 

According to a report by The Edge on Aug 8, 2013 Selangor Menteri Besar Abdul Khalid Ibrahim ( left ) wanted the state to take control of the entire project but was no longer a party to it.

 

The PJ Sentral project involves about 10 acres (4 hectares) of land in Section 52, Petaling Jaya. Plans for a hotel and several commercial buildings have been approved.

 

According to Azlan, Azmin and Norazlina were PKNS's representatives in PHSB, but did not state their involvement in the deal. The duo joined PKNS' board in 2011 and 2012 respectively. Azmin was dropped as a board member on Jan 11.

Previously, 19 contract staff in PHSB were abruptly sacked , prompting claims that they were culled as a result of a feud between Khalid and Azmin, who is the Selangor PKR chief, Bukit Antarabangsa state assemblypersona and Gombak MP.