The Port Klang Authority (PKA) was under financial strain and could not afford to buy the 335.8ha piece of land in Pulau Indah for the Port Klang Free Zone project, a former senior Transport Ministry official told the High Court.
Abdul Rahman Noor, 63, who was then the Transport Ministry Planning Division’s deputy secretary-general, testified yesterday that PKA’s financial standing would have worsened if it had purchased the land.
“Even if the Government had given a 50% subsidy for the project, it would still be in deficit.
“It could not afford to buy the land,” he said, adding that it did not have solid internal finances for such a purchase.
He said this during his examination-in-chief by Deputy Public Prosecutor Datuk Tun Abdul Majid Hamzah.
Abdul Rahman also told the court the Finance Ministry, via senior official Abdul Rahim Mokti, had proposed for PKA to purchase the land with a loan from the Government.
He said this transpired during a meeting chaired by Abdul Rahim on Nov 2, 2000, which involved senior officials from the Finance Ministry, Transport Ministry and the Valuation and Property Services Department, as well as PKA.
“For this, PKA was asked to provide a cash flow projection to evaluate whether it could afford to finance (the acquisition) and the government loan repayment,” he said.
He added that the Finance Ministry had also suggested that PKA issue bonds to help with its loan repayment.
He said the details of this meeting were disclosed to former Transport Minister Tun Dr Ling Liong Sik in a memorandum dated Nov 6, 2000.
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 Port Klang Free Zone project.
He faces two optional charges of cheating the Government by not exposing to the Cabinet facts pertaining to the interest rate, and deceiving the Cabinet 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.
Dr Ling is said to have committed the offences at the Prime Minister’s office in Putrajaya between Sept 25 and Nov 6, 2002.http://www.blogger.com/img/blank.gif
Hearing before Justice Ahmadi Asnawi continues today.
Source : The Star
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