Former Port Klang Authority (PKA) general manager OC Phang told the High Court that the development agreement for the Port Klang Free Zone project was approved in 2003 and 2004 by the prime minister at the material time.

Phang, who is being sued by PKA, said two supplemental agreements also received the approval of the prime minister in 2004.

“The defendant was at all times subject to the decisions and directives issued to her by the Transport Ministry, Finance Ministry, cabinet and the prime minister,” she said in her statement of defence which was sighted by Malaysiakini.

Although Phang never named the prime minister, the PKFZ’s development agreement that was signed on Feb 27, 2003 when Dr Mahathir Mohamad was still premier.

The supplementary agreements were dated March 27, 2004 when Abdullah Ahmad Badawi had already taken over as prime minister.

The 2003 agreement had involved PKA’s appointment of Kuala Dimensi Sdn Bhd (KDSB) as the turnkey developer to develop Phase 1 of PKFZ, comprising 400 acre land with a total development costs of RM585 million.

The supplemental development agreement KDSB work scope into a single phase project with a developmental costs of RM1 billion excluding professional fee, variation order and chargeable interests.

The supplemental land agreement, which bore the same date, details PKA and KDSB agreement to expand PKA's commitment to engage KDSB to develop PKFZ at a cost of between RM350 million to RM400 million for the first 400 acres and up to RM1 billion for the rest of the land.

Earlier today, PKA's lawyer Lim Chee Wee told the court that the his client was suing Phang for breach of fiduciary duties which led to eight key agreements being signed. He further list 15 examples of such breaches.

Detailed discussions

Phang, in her defence statement, added that she was answerable to the PKA chairperson, its board, Transport Ministry and Finance Ministry.

She said that all decisions went through many levels of detailed discussions with the relevant stakeholders.

“These decisions were at all material times approved by the Transport Ministry, Finance Ministry, cabinet and the PM,” she said.

She also claimed that action taken against her was selective prosecution, as the plaintiffs had disregarded the functions and collective responsibilities of the PKA board members.

Phang alleged the PKA board were aware and had full knowledge of the eight key agreements.

The additional development works agreement, valued at RM510.38 million, was entered on Nov 30, 2005, after Abdullah had communicated his approval, she said.

Phang further maintained that she had acted within her scope of her duties in relation to the eight key agreements.

The hearing officially begins tomorrow at the Shah Alam High Court, with former PKA chairperson Lee Hwa Beng taking the witness stand.

Phang is represented by lawyer Matthew Thomas Philip.