JKP Sdn Bhd, the government-linked company accused of conflict of interest, has refuted the allegations by PKR secretary-general Saifuddin Nasution.

In a press conference in Penang yesterday, Saifuddin claimed that the firm's CEO dished out RM3 million worth of projects to a private company of which, the latter is also a director, hence the allegation of conflict of interest.

Today, JKPSB chairperson Zainal Abidin Osman said the CEO of the firm in question, Samrulzaman K Mohideen was only appointed to his post in May this year.

"We have not received any official complaints about the CEO," said Zainal, who also chairs the Penang Bumiputra Development Council.

"But this matter was brought up in the social media since October, via a video clip by one Sanjay Subramaniam who lodged a report with MACC on Oct 31.

"Since then, the JKPSB board of directors in a meeting chaired by me on Oct 30, has formed an internal committee to investigate the allegations against the CEO," added Zainal, who is also Penang Umno liaison committee chief.

"The internal committee comprises of three JKPSB board of directors, who has advised the CEO to go on leave, pending the investigations," Zainal added.

Zainal noted that Samrulzaman had also taken legal action against Sanjay for defamation on Nov 6.

Samrulzaman told Malaysiakini yesterday that the matter was an "old story" but preferred to reserve comments about the claims made by Saifuddin (photo).

Zainal said Saifuddin's claims are based on the same allegations by Sanjay, who is also a PKR member.

He added the internal probe will be completed in two weeks, pending the availability of the relevant documents.

"The result of the internal probe will be reported to the board of directors who are expected to meet soon," said Zainal.

"Up to now, MACC or the Police Commercial Crime Unit has yet to call any of the directors, officers or staff of JKPSB for questioning to assist in the probe," Zainal claimed.

"We will give our full cooperation to the authorities including providing them with a copy of our internal probe report and other necessary documents related to the case," he added.

The Penang Bumiputera Development Council was formed 40 years ago to help bumiputeras in the fields of economy, housing, education and human capital.

JKP was established on July 12, 1995 under the Ministry of Finance Incorporated.

For 17 years, the government-linked company has developed about 20,000 units of low, low-medium, medium cost and affordable housing units.

Zainal said contractors working with the firm were appointed based on an open tender system.

"Saifuddin, who is the strategic director to Lim Guan Eng, need not worry about this case, as the MACC will probe and if there were any wrongdoings, those involved will be charged in court," he said.

"He should worry more about his boss, who was probed and charged for corruption.

"The tactic of delaying the case based on technical excuses is perceived negatively by the people of Penang," he quipped.

In June last year, Lim and businesswoman Phang Li Koon were charged with two counts of graft related to the conversion of land from agriculture to commercial, and the chief minister's purchase of a bungalow on Jalan Pinhorn, allegedly below market value.

Lim insisted that the charge was a political conspiracy to topple him, saying the bungalow was bought frpm a willing seller (Phang).