Saturday, October 8, 2011

Retired Treasury official says bonds were issued over PKFZ land deal

Kuala Dimensi Sdn Bhd (KDSB) was issuing bonds for the 404.5ha land in Pulau Indah meant for the Port Klang Free Zone (PKFZ) project, a retired senior Treasury official told the High Court.

Retired Treasury deputy secretary-general Abdul Rahim Mokti testified yesterday that he came to know between 2004 and 2006 that KDSB was issuing bonds over the land deal.

High Court judge Justice Ahmadi Asnawi asked him to clarify the statement.

“I was informed by my officers, but I don’t know what bonds,” Abdul Rahim said.

He was testifying in Tun Dr Ling Liong Sik’s trial over the PKFZ scandal.

When he was asked to refer to a Finance Minister Note which was signed off by the then prime minister and finance minister Tun Dr Mahathir Mohamad, which stated that the overall cost of the project was to be RM2.44bil he said that it showed that the MOF higher ups believed that the RM25psf was separate from the interest cost.

Rahim, who was also a Port Klang Authority board member, said although he was aware that the MOF had wanted to get the land via acquisition, he did not object to the proposals to purchase when it was brought up at board level.

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 that facts on the land purchase at RM25psf and 7.5% interest were certified and agreed to by 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 today.

Source : The Star

Related News : PKFZ case: ‘Phang did not agree with scrutiny’

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