11 Aug 2011

PKFZ: Ex-ministry official admits error over land price


An ex-senior transport ministry official in the corruption trial of former transport miniser Dr Ling Liong Sik admitted to having made a mistake in the cost for per square feet (psf) of the Port Klang Free Zone (PKFZ) land.A mere 'confusion' resulted in the special value of RM21psf to be jacked up to RM25, in a letter written to land owner Kuala Dimensi Sdn Bhd (KDSB) on Oct 2, 2000 by principal assistant secretary in the ministry's maritime division P Chandrasekaran.

“The deputy secretary-general (earlier witness Abdul Rahman Mohd Noor) told me that we have received JJPH (Valuation and Property Service Department) and asked me to send a letter to KDSB, asking for their agreement on the valuation of JPPH,” Chandrasekaran narrated in reply to questions by DPP Manoj Kurup.Chandrasekaran said that he did not know how to write the letter, so he wrote it as it was dictated to him by Abdul Rahman.
Chandrasekaran had then typed out the letter, using the table provided in JJPH's letter and stating that RM25 psf was special value, as it included the construction of basic infrastructure development and other terms and conditions.In the JPPH letter dated Sept 29, the valuer assumed that 830 acres of land would be paid for over a period of 10 years at six percent interest per annum after putting down a five percent deposit.When Manoj pointed out that the JPPH did not state in their letter that RM25 psf was at special value, Chandrasekaran concurred.

Manoj: But it is mentioned as special value in your letter?

Chandrasekaran: Yes.

Manoj: So how is it that in P16 (JPPH's letter) it is RM21 psf and P18 (Chandrasekaran's letter) it is RM25?

Chandrasekaran: It is my understanding that for cash payment, the special value is RM21... but for deferred payments the special value is RM25.

The fifth witness in the hearing today said that he came to that opinion based on the summary provided in the JPPH letter.

Asked why was the JPPH detail summary on the RM25 psf special value “missing” in Chandrasekaran's letter, he replied that it was and he wrote the letter as it was “dictated” to him.

Judge Ahmadi Asnawi then asked, “So your are blaming your boss?”

Chandrasekaran: No, no, no.

Ahmadi: But you said it was dictated?

Chandrasekaran: Yes.

He then accepted that he should not have stated that RM25 psf was at special value.

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.
 
 
Source : http://www.malaysiakini.com/news/172699

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