After a five year legal battle, Port Klang Authority (PKA) the operators of the controversial Port Klang Free Zone, has withdrawn its RM720 million suit against the developer of the project, Kuala Dimensi Sdn Bhd (KDSB).

 

The withdrawal of the suit was made before Shah Alam High Court judicial commissioner Azimah Omar this morning.

 

This follows KDSB agreeing to withdraw its civil suit against PKA, former Transport Minister Ong Tee Keat and former PKA chairperson Lee Hwa Beng for alleged abuse of public office, for the malicious or reckless publication of the Pricewaterhouse Advisory Report. 

 

No order was made regarding costs in both suits.

One of the lawyers for PKA, Lim Chee Wee ( right ), when contacted by Malaysiakini confirmed the withdrawal but said a full press statement will be issued later this afternoon.

 

It was reported on Nov 24 in The Edge Financial Daily that the PKA board, chaired by Kong Cho Ha, had unanimously made the proposal to withdraw this suit against KDSB in a special meeting held in Putrajaya on Nov 21.

Lim had on Nov 24 said the evidence produced before - and findings of fact made by High Court in the criminal trial against former Transport Minister Dr Ling Liong Sik, - have a material impact on the civil suit brought by PKA against KDSB.

The suit is for the recovery of interest paid on the purchase price of the land bought by PKA from KDSB - the turnkey operator.

 

Ling was acquitted of three charges of cheating the Federal Government regarding the PKFZ land deal.

Confident of claim

PKA in a press release this afternoon, said these terms were recorded before Azimah. 

 

It said that when PKA filed its claim against KDSB it was confident of the strength and success of its claim against the turnkey operator. 

 

"In fact, PKA had already managed to successfully resist a striking out application filed by KDSB which was heard all the way up to the Federal Court," said a PKA management spokesperson.

 

"Following the judgment against Dr Ling's criminal trial we moved to withdraw that civil suit as it has a material impact on this civil suit," he added. 

 

PKA filed the suit against the PKFZ developer on Sept 18, 2009, and this included a rectification of the Sale and Purchase Agreement dated Nov 12, 2002, executed between the two parties. 

 

PKA believed that the rectification it sought embodied the actual agreement and true intention of the parties. Where it believed the purchase price of RM25 per square foot of the land had already included interest, as per the valuation dated Sept 29, 2000 by the Ministry of Finance's Valuation and Property Services Department. 

 

Impact of Ling's judgment

 

The testimonies of material witnesses in Ling's criminal trial and findings of fact made by Justice Ahmadi Asnawi in his judgment on Oct 24, 2013, have had a material impact on this civil suit. 

 

Ling ( right ) was acquitted of three charges of cheating.

The judge ruled that there had been no concealment, deception, misrepresentation, or inducement committed by the former transport minister with respect to the interest element, payable in connection with the purchase of the land. 

 

The law firm of Messrs Skrine was engaged to conduct a thorough analysis of the High Court's judgment and notes of proceedings to determine the extent of the impact of the verdict on the civil suit. 

In the meantime, PKA successfully managed to resist another striking out application filed by KDSB, this time based on the High Court Judgment in Dr Ling’s trial. 

 

However, having received its solicitors’ written opinion, it became  clear to PKA that PKA’s probability of success in pursuing this civil suit at full trial had been severely weakened by the testimonies of material witnesses, and findings of fact made by the High Court judge in the Dr Ling trial.

 

The PKA statement further noted the withdrawal of the civil suit would have no material bearing on PKA’s claim in other civil suits filed, whether against KDSB or any other party.