Sg Chua villagers brought their complaint against Sunway Infrastructure Bhd to Securities Commission today

Press Statement
Ronnie Liu Tian Khiew

(Kuala Lumpur, Friday): This morning, the residents of Sg Chua who lost their homes to Sunway Infrastructure Bhd, the concessionaire for the Kajang Outer Ring Road with 4 toll plazas, brought their complaint to the Securities Commission.

I have presented a Letter of Complaint on behalf of the 20 effected families to senior officials of the Securities Commission headed by Mastura Intan Abd Rashid (Investigation, Enforcement Division), Anisah Mustapha (Head of Complaints Department, Enforcement Division) and Nurini Kassim (Head of Corporate Affairs Department).

I have pointed out that not only the credibility of Sunsilk is in question, even the credibility of the Securities Commission as the controlling agency will be at stake if Sunsilk is allowed to be listed on 17 December 2003 (tentatively) before it has clear its name.

At the end of the one-hour meeting, the SC officials promised to investigate the residents' complaints over certain information given in the IPO Prospectus of Sunway Infrastructure Bhd (Sunsilk) dated 13 Nov 2003 immediately after the Hari Raya holiday. If there were enough merits and evidence, actions will be taken against Sunsilk.

The residents have expressed willingness to attend further meeting or hearing with the Securities Commission. They have also requested the SC to summon Tan Sri Cheah Fook Ling (Chairman of the Sunway Group) and Ang Kew
Chuan (General Manager of SILK) for explanation.

I am reproducing the Letter of Complaint to the SC in full as follow: -

Friday, 21 November 2003

The Chairman
Securities Commission
3 Persiaran bukit Kiara
Bukit Kiara 50490 Kuala Lumpur

Ronnie Liu Tian Khiew
Advisor to the Sg Chua Residents Representative Committee
DAP Selangor chairman
77 Jalan 20/9
Paramount Garden
46300 Petaling Jaya

Dear Sir,

RE:   Sunway Infrastructure Berhad (SIB) Prospectus for IPO

In the Prospectus dated 13 November 2003, Sunway Infrastructure Berhad (Company No. 405897-V) has made the following claim under the heading 1.7 Material Litigation, Capital Commitments, Contingent Liabilities and Borrowings:

"1.7 Material Litigation

Saved as disclosed in Section 20.4.6 and 20.4.7 of this Prospectus, as at 7 November 2003(being the latest practicable date prior to the issuance of this Prospectus), neither the Company nor its subsidiary companies are engaged in any material litigation, claims or arbitration, either as plaintiff or defendant, or any material claim against the Company or its subsidiary companies, or material arbitration proceeding which has a material effect on the business or financial position of the Company or its subsidiary companies and the Directors do not know of any proceeding pending or threatened or of any fact likely to give rise to any proceeding which might materially affect the business or financial position of the Company or the subsidiary companies."

We like to bring the attention of the Security Commission to the disclosed note section 20.4.7 in the Prospectus, where Tan Yoke Kwee and 19 others filed an action in the High Court of Malaya at Shah Alam. (Originating Summons No MT3-21-164-2003) in late August 2003.

Tan and 19 others as plaintiffs have sued

1. Sistem Lingkaran Leburaya Kajang Sdn Bhd,

2. Sunway Holdings Inc Bhd,

3. Sunway Construction Bhd and

4. Pengarah Tanah dan Galian Negeri Selangor Darul Ehsan as defendents 1,2,3 and 4 respectively.

{Sistem Lingkaran Leburaya Kajang Sdn Bhd (SILK) is a subsidiary company of Sunway Infrastructure Berhad (SUNSILK)}

The case is still pending in Shah Alam High Court and in fact, SILK and other defendants will be cited for contempt following the demolition of 15 houses owned by the plaintiffs without a court order on 11 November 2003 morning by SILK and the land office, with the assistance of the FRU.

Please be notified that on Monday, 10 November 2003, the plaintiffs have filed a notice of appeal to the Court of Appeal. Further on 13 November 2003, the plaintiffs have filed an application for stay, which was heard on 18 November 2003.

The lordship Datuk Haji Suriadi Haji Halim Omar has granted a stay for one of the effected houses until 1.1.2004 and four other partly effected houses until the appeal is over. The first defendant SILK was also required to deposit RM350, 000 as security with the Shah Alam High Court for the effected house. This amount will be paid to the house owner upon success of the case against the defendants.

The demolition taken by SILK and land office on 11 November 2003 may affect heavy damages and claims on the Sunway group of companies.

The plaintiffs are claiming RM350, 000 each as rightful compensation from the four defendants. I believe in any event, the outcome of these suits will inevitably has a material effect on the business or financial position of the Company and subsidiary companies.

We would also like to highlight the fact that SUNSILK has undertaken to indemnify the Government from all actions, suits, claims, demands, proceedings, losses, damages, compensation, costs (including solicitor and client costs), charges and expenses. (Refer to clause 21 of the Prospectus for details). If Tan and 19 others succeed in the suit against the fourth defendant, the claims and costs involved would have to be borne by SILK.

Please also note that in the said Prospectus, it is stated that there is a 100% owned subsidiary of SIB called Salient Million was incorporated to undertake housing development for homeowners effected by the construction of the highway. But this was only on paper and never carried out by the company.

It was also stated in the Prospectus that a total of RM 300,000,000 will be incurred as land cost falling under the Ring Road. We failed to understand why the effected Sg Chua residents could not get their rightful compensation for their properties acquired in the process.

We urge the Securities Commission to look into our complaints and take the necessary actions within your jurisdiction.

Thanking you in anticipation.

Yours truly,

Ronnie Liu Tian Khiew
on behalf of the Sg Chua residents representative committee
[email protected]


* Ronnie Liu Tian Khiew, DAP Selangor Chairman