MP & ADUN Demand Legal Opinion on PKNS JV with Melati Ehsan on PJ Sports City
MEDIA STATEMENT: MP & ADUN DEMAND LEGAL OPINION ON PKNS JV WITH MELATI EHSAN ON SPORTS CITY
On 28th January 2011, PKNS and Melati Ehsan Bhd entered into a joint venture agreement to develop Sports City in Kelana Jaya. This project is extremely controversial as the site for the project has been gazetted as recreational land by the local authorities, MBPJ.
Sometime after the Rancangan Tempatan Petaling Jaya (RTPJ) was gazetted by MBPJ on 13th January 2011, someone changed the site plan usage from recreational to commercial.
This serious act of fraud became a subject of a Selangor government Select Committee on Competency, Accountability and Transparency (SELCAT) hearing in 2012.
The Selangor government conducted a SELCAT hearing and found gross negligence but could not identify who did what and when.
For many residents of Kelana Jaya, the results of the SELCAT hearing meant that the Selangor government, via PKNS will not proceed with the Sports City development.
Recent issues and positions
Early this year the residents of Kelana Jaya were shocked to read that Melati Ehsan and PKNS have decided to revive the controversial project. An application for development order was submitted by them to MBPJ in February 2015.
I wrote to PKNS and Menteri Besar Azmin Ali for an explanation on the matter. PKNS replied that the JV agreement with Melati Ehsan will have to be honoured otherwise PKNS will be liable to legal actions by Melati Ehsan for loss of profit.
Last Friday, together with YB Nik Nazmi, ADUN for Seri Setia, we met with PKNS and viewed a copy of the JV agreement. The agreement is problematic to say the least. However there is one provision in the agreement for the Menteri Besar to terminate the JV for the sake of national interest. YB Nik Nazmi and I then requested PKNS to do a complete legal review of the JV agreement and to further advise us on the legal position. We demanded that the legal opinion be completed within 14 days.
After receiving the legal opinion, I intend to seek a meeting with the Menteri Besar to resolve this matter. In the meantime, YB Nik Nazmi and I are committed to stop this tainted and controversial development. We have also informed our MBPJ representatives and all MBPJ councillors to be on alert and not to support any development order on this matter.
YB Wong Chen
Member of Parliament for Kelana Jaya
20 May 2015