PM’s aide questions arbitration by Unisel and ex-contractor

Rizal-Mansor,-MBI.PETALING JAYA: The prime minister’s special officer, Rizal Mansor, has called on the Selangor Menteri Besar Incorporated (MBI) to state when the arbitration to settle a payment dispute with a former contractor of Universiti Selangor (Unisel) took place.

He also wanted MBI to name the arbitrator involved.

According to Rizal, who quoted from a report in the Selangor-Leaks portal, Unisel did not agree to the terms proposed by MBI and the advance payment of RM10 million to the contractor, Jana Niaga Sdn Bhd.

“Although the payment came from MBI, it is viewed as a debt owed by Unisel to MBI. The payment was also made before the process was finalised.

“Why did MBI pay Jana Niaga before the dispute had been settled?” he said in a statement today.

Yesterday, MBI warned it would take legal action against anyone accusing it of corruption related to the payment to Jana Niaga, according to a report by Malaysiakini.

MBI said the allegation that it made the payment even though Jana Niaga breached agreement terms and failed in its claims at the High Court and Court of Appeal was untrue.

The report also said MBI denied paying RM60 million to Jana Niaga.

“In December 2012, the Shah Alam High Court ruled that Jana Niaga and Unisel should settle their dispute through arbitration as provided under their contract,” said MBI.

Rizal said MBI should clarify the issues related to the dispute since they affected the interests of the Selangor people and the university’s students.

He said Selangor-Leaks reported that the legal firm of Raj, Ong and Yudistra stated that MBI tried to settle the issues as Unisel’s representative.

“However, Unisel disagreed with the terms proposed by MBI. According to the same report, Unisel also did not agree with MBI making the advance payment of RM10 million to Jana Niaga.”