Saturday, May 14, 2011

PKFZ suit: 26 ex-PKA board members dragged in

Malaysiakini

Kuek Ser Kuang Keng

May 14, 11 1:43pm




Port Klang Authority (PKA) may have decided not to sue its former board members over the huge losses of the Port Klang Free Zone (PKFZ) project, but former general manager OC Phang intends to drag the board into her legal suit.



Phang's solicitors have filed third party notices against 26 board members during her tenure, including former PKA chairpersons Ting Chew Peh, Yap Pian Hon and Chor Chee Heung, demanding they be brought into PKA's lawsuit against her.
Currently, Yap is Selangor BN publicity chief and Chor is the housing and local government minister.



azlanIn 2009, after initiating investigation into the PKFZ scandal, PKA had sued Phang for breach of duties during her tenure from 1997 to 2008.



While the case was still being heard at Shah Alam High Court, Phang filed the third party notices at the same court on May 5.



"The notices were filed against the board members for their contribution, in respect of the claim made against her by PKA for damages for alleged breach of duties, in relation to actions and decisions made as member of PKA," her counsel K Lavinia told Malaysiakini yesterday when contacted.



Phang was also a board member during her tenure as general manager.



"She claimed that these 26 individuals are also liable for contribution towards the claim, and costs claimed by PKA, as they were members at the material time between 1997 and 2008," Lavinia added.



In other words, should Phang lose the suit she wants all board members to equally share the costs that the court grants PKA .



'12 days to reply'



Lavinia said notices to 11 of the 26 board members have already been served, and they have to reply within 12 days.



PKA received fire for its present board's decision not to act against its former officials over PKFZ's losses.



The decision was made in a meeting on Mac 22 when the PKA board voted 5-2 against taking legal action on the previous board members despite its legal advisor's suggestion the contrary.



Besides a civil suit by PKA, Phang is also being charged with criminal breach of trust and for making false claims over the PKFZ scandal.



Following this, two former transport ministers - Ling Liong Sik and Chan Kong Choy - were charged for cheating over the project.



The PKFZ controversy arose after it was revealed that the development cost of the massive 400-hectare integrated cargo distribution hub spiralled from RM1.9 billion to RM4.6 billion.

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