PKA, KSDB in a tussle over PKFZ lawsuit arbitration

By Lee Wei Lian

PETALING JAYA, Jan 27 — Kuala Dimensi Sdn Bhd (KDSB), the main contractor of the scandal-hit Port Klang Free Zone transshipment hub, now wants the lawsuits that were brought against it by the Port Klang Authority (PKA) to be settled through arbitration but the latter has disagreed.

KDSB has applied to court for an order to stay the proceedings in two of PKA’s lawsuits alleging that the dispute between the parties ought to be referred to arbitration. KDSB’s stay applications in both the lawsuits are fixed for case management on Feb 19. The company also has pending suits against PKA and its auditing firm PricewaterhouseCoopers.

But PKA has obtained an order at the High Court to restrain KDSB from proceeding with the arbitration process pending the court’s determination of their stay applications. KDSB is appealing to the Court of Appeal against PKA’s High Court order.

“We want the lawsuits to be heard in an open court system as the matter is also of interest to the public,” PKA chairman Datuk Lee Hwa Beng (picture) told The Malaysian Insider today.

“It is fairer. If you have arbitration, only one person decides and you cannot appeal,” he added.

KDSB deputy CEO Datuk Faisal Abdullah claims however that they are not trying to delay the legal proceedings but want the matter to be resolved as soon as possible and pointed out KDSB was also taking some risk by pushing for arbitration.

“Arbitration is final. We are taking some risk too as if we lose we cannot appeal. This is the fastest way to resolve things,” he told The Malaysian Insider when contacted. “We want finality.”

PKA has to-date filed four civil suits at the Shah Alam High Court against KDSB, BTA Architect and former PKA general manager Datin Paduka Phang Oi Choo (OC Phang).

The first suit against KDSB was filed last Sept 18, challenging the validity and computation of interest charged by KDSB for the sale of the land to PKA. KDSB has entered appearance to the suit and also filed and served its defence on 4 January this year.

The second suit against KDSB was filed a week later on Sept 25, seeking a declaration that the increase in the interest rate from 5 per cent to 7.5 per cent per annum in respect of a supplementary agreement for additional development works signed in April 2006 is null and void.

A third suit was also filed against KDSB and BTA Architect on Sept 25 that was related to key development agreements and supplementary agreements signed between February 2003 and November 2006, and PKA has sought for declaratory orders and damages against both the defendants.

The fourth suit was filed by PKA on Oct 8 against OC Phang for breaches of fiduciary, contractual and common law duties to PKA. OC Phang has entered appearance to the suit and her defence is due to be filed by Jan 31. OC Phang has in the meantime filed an application in court for discovery of documents. She has also been charged for criminal breach of trust in the PKFZ scandal.

Apart from filing the civil suits in court, PKA has lodged various police and MACC reports and complaints to various disciplinary bodies.

What arbitration ? Only one person decides ? And you cannot appeal, ? What Bullshitt is this KDSB ? deputy CEO Datuk Faisal Abdullah ?

“We want the lawsuits to be heard in an open court system as the matter is also of interest to the public,” PKA chairman Datuk Lee Hwa Beng, that's the way to go man , never give them an inch , they'll have you eaten alive !