Monday, October 10, 2011

Ex-Treasury man: I did not tell Dr M that PKFZ project not viable

A retired senior Treasury official told the High Court that he had never informed the finance minister that a land deal for the Port Klang Free Zone (PKFZ) project was not economically viable.

Former Treasury deputy secretary-general Abdul Rahim Mokti (pic), testifying under cross-examination, was referring to former prime minister Tun Dr Mahathir Mohamad, who was also the finance minister in 2002. The deal involved a 404.5ha piece of land in Pulau Indah.

Questioned by lawyer Wong Kian Kheong (counsel for former transport minister Tun Dr Ling Liong Sik), Abdul Rahim said he had also not conveyed such an information to either his boss then – Treasury secretary-general Tan Sri Shamsudin Hitam – or the Port Klang Authority (PKA).

He, however, admitted that he was not aware until yesterday that the then Special Economic Adviser to the prime minister, Tan Sri Ali Abul Hassan, who had been tasked to look into the viability of the project, found it to be economically viable via the proposed land purchase – as reported to the Cabinet on Nov 6, 2002.

Neither did he convey such information to the Public Accounts Committee (PAC) nor the police when investigations were carried out over the PKFZ scandal.

Wong had also put it to him that his (Abdul Rahim’s) understanding there had been double-counting of interest – when the land was sold at RM25psf with a 7.5% interest rate – was wrong.

Abdul Rahim, who was also previously a PKA board member, disagreed.

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 in the land purchase 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 the facts on the land purchase at RM25psf and 7.5% interest were certified and agreed to by the Valuation and Property Services Department when he knew that 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.

Hearing continues on Monday.

Source : The Star

Related News : Retired Treasury official says bonds were issued over PKFZ land deal

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