Politics

Whistleblower website accuses Selangor’s MBI of impropriety

The 2012 Jana Niaga staff protest held in Unisel's main campus at Bestari Jaya, Selangor.

The 2012 Jana Niaga staff protest held in Unisel's main campus at Bestari Jaya, Selangor.

Zaidi Azmi
Written by Zaidi Azmi

KUALA LUMPUR – July 21, 2017: A whistleblowing website said to be based in Selangor has accused state asset management company, the Menteri Besar Incorporated (MBI), of committing gross misconduct.

According to Selangor-Leaks, the issue involves MBI, Universiti Selangor (Unisel) and construction company Jana Niaga Sdn. Bhd.

The anonymous website alleges that MBI had made a questionable payment to Jana Niaga despite the company’s failure to meet its contractual obligations with Unisel. 

Selangor-Leaks mentions that the issue started in 2003 when Unisel entered a privatisation agreement with Jana Niaga to build, operate and manage the university’s student and staff accommodation.

The deal however turned sour in 2011 when Unisel decided that the work by Niaga was not satisfactory, leading the university to terminate the agreement.

Jana Niaga took the matter to court but in December 2012, the Shah Alam High Court ruled in favour of Unisel. The ruling was upheld by a Court of Appeal in July 2013.

To address the flaws of the job, Unisel apparently borrowed RM53.4 million from MBI. Jaya Niaga was supposed to then pay the same amount to Unisel.

But in February 2015, a year after former Selangor Mentri Besar Tan Sri Khalid Ibrahim was replaced by Datuk Seri Mohamad Azmin Ali, MBI paid an advance of RM10 million to Jana Niaga without the knowledge of Unisel.

The payment came with a few strings attached, one of which was that Unisel must re-award Jana Niaga the terminated contract.

Selangor-Leaks further contends that in June last year, MBI also issued a RM6 million payment voucher to Jana Niaga as a part of a RM23 million settlement.

The website also quotes a legal opinion issued by a law firm that the total amount owed by Jana Niaga to Unisel is RM60.4 million, including the RM10 million advance paid in February 2015.

Jana Niaga disputed the numbers and claimed that Unisel in fact owed it RM77.1 million in outstanding debts, premature termination of contract and interest due to late payments.

The Mole’s repeated attempts today for a clarification from Azmin’s office were not entertained.

Below are several scanned images of what Selangor-Leaks claimed to be MBI’s settlement proposal concerning the Unisel-Jana Niaga issue.

 

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About the author

Zaidi Azmi

Zaidi Azmi

Despite becoming The MOLE's journalist in 2014, he still has a hard time traversing the city. If he is not lost, this northern kampung boy can be found struggling to make some sense out of the Malaysian political sphere.