Malaysia

Firm sues Parliament’s chief administrator over aborted club project

Stereofonik Teknologi Sdn Bhd alleges interference in Kelab Parlimen M’sia scheme

Updated 3 years ago · Published on 23 Apr 2023 10:00AM

Firm sues Parliament’s chief administrator over aborted club project
Stereofonik Teknologi Sdn Bhd is seeking a declaration that it has the right to undertake the Kelab Parlimen Malaysia project and an order to approve a 30-year long-term grant. – SYEDA IMRAN/File pic, April 23, 2023

by Arjun Mohanakrishnan

JOHOR BARU – A company has filed a suit seeking the reinstatement of an agreement to develop and run the proposed Kelab Parlimen Malaysia, a recreational club for MPs, senators, Parliament staff, and members of the corporate sector.

The suit was filed in the Kuala Lumpur High Court by Stereofonik Teknologi Sdn Bhd on March 17, naming the Parliament chief administrator and the federal director-general of the Lands and Mines Department as defendants.

In its statement of claim sighted by The Vibes, Stereofonik said it was appointed to undertake the club project after making several presentations to then Dewan Rakyat speaker Tan Sri Mohamad Ariff Md Yusof, as well as his successor Tan Sri Azhar Azizan Harun, and then law minister Datuk Seri Takiyuddin Hassan, among others.

The proposal to set up the club was first announced on Parliament’s official website in October 2019, the statement of claim said.

Stereofonik, meanwhile, is described as a company with expertise in managing recreational clubs – as well as social, golf, and sports clubs – including membership administration and operation of club facilities, according to credit reporting agency CTOS.

Stereofonik’s statement of claim said that on September 24, 2020, Datuk Kamis Samin, who was then Parliament’s chief administrator, signed a letter of undertaking with the company officially appointing it to spearhead the project.

Stereofonik Teknologi Sdn Bhd claims that on September 24, 2020, Datuk Kamis Samin, who was then Parliament’s chief administrator, signed a letter of undertaking with the company officially appointing it to spearhead the Kelab Parlimen Malaysia project. – Screen grab pic, April 23, 2023
Stereofonik Teknologi Sdn Bhd claims that on September 24, 2020, Datuk Kamis Samin, who was then Parliament’s chief administrator, signed a letter of undertaking with the company officially appointing it to spearhead the Kelab Parlimen Malaysia project. – Screen grab pic, April 23, 2023

Later that month, Parliament’s administration (Pentadbiran Parlimen Malaysia) made Stereofonik an offer to rent two Public Works Department (PWD) quarters for the purposes of the club project.

“On November 11, 2020, in the presence of civil servants from Parliament led by Kamis, a visit was made to the project site,” Stereofonik’s statement of claim said.

“Architects who were present and Kamis agreed to support giving the plaintiff (Stereofonik) a 30-year grant along with a rental reduction.

“The new rental rate agreed upon was RM1,000 for each building.”

A few weeks later, Parliament’s Civil Service Housing Management Committee approved the addition of three more PWD quarters for the project to ensure the club would be a five-star facility in line with Parliament’s image.

However, on November 24, 2020, Kamis was admitted to the National Heart Institute, and Stereofonik was asked to deal with his deputy Datuk Zamani Sulaiman.

The following month, Parliament’s administration issued a letter of support for the proposal to award Sterefonik with a 30-year long-term grant and a rental reduction to the federal lands and mines director-general.

Stereofonik claimed that the federal land office should have approved the grant and rental reduction to allow the project to proceed, but it failed to do so.

“Due to the failure to do so, the plaintiff has borne losses until today as we were not able to proceed with the project, and were forced to incur operating costs from December 2020 to February 2023,” the statement of claim said.

The company also said that on January 4, 2021, Datuk Nor Yahati Awang took over as Parliament’s chief administrator and Stereofonik invited her to visit the project site, which she did a week later.

However, despite a briefing later the same month by the company to speaker Azhar where Yahati was also present, Stereofonik said that she did not provide the cooperation necessary for the management of the project.

Stereofonik Teknologi Sdn Bhd alleges that Parliament’s chief administrator Datuk Nor Yahati Awang did not provide the cooperation necessary for the management of the Kelab Parlimen Malaysia project. – parlimen.gov.my pic, April 23, 2023
Stereofonik Teknologi Sdn Bhd alleges that Parliament’s chief administrator Datuk Nor Yahati Awang did not provide the cooperation necessary for the management of the Kelab Parlimen Malaysia project. – parlimen.gov.my pic, April 23, 2023

“Various quarters from Parliament’s administration began to interfere with the management of Kelab Parlimen Malaysia, which stunted the progress of the project,” the statement of claim said.

Then, without regard to the previous letters of support by Kamis, as claimed by the company, Yahati issued a termination notice for the agreement to rent the PWD quarters.

As a result, Stereofonik is seeking a declaration that the company has the right to undertake the Kelab Parlimen Malaysia project and an order to approve the 30-year long-term grant. 

In addition to an unspecified amount of damages, Stereofonik is also seeking an injunction against Parliament’s chief administrator’s office preventing it from terminating the rental agreement. 

Through checks with the Companies Commission, two individuals are listed as Sterefonik’s directors – Anuggerahan and Asmaaullahilhuna Aziz. The company also has only two shareholders, namely Anuggerahan, who holds the majority of shares, and one Datuk Mohd Rawi Abd Hamid. – The Vibes, April 23, 2023

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