Port Klang Authority bought encumbered property from Kuala Dimensi Sdn Bhd ?

The Port Klang Authority (PKA) bought land meant for the Port Klang Free Zone (PKFZ) well aware that it was encumbered property. This, say government sources, is highly irregular as anything the government and its agencies buy must have a clean title.

PKA entered into discussions with Kuala Dimensi Sdn Bhd (KDSB) in 2001 to buy 404ha. At RM25 per sq ft, the deal was worth over RM1 billion.

On inking the sale and purchase agreement in late 2002, PKA paid 10% of the purchase price.

The state government had originally alienated the land to the Pulau Lumut Development

Co-operative (KPPL) which in turn sold it to KDSB for RM3 per sq ft.

It was noted that the chairman of KPPL at the time of the sale – Sementa Assemblyman and State Executive Councillor Datuk Abdul Rahman Palil – was also a director of PKA.

When the sale to PKA became public knowledge, several members of the co-operative put private caveats on the land to prevent any sale without their interests being considered.

Besides, at the time of the PKA-Kuala Dimensi deal, there were at least “five or six” further interests registered on the titles by mortgagors.

Several months after the purchase, the government and PKA were advised that misrepresentation had been made in the deal and that it was not a “willing buyer, willing seller” arrangement, as KDSB could not transfer the land free of encumbrances.

However, KDSB director Faizal Abdullah told theSun that the transfer took place within a year of the signing and PKA owns 100% of the land. “Anyone who says otherwise is lying,” he said when contacted.

Meanwhile, KDSB was also appointed – via direct negotiations – as the turnkey contractor to design and build the infrastructure and complete the free zone.

Source: The Sun

Read:

PAC calls for hearing on RM4.6b PKFZ

Chan Kong Choy and Port Klang Free Zone, a MYR4 billion white elephant ?

Chan Kong Choy: we will improve system so that it is more efficient

We are still waiting for Chan Kong Choy’s report on LRT breakdowns (promised on 31 Oct 2006)

Chan Kong Choy did not reply to Jafza re Port Klang Free Zone difficulties

Names so far:

Faizal Abdullah – Kapar Umno Youth Chief

Datuk Abdul Rahman Palil – Sementa Umno assemblyman, State Executive Councillor

Ling Liong Sik – former MCA president

Chan Kong Choy – MCA vice-president

Posted in jijik, umno, [s]Port Klang Free Zone
3 comments on “Port Klang Authority bought encumbered property from Kuala Dimensi Sdn Bhd ?
  1. […] Faizal Abdullah – Kapar Umno Youth Chief […]

  2. […] Kuala Dimensi Sdn Bhd, a name that keeps cropping up in the MYR 4 billion Port Klang Free Zone scand… […]

  3. […] ministry issued “letters of support” which were used by the turnkey contractor – Kuala Dimensi Sdn Bhd (KDSB) – to raise bonds and get an AAA rating from the Malaysia Rating Corporation […]

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