5 Oct 2011

PKA legal adviser: OC Phang refused to consult AG

A Port Klang Authority (PKA) legal adviser told the High Court in Kuala Lumpur today in the corruption trial of former transport minister Dr Ling Liong Sik, that its former general manager OC Phang had refused to consult the attorney-general (AG) on the terms of the Port Klang Free Zone (PKFZ) land deal.

Ninth prosecution witness, Fazilah Surkisah Mohammad, 47, said she advised Phang to do so, before and after the sale and purchase agreement was signed to ensure there was no conflict in the document.“I raised it with Phang. She didn't agree due to several reasons. First, it was not the norm for PKA to send any sale and purchase agreement to the AG.

“Second, the matter took such a long time to be resolved that the Jabel Ali company, a party to the project, had threatened to withdraw, and third, because Phang was of the view that PKA's request will not be given priority by the AG's office as PKA was a statutory body,” she said during examination-in-chief by deputy public prosecutor Manoj Kurup.
Fazilah said, although PKA had always funded itself, she gave the advice based on the fact that PKA did not have the funds for PKFZ which would ultimately, be managed by the government.

Apart from that, she added, the sale and purchase terms between PKA and Kuala Dimensi Sdn Bhd (KDSB) were entirely according to Phang's orders and she was only asked to check if it was in alignment with the decision of the board of directors.

Fazilah said there was no amendment to the agreement drafted by Rashid Asari & Co which was appointed by Phang and the PKA board of directors, and she had merely made spelling corrections before handing it back to the lawyers for the respective signatures.
'I only acted as a secretary during meetings'

Earlier in the proceedings, Fazillah said she was never consulted on legal matters during the PKFZ project meetings and was not informed of the agendas in advance.

She said, although her designation was legal adviser, she only acted as a secretary during the meetings and took down minutes.

Meanwhile, former PKA chairman Dr Ting Chew Peh, 68, said the Authority made the decision to purchase the land in December 2001, despite the increase in the interest rate to 7.5 percent.
However, he said the increase was due to the longer loan term of 15 years, as compared to 10, earlier.

He said throughout the meetings, no one from the Finance Ministry objected to the 7.5 percent interest rate.Ling, 68, is charged with cheating the Malaysian government by misleading the Cabinet into approving the Pulau Indah land deal for the mega distribution hub project in Port Klang, based on the terms agreed upon by KDSB and the PKA.

The charge, under Section 418 of the Penal Code, carries a sentence of up to seven years imprisonment and fine.Ling also faces an alternative charge of deliberately concealing facts related to the project, from the Cabinet, under Section 417 of the Penal Code, which provides imprisonment of up to five years and a fine. He is alleged to have committed the offences between Sept 25, 2002, and Nov 6, 2002, at the fourth floor of the Prime Minister's Office at the Perdana Putra building in Putrajaya.

The trial resumes tomorrow before Judge Ahmadi Asnawi.

 
Source - Bernama

No comments: