KUALA LUMPUR (Jan 19): Former Port Klang Authority general manager Datin Paduka OC Phang who was ordered to pay RM2.6 billion in damages by the Shah Alam High Court to the authority has been declared a bankrupt.

In 2018, the High Court had found her liable for 11 of the 15 breaches listed by PKA in a suit filed against her, according to Malaysiakini.

Justice M Gunalan had agreed with PKA's claim that Phang owed her duties to PKA as its general manager and given that it is a statutory body, she could not bypass the board of directors and rely solely on sanctions of the Transport Ministry, Finance Ministry and the Prime minister to enter into agreements which were binding on PKA.

"It is erroneous for Phang to contend that the Treasury guidelines were not binding or applicable to her or that she had not known of the same. Phang cannot in principle rely solely on the protection of the Transport Ministry for her actions," he said.

The court ruled that Phang had breached her duties as PKA general manager by entering into agreements without first consulting the PKA board of directors and in disregard of PKA's dire financial state, but which instead appeared to benefit the interests of a third party.

More to come