Sg Chua villagers brought their complaint against Sunway
Infrastructure Bhd to Securities Commission today
Press Statement
by 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
Selangor
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]
(21/11/2003)
* Ronnie Liu Tian Khiew, DAP Selangor Chairman
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