Former transport minister Dr Ling Liong Sik was not involved in
buying the land for the multi-billion ringgit Port Klang Free Zone (PKFZ)
fiasco, said a witness.The Port Klang
Authority (PKA) had made its decision to purchase the 999.5 acre plot needed to
develop the mega transhipment hub in Pulau Indah but Ling “neither objected nor
agreed” to the deal.
Ling's corruption trial at the Kuala Lumpur High Court was told that PKA decided on buying the plot for the Port Klang Free Zone (PKFZ) project on Dec 12, 2001 but only informed Ling through a letter on Jan 8, 2002.Retired Transport Ministry deputy secretary-general Abdul Rahman Mohd Noor, 61, agreed that Ling had neither raised an objection nor consented to the purchase of the land.
Under cross-examination by Ling's lawyer Wong Kian Kheong, the witness also concurred that the port authority insisted on purchasing the land instead of an acquisition.The witness said last week that PKA had insisted on obtaining the 999.5 acre plot by buying it over from land owner Kuala Dimensi Sdn Bhd (KDSB) at RM1.088 billion, but the Finance Ministry's Treasury had instead proposed an acquisition at a much lower cost.
He previously said Ling wanted the land purchase hastened as PKA, at the time, was rushing to construct the mega hub in a strategic alliance with Dubai's Jebel Ali Free Zone International (JAFZI). Although Port Klang was on JABZA's most strategic location, it was also considering to take its 3,000 companies to two other major ports - Laem Chabang in Thailand or Indonesia's Batam Island. “The PKA board was insistent on its decision to buy the plot and not to acquire, not under the direction of the accused (Ling)?” asked Wong, and Abdul Rahman agreed.
He agreed when Wong suggested that Ling had never “overruled or reversed” any recommendations from his senior officer on the development of PKFZ.Ling had also depended entirely on advice by his in matter concerning the mega hub transhipment, established Wong.
Rais Yatim entrusted to oversee feasibility
However, despite PKA's firm decision to buy the plot, the cabinet which was still undecided, entrusted then-minister in the Prime Minister's Department in charge of legal affairs Rais Yatim, to oversee the feasibility of buying the land or to settle through an acquisition, on June 27, 2002.
Nevertheless, the Transport Ministry on June 29 wrote to then-prime minister Mahathir Mohamad urging for a decision in obtaining the land and the entire project matter, directed to the latter's special economic adviser, Ali Abul Hassan.
Both Rais and Ali Abul had agreed that the project was “economically viable”, although the Treasury, in their rejection, said that the cost of the land and the construction of basic infrastructure would result in the estimate cost to balloon to a staggering RM2.44 billion.
It was also mentioned that Rais was left in charge of investigating allegations of misrepresentation against KDSB to the cabinet on Oct 30.“Did you know if Rais' proposal helped the legal aspects of this case?” asked Wong, and Abdul Rahman replied that “it did”.
Yesterday, the prosecution said that the cabinet paused on the land deal on Oct 2 following an objection from the Finance Ministry, but the decision was later reversed on Nov 6. PKA had then immediately sent an offer to KDSB on the same day without holding on for the official extract of the cabinet decision, which was only received on Nov 20, by which time the parties had already inked the sales and purchase agreement.
Referring to PKA's board meeting minutes on Nov 15, where the signed deal was discussed, Wong asked: “In the time you served as a member of the board, have you ever issued any memo or notes to show that P25 (sales and purchase agreement) did not follow the JPPH (Valuation and Property Services Department) valuation?
Abdul Rahman: No.
Wong: In the time you served as a member of the board and the Transport Ministry's deputy secretary-general, did you ever receive any complaints from the cabinet that P25 did not follow the JPPH valuation?
Abdul Rahman: No.
Wong: Do you know if PKA terminated the P25?
Abdul Rahman: No, as far as I know, until I retired.
Ling faces a charge of deceiving the government by concealing an additional interest rate of 7.5 percent per annum to the cabinet for the purchase of 999.5 acre plot for the mega transhipment hub.
He was said to have committed the offence at the Prime Minister's Office in Putrajaya between Sept 25 and Nov 6, 2002.
Ling is accused of having committed deception with the knowledge it could cause wrongful losses to the government and despite being bound by a fiduciary duty to protect the government.
Ling also faces two optional charges:
Ling's corruption trial at the Kuala Lumpur High Court was told that PKA decided on buying the plot for the Port Klang Free Zone (PKFZ) project on Dec 12, 2001 but only informed Ling through a letter on Jan 8, 2002.Retired Transport Ministry deputy secretary-general Abdul Rahman Mohd Noor, 61, agreed that Ling had neither raised an objection nor consented to the purchase of the land.
