KOTA BARU: Kelantan Parti Amanah Negara's (PAN) Youth wing has lodged a police report against the state government for signing an agreement with what it claimed to be a "nonexistent company".

About 30 of the party members were at the Kota Baru police station at 5pm to file the report.

Its president Hazmi Hassan said the party has decided to report the matter to the police in order to find out the truth behind the deal between the state government, Menteri Besar Datuk Ahmad Yakob and the company.

"I hope the authorities, including the police will investigate the agreement because we suspect some element of negligence involved.

"I am wondering how can the MB and his exco members agree to such a deal without first checking the status of the company," he said.

Saying that the state government has made a "big mistake", Hazmi said that there was a need to find out if the company was attempting to dupe the state government.

"It was reported that the company has been blacklisted by Bank Negara Malaysia (BNM). If the state government continues with it, things can get more serious." he said.