Land Valuation By KDSB Was Higher, Says Witness

KUALA LUMPUR -- A witness in the trial involving former Transport Minister Dr Ling Liong Sik told the High Court here on Monday that the land valuation made by a representative from Kuala Dimensi Sdn Bhd (KDSB) was higher than hers.Former assistant director of valuation, Valuation and Property Services Department (VPSD), Ministry of Finance, Teo Lee Lee, said that KDSB, through Azmi & Company, set the value at RM29 per sq ft for a 830 acre site in the mukim of Klang.

She said her valuation for land with basic infrastructure, like road, was RM17 per sq ft and RM13 per sq ft if it did not have such a facility."I used to go to this area, only 500 acres of the swamp area had been filled," said the retiree.Teo is the first prosecution witness to testify in the trial of Dr Ling who is charged with cheating the Malaysian government by deliberately concealing from the Cabinet the additional interest rate of 7.5 per cent a year on the purchase price of a piece of land based on RM25 per sq ft, which was RM1,088,456,000, when he knew that the VPSD had taken into account the coupon/interest rate when the rate was fixed.

He was also charged with two amended alternative charges, which were for cheating and deliberately concealing from the Cabinet on the additional interest rate, despite knowing that the VPSD had taken into account the coupon/interest rate when the rate was fixed.On the value of RM17 per sq ft that was set, Teo said she set the rate after comparing the land valuation with other properties nearby, like Central Spectrum (M) Sdn Bhd, which was responsible for industrial development at Pulau Indah.She said it was her second valuation carried out in the same area, only this time the land size was bigger, from 400 acres to 830 acres.

For the first valuation, which was done on Dec 5 1998, Teo said she set the rate at RM17 per sq ft and maintained the rate for the second time in April 2000.Teo said the valuation she recommended took into account the property market in 1998 which was slow due to the economic slowdown in the country and the South East Asia region which affected investment and demand for property, industry and business.

Meanwhile, former Shah Alam VPSD director Datuk Sahari Mahadi told the court that he was instructed by the Port Klang Authority to make valuation of the land rate for a 830 acre site in Pulau Indah.Sahari, who is the second prosecution witness, said according to the valuation rate for the Port Klang Free Zone (PKFZ) project, the price was RM18 per sq ft."The original rate was RM18 per sq ft. However, it was increased to RM21 per sq ft based on valuation of special values," he added.Sahari said the rate of RM21 per sq ft was also agreed by the buyer, which was KDSB.He also said that the rate of RM21 per sq ft was for payment in cash, while the rate of RM25 per sq ft was for payment in installments.

The hearing continues today.

Source :Bernama