Under cross-examination by Ling's lawyer Wong Kian Kheong, the witness also concurred that the port authority insisted on purchasing the land instead of an acquisition.The witness said last week that PKA had insisted on obtaining the 999.5 acre plot by buying it over from land owner Kuala Dimensi Sdn Bhd (KDSB) at RM1.088 billion, but the Finance Ministry's Treasury had instead proposed an acquisition at a much lower cost.
He previously said Ling wanted the land purchase hastened as PKA, at the time, was rushing to construct the mega hub in a strategic alliance with Dubai's Jebel Ali Free Zone International (JAFZI). Although Port Klang was on JABZA's most strategic location, it was also considering to take its 3,000 companies to two other major ports - Laem Chabang in Thailand or Indonesia's Batam Island. “The PKA board was insistent on its decision to buy the plot and not to acquire, not under the direction of the accused (Ling)?” asked Wong, and Abdul Rahman agreed.
He agreed when Wong suggested that Ling had never “overruled or reversed” any recommendations from his senior officer on the development of PKFZ.Ling had also depended entirely on advice by his in matter concerning the mega hub transhipment, established Wong.
Rais Yatim entrusted to oversee feasibility
However, despite PKA's firm decision to buy the plot, the cabinet which was still undecided, entrusted then-minister in the Prime Minister's Department in charge of legal affairs Rais Yatim, to oversee the feasibility of buying the land or to settle through an acquisition, on June 27, 2002.
Nevertheless, the Transport Ministry on June 29 wrote to then-prime minister Mahathir Mohamad urging for a decision in obtaining the land and the entire project matter, directed to the latter's special economic adviser, Ali Abul Hassan.
Both Rais and Ali Abul had agreed that the project was “economically viable”, although the Treasury, in their rejection, said that the cost of the land and the construction of basic infrastructure would result in the estimate cost to balloon to a staggering RM2.44 billion.
It was also mentioned that Rais was left in charge of investigating allegations of misrepresentation against KDSB to the cabinet on Oct 30.“Did you know if Rais' proposal helped the legal aspects of this case?” asked Wong, and Abdul Rahman replied that “it did”.
Yesterday, the prosecution said that the cabinet paused on the land deal on Oct 2 following an objection from the Finance Ministry, but the decision was later reversed on Nov 6. PKA had then immediately sent an offer to KDSB on the same day without holding on for the official extract of the cabinet decision, which was only received on Nov 20, by which time the parties had already inked the sales and purchase agreement.
Referring to PKA's board meeting minutes on Nov 15, where the signed deal was discussed, Wong asked: “In the time you served as a member of the board, have you ever issued any memo or notes to show that P25 (sales and purchase agreement) did not follow the JPPH (Valuation and Property Services Department) valuation?
Abdul Rahman: No.
Wong: In the time you served as a member of the board and the Transport Ministry's deputy secretary-general, did you ever receive any complaints from the cabinet that P25 did not follow the JPPH valuation?
Abdul Rahman: No.
Wong: Do you know if PKA terminated the P25?
Abdul Rahman: No, as far as I know, until I retired.
Ling faces a charge of deceiving the government by concealing an additional interest rate of 7.5 percent per annum to the cabinet for the purchase of 999.5 acre plot for the mega transhipment hub.
He was said to have committed the offence at the Prime Minister's Office in Putrajaya between Sept 25 and Nov 6, 2002.
Ling is accused of having committed deception with the knowledge it could cause wrongful losses to the government and despite being bound by a fiduciary duty to protect the government.
Ling also faces two optional charges:
- Cheating the government by not revealing to the cabinet the facts relating to the interest rate;
- Cheating the cabinet into believing that the facts relating to the purchase of the land at the rate of RM25 psf and interest rate at 7.5 percent were approved and agreed to by the JPPH, an agency under the Finance Ministry, when he knew there was no such consent.
Earlier on, the prosecution established that PKA had bypassed
procedures in inking the PKFZ land deal on Nov 12, 2009 even before the cabinet
had given its official approval.
The hearing before Judge Ahmadi Asnawi resumes tomorrow with Abdul Rahman on the witness stand.
The hearing before Judge Ahmadi Asnawi resumes tomorrow with Abdul Rahman on the witness stand.
Source : http://www.malaysiakini.com/news/172562
No comments:
Post a Comment