Asset Recovery: Malaysia seizes aircraft in corruption investigation
The investigation into the Port Klang Free (trade) Zone has come a step closer to serious investigation with the announcement that the Malaysia Anti Corruption Commission has created a special team to conduct the investigation: and staffed it with 30 people. Already things are happening.
As the investigation develops, the Anti Money Laundering Act has been invoked to order the seizing of two aircraft belonging to a Wijaya Baru, the parent company of Kuala Dimensi Sdn Bhd, the contractor which is blamed for time and cost over-runs in relation to the PKFZ.
It's not just the planes: land and cars have also been made subject to freezing orders, some of which are believed to be in the name of TIONG King Sing, the CEO of Kuala Dimensi.
The aircraft made subject to the orders are
a) Learjet 60
b) Gulfstream IV.
The investigation into the the PKFZ debacle began in earnest in June this year, when it came to light that the PKFZ was nowhere near ready, was hugely overdue and that it had bust its budget in the most spectacular style.
The contractor had, it was said at the time, refused to continue work because it had not been paid for the work done so far. PKFZ countered by saying that the moneys paid to the contractor exceeded the value of the work actually done. Disputes were also raised as to the work and payment of BTA Architects.
For its part, the Port Klang Authority, which commissioned the work, says that the original budget was MYR2,000 million. It dragged on, and the costs increased to an estimated (but still incomplete) MYR4,600 million.
The Port Klang Authority, under fire for its spending and failure to deliver, filed police reports alleging fraudulent claims in overbilling amounting to MYR1,000 million - and alleging conspiracy to defraud.
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