12 Sept 2011

Transport ministry ignored MoF fears over PKFZ


KUALA LUMPUR, Sept 12 — The Transport Ministry had climbed into the bed of the now scandalised Port Klang Free Zone (PKFZ) despite grave misgivings by the Ministry of Finance (MoF) just three weeks before the deal was inked in November 2002, Tun Dr Ling Liong Sik’s trial heard today.The MoF had then also accused Kuala Dimensi Sdn Bhd (KDSB) — the owner of 1,000 acres of land on Pulau Indah and the main contract to develop the port project — of “fraudulent representation” and had demanded the Ministry of Transport (MoT) clear the air over these allegations.

A former transport ministry official, in charge of logistics in the maritime division, told the High Court the MoF had been confused by several points in the Pulau Indah land deal that was to be got for the PKFZ project, and had sought an explanation from it.“The confusion was actually MoF had alleged there were many encumbrances on the land,” he replied when questioned by Dr Ling’s lawyer, K.K. Wong.
In property, the word “encumbrance” carries a technical meaning and refers to anything that affects or limits the title of the property, such as mortgages, leases, easements, and restrictions.

Chandrasekaran, who was chief secretary of the maritime division and had attended several round of meetings between the MoT and the MoF, also agreed with Wong’s suggestion that there had been claims of “fraudulent representation by KDSB”.Wong had wanted to know why the MoT was asked to prepare several documents raised in a Cabinet meeting on October 29, 2002.Chandrasekaran had previously told the court there was a mistake in the valuation of the price per square foot (psf) over the land deal.
Wong attempted to show that the “misunderstanding” had not been conveyed to Dr Ling.But Chandrasekaran, who is the prosecution’s fifth witness, appeared confused by the defence lawyer’s roundabout questioning and was uncertain in his answers.

At one point, he told Wong that he had not read the sale-and-purchase agreement inked between KDSB and the Port Klang Authority, despite having received it.Wong seemed to find the answer incredulous, and asked if he had handed it to his superiors in the maritime division as well as the MoT deputy chief secretary Datuk Abdul Rahman Mohd Noor.“I can’t remember,” Chandrasekaran replied, after a long pause.
Wong’s cross-examination of Chandrasekaran will continue tomorrow morning.


Source :  http://www.themalaysianinsider.com/malaysia/article/transport-ministry-ignored-mof-fears-over-pkfz/

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