Azmin and Puncak Wangi.. hmm!

When the story written by Nantha Kumar on FMT which alleged that the Selangor government has awarded a contract to a previously unknown RM2 company to build nine blocks of high-rise buildings in Section 52,Petaling Jaya. The story creates ripples on the electronic media that led to emails being circulated all over. In my busy year end closing, I had to find time to research this matter. My attempt to reach the reporter failed miserably. After reading a letter published by a reader in MT I decide to pen what I have gathered thus far. I hope Nantha Kumar read this as he certainly has some explanation to do.

From my research, I concluded that Nantha Kumar has written rubbish and unsubstantiated story. It carries many facts which are absolutely not true. I pity Azmin in this case. He may not be one of my many favorite ADUN but he certainly gets my sympathy and support in this matter. From my research there are many flaws in his article. My conclusion is based on the following facts.

The story goes back in 2004 where KT was the MB. On 29/9/2005, the SSG under KT signed a privatization agreement with Puncak Wangi Sdn Bhd (PWSB) to relocate the Selangor DVS land (Lot 8 ) in Section 52 PJ somewhere in Subang area. PWSB was a company set up in Sept 1995 which appears to have shareholder changes in 2005 where Gapurna Sdn Bhd owns 92.5% share and two other individuals by the name of Mohd Azrin and Krushiah Ali holds the balance of 7.5%. It is not a RM2 company but a company with paid up capital of RM200K. The corporate structure of all entities can be shown as below.

Unverified report suggest following. The land where PKNS building sits today is identified as Lot 12 which has a total land area of 9.85 acres. Under KT sometime in 2006, PKNS sold part of Lot 12 measuring 8 acres to Gapurna Sdn Bhd leaving behind a small area 1.85 acres for PKNS to build its HQ. However there is no document available in public domain to suggest the sale. The balance of 1.85 acre was said was said be too small to yield the desired built up space.

Sometime in 2009 under the stewardship of TSK, PKNS went into a negotiation with Gapurna on amalgamating Lot 8 the 10 acre of Lot 12 belongs to Gapurna and the balance of 1.85 acre to do one common development. These negotiations results in the birth of PJ Sentral. Apparently EPF came into the project as an investor and the returns are to be split at the ratio of 60% (Gapurna), 30% (PKNS) and 10% (EPF). The information with regards to EPF participation has not been verified and I could not find any info about it in the public domain.

The way I see it, PKNS from a loss position of owning a balance of 16% of land area ends up getting 30% share of the entire project. This is an improvement from 14% based on land area ownership. PKNS from owning a large tract of land (83% of total land area) ends up owning 1.85 acre (16%) under the stewardship of KT. Under the stewardship of TSKI, the ownership of the whole project went up to 30%.

On the issue of SSG giving business to PWSB, this does not arise. It is a company belonging to Gapurna and 2 others since 2005 till today. There is no shred of evidence presented to show that these two individuals have some business relationship with AA. It is most likely that the two individuals are proxy to some UMNO politician as there is a possibility that 7.5% share is a reward of some kind for the successful privatization project that involves Lot 8 (JPH land).The shareholding change at about the same time as the privatization was agreed upon.

The SSG has no direct say in this project. PKNS do. FMT claims that SSG gave PWSB a multimillion dollar project because PWSB is related to Azmin. This is unlikely as the main contractor of the project is Bisraya Construction SB (BCSB) and the parent company; Gapurna also owns 92.5% in PWSB. This status has not changed since 2005. Unless there is something that FMT knows that we don’t then I might be wrong. From what I gather it is very unlikely. I have written to MACC to investigate as it is one way to clear the name AA and SSG. I also agree with Pieter D’Cruz that the silence on the part of SSG is deafening. They should release some statement to clarify the circumstances as soon as possible.

Whatever it is, at this point AA has my support till someone come forward and show that the allegation made by FMT is true. I hope Azmin will soldier on despite these allegations. If FMT is reading this, I hope their reporter will contact me to provide some clarification.

courtesy of Rights2Write