Matrade Building: Another RM160 million burnt to ashes

(Click to enlarge picture)

Works Minister, Dato Seri Samy Vellu, was reported to have said in the Star on February, 26 2006, when he visited the site of the Matrade Building that,

"PISB was told to pay liquidated damages (LAD) or late delivery charges of RM41,750 per day for 2,276 days from the termination date... that legal action was being taken against PISB to pay the RM95mil owed in LAD and RM64.8mil as cost for the additional repair works."

PISB (Peransang International Sdn Bhd) was a subsidiary solely owned by Kumpulan Perangsang Selangor Bhd (KPS), the Selangor state government investment arm that recorded a pre-tax loss of RM97,904,000.00 for the year 2005.

However, a search conducted at the Kuala Lumpur High Court Division revealed that PISB, which had its name changed to Tajuk Construction Sdn Bhd on 29.11.2004 after it was disposed of to Tajuk Modal Sdn Bhd for RM2.00 on 19.7.2004, had been wound up by Angkasa Nusantara Sdn Bhd on 18.1.2006, 39 days before Samy Vellu told the people that legal action would be taken to recover damages from PISB!

This is, so far, the biggest joke of the year where the minister was talking about suing a company legally no longer in existence. Another RM159.8 million had been burnt to ashes.

Samy Vellu must explain to the people who had been fooled in this Matrade episode, Samy Vellu or the people? It is either Samy Vellu who had been fooled by his officers or the people who had been fooled by Samy Vellu.