PKA Was In Deficit And Could Not Afford Land For PKFZ, High Court Told

KUALA LUMPUR -- The Port Klang Authority (PKA) had no financial standing to purchase the 830 acres of land in Mukim Klang for the Port Klang Free Zone (PKFZ) project, the High Court here was told on Thursday.Former Ministry of Transport deputy secretary-general (Planning) Abdul Rahman Mohd Noor, 61, said the Ministry had suggested acquiring the land and leasing it to PKA as the authority's finances were unstable."PKA could not afford the land as it lacked funds and if it had gone ahead, its financial situation would have deteriorated," Abdul Rahman told Deputy Public Prosecutor Tun Abd Majid Tun Hamzah during examination-in-chief.

 Abdul Rahman, the fourth prosecution witness in former transport minister Dr Ling Liong Sik's corruption trial, said despite a 50 per cent subsidy from the government, PKA was still in deficit and could not afford the land.

Apart from that it was also suggested that PKA take a government loan for the purchase, Abdul Rahman told the court.Abdul Rahman said the government loan suggestion was made during a meeting chaired by Finance Ministry Investment, MKD (Incorporated) and Privatisation Division secretary Abdul Rahim Mokti on Nov 2 2000.Dr Ling was informed of the meeting via a letter dated Nov 6 2000, he added.

Earlier in the proceedings Abdul Rahman had said that the government planned to make Port Klang a transshipment hub for the country which was the reason for the intention to purchase 830 acres instead of 400 acres offered by Kuala Dimensi Sdn Bhd (KDSB)."PKA rejected the 400 acre initial offer from KDSB as it was too small for the purpose," he explained.

Dr Ling, 68, faces an amended principal charge of cheating the Malaysian government by concealing from the Cabinet the additional interest of 7.5 percent a year on the purchase price of a land in Pulau Indah as against the six percent rate set by the Valuation and Property Services Department (VPSD).He also faces two amended alternative charges of cheating the government by not revealing to the Cabinet the facts related to the additional interest rate, and cheating the Cabinet into believing that the facts related to the purchase of the land were certified and agreed to by VPSD when he knew there was no such consent.The offences were allegedly committed at the Prime Minister's office in Putrajaya between Sept 25 and Nov 6, 2002.

The hearing before judge Ahmadi Asnawi continues today.

Source : Bernama