Selangor MB denies abuse of power after police report on RM700 million SMG project

Selangor Menteri Besar Amirudin Shari today denied allegations of conflict of interest involving himself and a state exco after Perikatan Nasional (PN) lodged a police report on the Selangor Maritime Gateway (SMG) project worth RM700 million.

Selangor PN information chief Mohd Shukor Mustaffa had questioned the position of Amirudin and state exco Izham Hashim as directors in Landasan Lumayan Sdn Bhd (LLSB).
 
"This company was awarded the SMG project for the cleaning and development of the Klang River along 56km from Mid Valley in Kuala Lumpur to Port Klang which is said to cost RM700 million.

"This police report is not to accuse anyone. We want an investigation to be carried out," Shukor said after making the report at the Serdang police headquarters. 

Amirudin, the Sungai Tua assemblyman, said at a press conference this afternoon that he and Izham represented the state government's interests in the project. 

He said the project was inspired by former menteri besar Khalid Ibrahim and continued by his successor Mohamed Azmin Ali with a loan of RM45 million to LLSB. 

"I don't think there is an issue of conflict of interest as LLSB is a subsidiary of the state government." 

He added that the project would be fully funded by Berjaya Land, while the state would only provide the land.

He said 500 acres of land had been earmarked for the development of the project. 

Shukor at his press conference said the report was made so that an investigation would be carried out into the possibility of the misuse of power and conflict of interest, claming that Amirudin had used his position as menteri besar in the award of the project. 

He said another report would be lodged with the Malaysian Anti-Corruption Commission, depending on the developments of today's police report.

The issue was previously brought up by Abdul Razak Ismail, the secretary-general of  Parti Hijau Malaysia.

LLSB managing director Syaiful Azmen Nordin in a statement acknowledged that Amirudin and Izham were there to represent the interests of the state government. 

He said LLSB was a wholly-owned subsidiary of Menteri Besar Incorporated, and that 98 companies had been invited for the request for proposal process. 

He said none of the companies were interested in or met the necessary criteria, given that the land required high rehabilitation and infrastructure costs. 

"After that, LLSB received a proposal from Berjaya Land to form a strategic cooperation for the holistic development of the Klang River," he added. 

The project was meant to manage pollution and flooding problems at affected areas including Bukit Lanchong and Taman Sri Muda.