KUALA LUMPUR – March 6, 2016: The Selangor Islamic Council (Mais) has countered a blogger’s allegations by clarifying that it is not aware of a decree from the sultan regarding the cancellation of a contract.
While the council states that it doesn’t know where anonymous blogger A Voice got his information from, it certainly hasn’t heard of such a decree.
The blogger had accused Mais of abusing Sultan Sharafuddin Idris Shah’s name to justify the termination of a contract for Redha Resources Sdn. Bhd. to manage Mais-owned hostels.
“I cannot pinpoint which part of the blog is untrue but all I can say is that the claims are not entirely true,” said a Mais corporate communications officer who didn’t want to be identified.
According to A Voice, Mais had in 2006 awarded Redha a 33-year privatisation contract to build, operate and transfer (BOT) three blocks of hostels that are to be rented out to students of the Selangor Islamic College (Kuis).
Redha had to raise the financing, which it did through a consortium of banks.
The hostels were built and Kuis passed on the rental to Redha. In turn, Mais gave a payment guarantee to the banks, the blogger wrote.
But Mais stopped paying Redha in December 2012, alleged the blogger, which resulted in the latter in not being able to pay the banks.
Mais allegedly did so because Redha had failed to obtain a certificate of fitness (CF) for the hostels after they were completed in 2008.
Interestingly, the blogger pointed out that despite not having the CF, the hostels were rented out to students from 2008 to 2012.
“Mais dropped the sultan’s name to claim it was instructed to terminate the contract but it still rented the hostels and collected the rental,” the blogger wrote.
Subsequently the consortium of banks filed an application in court against Mais and Redha, followed by Mais filing a counter suit against the consortium and Redha.