Why did the court find Phang liable for the PKFZ losses?

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OC Phang Found Liable for Port Klang Free Zone Construction Losses

The High Court determined that OC Phang, former general manager of the Port Klang Authority (PKA), is liable for financial losses incurred by PKA due to the Port Klang Free Zone (PKFZ) project. Justice M. Gunalan ruled that Phang owed a duty of care to PKA, which was not excused by her assertion of acting on ministerial orders. The court also noted Phang's failure to present witnesses to substantiate her defence.
Duty of Care Not Absolved by Ministerial Orders Claim

The court concluded that OC Phang's defence, which claimed she acted solely on instructions from the then ministers of finance and transport, did not absolve her of her responsibility. Justice M. Gunalan found that Phang maintained a duty of care towards the Port Klang Authority throughout the PKFZ project. This duty was not discharged by her defence that her actions were dictated by unilateral orders from government ministers.
Failure to Present Supporting Witnesses

A significant factor in the court's decision was OC Phang's inability to provide supporting evidence for her defence. Lawyers representing PKA highlighted that Phang did not call any witnesses to corroborate her claim that she was acting under orders. The absence of testimony from relevant parties, such as the transport ministers at the time, weakened her argument that she was merely following directives.
PKA's Lawsuit for Breach of Trust and Duty

The legal action against OC Phang was initiated by the Port Klang Authority. PKA sued Phang, its former general manager, alleging a breach of trust and duty in her management of the PKFZ project. The lawsuit sought to hold her accountable for the substantial financial losses that the authority sustained as a consequence of the project's development.

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Why did the court find Phang liable for the PKFZ losses?

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