The Port Klang Free Zone (PKFZ) land purchase was offered and signed even before the cabinet informed the Port Klang Authority (PKA) of its official decision to proceed with plans to nail the deal in 2002, the Kuala Lumpur High Court was told today.

Testifying at the corruption trial of former transport minister Dr Ling Liong Sik, the ministry's former deputy secretary-general for planning, Abdul Rahman Mohd Noor, agreed today PKA had sent an offer letter to the seller on the same day the cabinet decided to pursue the deal on Nov 6, after postponing its decision on Oct 2.

azlanHowever, even before the cabinet meeting’s “official extract” was sent to PKA, giving the port authority the green light to proceed, its then-general manager OC Phang had issued an offer letter to Kuala Dimensi Sdn Bhd (KDSB) on Nov 6 to purchase its 999.5 acre plot.

Six days later the sales and agreement was signed between PKA chairperson Ting Chew Peh and KDSB, and witnessed by Phang, on Nov 12, although the official extract only made it to the PKA on Nov 20.

When questioned by deputy public prosecutor (DPP) Tun Abdul Majid Tun Hamzah, Abdul Rahman also said the PKA board was not informed

“This RM1.088 billion agreement... as a member of the board, would an agreement like this usually need board approval?” asked Tun Abdul Majid.

“Yes, it would,” replied Abdul Rahman, adding that usually in such cases the person who is signatory to an agreement is empowered by the board.

azlanYesterday, the witness said the cabinet deferred on the plan to buy the plot following objections raised by the Finance Ministry which recommended an acquisition, as it incurs a lesser cost.

Ling faces an amended principal 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 acres of land in Pulau Indah for the trans shipment hub project.

He was said to have committed the offence at the Prime Minister’s Office in Putrajaya between Sept 25 and Nov 6, 2002.

The interest rate was based on a rate of RM25 per sq ft, which worked out to RM1,088,456,000.

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.