Former Transport Minister Tun Dr Ling Liong Sik had agreed to abide by the Finance Ministry's decision for acquisition of the 405ha piece of land in Pulau Indah for the Port Klang Free Zone (PKFZ) project, a former senior Transport Ministry official told the High Court.
Abdul Rahman Noor, 63, who was then planning division's deputy secretary-general, said Treasury (under the Finance Ministry) had informed the ministry that it should acquire the land at RM10.16psf and fund the land acquisition itself.
The PKFZ development cost would then be funded via government bonds and the project should be done via open tender, said Abdul Rahman when questioned by deputy public prosecutor Datuk Tun Abdul Majid Hamzah yesterday.
This was expressed in a letter dated June 12, 2001, from then Treasury secretary-general Tan Sri Samsudin Hitam and addressed to then ministry secretary-general Datuk Zaharah Shaari.
This decision by Treasury was in direct contradiction to an earlier Cabinet decision in February that year to purchase the land from its owner Kuala Dimensi Sdn Bhd (KDSB).
“In totality, the decision (by the Cabinet to purchase the land) had been reversed,” he testified.
He said when Dr Ling was informed, he agreed to follow the Treasury's decision to acquire the land.
However, Abdul Rahman revealed that despite the green-light given by the former minister for the acquisition, discussions to buy the land continued between the Port Klang Authority (PKA) and KDSB.
The court was told that PKA general manager Datin O.C. Phang had met former KDSB chief executive officer Datuk Seri Tiong King Sing on Dec 26, 2001, on discussions to purchase the land on revised terms.
PKA chairman Tan Sri Dr Ting Chew Peh had also chaired a meeting on Jan 3, 2002, with one of the agenda being to discuss the land purchase on revised terms, including the sale at RM25psf (at special valuation), a 10% deposit, and a yearly 7.5% interest rate for 15 years.
This included a RM350mil development package by KDSB, notwithstanding the Treasury's decision that the PKFZ project should have been done via open tender.
When asked why discussions on the purchase were still on despite the Treasury's decision to acquire the land, Abdul Rahman, who was also a member of PKA's board of directors, said it was because the acquisition plan was facing many problems, including objections from the Selangor government.
Former Valuation and Property Services Department deputy director-general Datuk Mani Usilappan had testified that it had made a RM25psf valuation based on the assumption that (the initial) 335.8ha of land would be paid for over 10 years at a 6% interest per annum, with a 5% deposit.
Dr Ling has claimed trial to an amended principal charge of deceiving the Government by not exposing to the Cabinet an additional interest rate of 7.5% annually for the purchase of land for the PKFZ project.
He faces two optional charges of cheating the Government by not exposing to the Cabinet facts pertaining to the interest rate, and deceiving it into believing that facts on the land purchase at RM25psf and 7.5% interest rate were certified and agreed to, by the Finance Ministry's Valuation and Property Services Department when he knew there was no such consent.
He is said to have committed the offences at the Prime Minister's office in Putrajaya between Sept 25 and Nov 6, 2002.
Source : The Star
Related News : ‘PKA unable to buy land’
No comments:
Post a Comment