KUALA LUMPUR, MALAYSIA - Police have ordered a bank to freeze about RM140 million (S$57.2 million) in the account of Kuala Dimensi Sdn Bhd, the turnkey developer of the controversial Port Klang Free Zone project.
It is learnt that Commercial Crimes Investigations Department (CCID) officers have asked the bank to freeze the account as the money is believed to have been derived from the Port Klang Free Zone project.
Sources said the CCID officers were also believed to have traced several hundreds of millions more in another account and were making arrangements to freeze that account too.
It is learnt that the CCID officers invoked Section 44 of the Anti-Money Laundering Act to freeze the account pending investigations.
Inspector-General of Police Tan Sri Musa Hassan also briefed Prime Minister Datuk Seri Najib Tun Razak on the PKFZ investigations yesterday.
Police investigations were initiated following a report lodged by Port Klang Authority (PKA) chairman Datuk Lee Hwa Beng.
"We are going through all documents pertaining to the project to ascertain if there are any shoddy dealings or misappropriation of funds or any other criminal offence.
"A special task force has been set up specifically to investigate the matter, and we need time to go through every document," he said.
Musa said his officers would be calling up the parties involved.
He urged those to be called up to cooperate to ensure a speedy investigation as it was of public interest.
Meanwhile, Deputy CEO of Kuala Dimensi Sdn Bhd Datuk Faizal Haji Abdullah said in a statement: "KDSB (Kuala Dimensi Sdn Bhd ) confirms that several of its accounts have been frozen. The accounts were frozen late yesterday afternoon.
"We regard this as part of the investigation process and we are giving our fullest cooperation to the police. In the meantime, KDSB is taking advice on the legality of the freezing orders."
A task force, set up by the Transport Ministry had on June 10, found possible fraud, including overcharging and unsubstantiated claims running into hundreds of millions of ringgit by Kuala Dimensi.
The eventual amount in dispute could run up to as much as RM1 billion.
Kuala Dimensi chief executive officer is Bintulu MP Datuk Seri Tiong King Sing, is treasurer-general of the Sarawak Progressive Democratic Party. Kuala Dimensi's deputy chief executive officer is Datuk Faisal Abdullah.
The task force comprised Skrine partner Lim Chee Wee and PricewaterhouseCoopers Advisory Services' managing director Chin Kwai Fatt, and senior executive director Lim San Peen.
PKA chairman Lee Hwa Beng lodged two reports - one with the police and the other with the Malaysian Anti-Corruption Commission (MACC) - upon receiving the 370-page report with 2,500 appendices from the task force.
Lee in his report said the task force had found that Kuala Dimensi had:
> POSSIBLY made fraudulent claims on electrical infrastructure worth RM55.8 million, which had yet to be carried out on the site, and 33kv supply works and civil infrastructure works worth RM83 million, as TNB had rejected the proposal for Kuala Dimensi to undertake the work;
> NOT provided any document to support its claim of at least RM231 million as preliminaries under the development agreements, besides making claims for items it was not contractually entitled to, such as procurement of a performance bond and payment for insurance premiums totalling RM5 million;
> NOT justified its claim for variation works of RM62 million under Additional Development Works and New Additional Development Works agreements;
> APPEARED to have made an "over claim" for hotel works for which Kuala Dimensi had claimed RM69.6 million compared to the quantity surveyor's valuation of RM44.7 million.
> NOT produced any invoice or payment voucher for the RM61 million which the company claimed was professional fees and expenses incurred; and
> CLAIMED RM254.9 million as extra work done even though the purported revised works fell within the scope of the original works envisaged in the main development agreement.