Shamsuddin chokes on testimony against Khir

Shamsuddin Hayroni’s much anticipated testimony in the corruption trial of former Selangor menteri besar Dr Mohd Khir Toyo came to a screeching halt this afternoon.

The visibly nervous Ditamas Sdn Bhd director choked on his testimony soon after he took the stand at 2.30pm. Agitated, he shifted constantly in his seat and swallowed repeatedly.

Shamsuddin (left) could not finish his sentences as he was asked for his account of what had transpired when he bought the property involved in the case. His testimony was interspersed with periods of long silence and nervous monosyllabic answers.

This prompted Shah Alam High Court judge Mohtarudin Baki to ask if he was all right and able to continue.

Shamsuddin answered he was all right but this was followed by a period of fidgety silence.

The judge then addressed Shamsuddin's lawyers who are holding a watching brief, asking if he was well. The lawyers asked for a five-minute break which the judge granted.

After a brief meeting between Shamsuddin and his lawyers as well as consultations between the judge and both the prosecution and defence, Mohtarudin postponed the proceedings until 9am tomorrow.

Used to deal directly with Khir

Shamsuddin had been lucid enough to answer preliminary questions on his business and dealings with the Selangor government and involvement with Mohd Khir.

He admitted that he knew Mohd Khir and dealt with him and officials from state and state-owned companies as he is involved in construction and property development, with several state projects under his belt.

His ordeal started when DPP Abdul Wahab Mohamed began to ask him about two plots of land - No 8 & 10, Jalan Suasa 7/1 L, Shah Alam - involved in the charge.

These were said to have been sold to Mohd Khir at RM3.5 million, though these were valued at RM6.5 million when Ditamas Sdn Bhd acquired them in 2004. Shamsuddin is a director in the company.

In return, Shamsuddin and Ditamas were allegedly favoured with contracts worth millions of ringgit when BN administered Selangor and while Mohd Khir was menteri besar.

Shamsuddin was initially jointly charged with Mohd Khir under Section 165 of the Penal Code, but was acquitted and discharged when the proceedings began on Monday.

He faced an additional charge of abetting Khir, under Section 109 of the Penal Code, which was also dropped.

Questions on valuation

The first prosecution witness was property developer Syarikat Permodalan Kebangsaan Bhd chief executive Saiful Azmir Shahabuddin.

He owned the properties prior to these being sold to Ditamas and subsequently to Mohd Khir, having acquired lot 8 or PT 62 for RM763,000 in 1995 and lot 10 or PT 65 for RM575,000 in 1996.

Saiful then further spent between RM2.5 million to RM3 million to construct the bungalow and fixtures.

In his testimony this morning, Saiful verified that the properties - which include a 15,000 square feet bungalow, two plots of land (53,000 square feet) as well as furnishings, a gazebo, landscaping works, a fountain, waterworks, a jogging track, a large swimming pool and manicured garden - were sold at RM6.5 million to Ditamas in 2004.

In his opinion as a person involved in property development, Saiful said the price was appropriate for the well-appointed property in the area, though he admitted that he did not engage a professional valuation firm to endorse this.

Though he said that his first offer was for RM7 million, he reduced this to RM6.5 million after negotiations.

Of the said amount, he was paid RM650,000 via cash banked-in directly into his account by Shamsuddin.

Bumiputera reserve land?

He also received partial payment via two cheques totaling RM1,840,000 from his lawyer, former Bar Council president K Ragunath, who handled the documentation on his behalf and received partial payment from Ditamas.

Of the remaining balance of RM4.01 million, he received another payment via cheque from Shamsuddin.

Under cross-examination by lead defence counsel M Athimulan, Saiful was pressed several times on the actual value of his former property, and the lawyer also tried repeatedly to get him to admit that the property was bumiputera reserve land which means that it must be worth lower than normal land.

To this, Saiful steadfastly said that he was unaware if it was bumiputera reserve and would have to check the title.

Athimulan then managed to secure Saiful’s agreement that a property may not necessarily be sold at the market price or valuation price but at a price agreed upon by the buyer and seller, which may be higher or lower than the valuation or market value.

"Willing buyer, willing seller," said Saiful, quoting the well-known real estate principle, in agreement with the defence counsel.

He also managed to get Saiful to say that he indeed was looking to make a profit from the sale.

The CEO was also asked to provide further documentation on the transaction and the actual valuation of the property, that he has not yet made available to the MACC at his convenience to assist the court.