Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop has changed his testimony in the High Court over the issue of a “letter of support” by former Transport Minister Tun Dr Ling Liong Sik by agreeing with the defence that it was not a guarantee letter.
Nor Mohamed, who was former Finance Minister II, agreed that Ling’s letter of support (for bonds issued by Special Port Vehicle Bhd (SPVB)) could no longer be interpreted as a letter of guarantee in light of Attorney-General Tan Sri Abdul Gani Patail’s testimony at the Public Accounts Committee (PAC) inquiry into the Port Klang Free Zone (PKFZ) project on Aug 12, 2009.
He said this during his cross-examination by Dr Ling’s counsel Wong Kian Kheong yesterday.
In the PAC report, Abdul Gani had given his legal opinion that Ling’s letter, dated May 28, 2003, did not amount to a guarantee letter as “it did not give any assurance that the Government would ensure that the Port Klang Authority (PKA) would fulfil the repayment amount, which is the balance consideration price including a 7.5% annual interest”.
Referring to the extracts of Cabinet minutes dated June 27, 2007, Nor Mohamed agreed with the defence that the meeting had considered the land purchase issue closed because it had received Cabinet approval in 2002, and what it was concerned with was how costs which had not yet received approval would be handled.
Later, during re-examination by deputy public prosecutor Tun Abd Majid Hamzah, Nor Mohamed said the Finance Ministry had taken the letter of support to mean a guarantee letter as the Malaysian Rating Corporation Berhad (MARC) had given the bonds an AAA rating, thinking that the letter was a government guarantee.
“So we thought the letter had elements of being a guarantee,” he said.
The issue of the guarantee letter came up last week after witness Mohd Izzuddin Yusof, who was formerly with MARC, testified that the letter of support from Dr Ling had been instrumental in securing the top-tier rating for the bonds.
On Monday, Nor Mohamed had stressed that only the Finance Ministry could issue a letter of support with the Cabinet’s approval.
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 revealing to the Cabinet facts pertaining to the interest rate, and deceiving it into believing that facts on the land bought at RM25 psf and 7.5% interest were certified and agreed to by the 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.
Source : The Star
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