EX-SELANGOR MB SHOCKED AT RM16m PAYMENTS TO JANA NIAGA
Khalid willing to help MACC get to bottom of Jana Niaga ‘fiasco’
FORMER Selangor menteri besar Tan Sri Abdul Khalid Ibrahim is shocked that the state paid a company for a contract terminated during his time. He said the state terminated its contract with Jana Niaga Sdn Bhd in 2013.
Among other things, he said Jana Niaga was contracted to construct, operate, maintain and manage Universiti Selangor’s (Unisel’s) student and staff accommodation in 2003.
In 2011, he said, it was discovered that the hostel had serious defects, including engineering and foundational issues that posed safety risks.
“Unisel then stopped making payments to Jana Niaga,” Khalid added in a statement yesterday.
Selangor Menteri Besar Incorporated (MBI), Unisel and Jana Niaga came under the spotlight on Tuesday, when the Malaysian Anti-Corruption Commission (MACC) initiated investigations into two suspicious payments totalling RM16 million.
It was reported that MBI had made the payments to Jana Niaga, even though its contract to maintain the hostel at Unisel’s main campus in Bestari Jaya, had allegedly been terminated in 2012.
The payments were believed to have been made in two instalments — RM10 million in 2015 and RM6 million last year.
Khalid said Jana Niaga was also found to have defaulted on its obligations to maintain the accommodation in 2012.
He said the facility had to be vacated on Jan 2, 2013, and steps were taken pursuant to the contract with Jana Niaga for the issues to be remedied.
“However, there was no satisfactory resolution,” he said.
Khalid said the contract with Jana Niaga was terminated for breaches of the same in 2013, but the company disputed the termination.
He said it must be noted that Jana Niaga had attempted to bring its case against Unisel to the courts.
He said the Shah Alam High Court, on Dec 7, 2012, stayed Jana Niaga’s case because the contract had an arbitration clause, which meant that the proper forum of the dispute was in arbitration and not in the court.
Subsequently, he said Jana Niaga appealed the High Court’s decision before it was dismissed by the Court of Appeal on July 2, 2013.
Khalid said, to his knowledge, no arbitration proceedings had been brought by Jana Niaga against Unisel and more than four years had passed.
Khalid added that about eight months after the Court of Appeal’s decision around March 2014, Jana Niaga had referred the case to the Dispute Resolution Committee.
“Up to the time I left office as menteri besar, there was no resolution to the dispute. If required, I will extend my full cooperation to MACC to get to the bottom of this fiasco that has tarnished the good name and reputation of our state institutions,” he said.
In Putrajaya, MACC recorded statements of four MBI officers. MACC deputy chief commissioner (operations) Datuk Azam Baki said more witnesses would be called up to assist in the investigation.
Meanwhile, Selangor Menteri Besar’s Office strategic communications director Yin Shao Loong told NST that there was no new contract between Jana Niaga and Unisel.
“The two parties are engaged in a dispute settlement process. The former menteri besar should refer to more reliable sources before making speculations,” she said.