Ditamas director Shamsuddin Hayroni maintained that RM3.5 million was too low a price for the mansion and properties situated on lots 8 and 10 off Jalan Suasa in Section 7 Shah Alam.

The reasonable price that he expected, he said, was the RM5.5 million that he wanted instead.

He also reiterated his stand that he “had no option” but to agree to sell the properties to former Selangor MB Mohd Khir Toyo at a low price out of “fear that his business and ongoing projects in Selangor will be adversely affected”.

NONE He told the Shah Alam High Court this while being cross-examined by defence counsel Kamarul Hisham Kamaruddin, on the seventh day of Khir’s corruption trial.

Kamarul had pressed Shamsuddin ( left ) to admit that the RM3.5 million was instead a reasonable price for Khir to quote as the then-MB had no reason to believe otherwise, with the information he had at hand.

The defence attorney quoted a previous government valuation of the property which stood at roughly RM4.3 million.

He posited that that valuation was of a completed building, while the property when it was bought by Khir was at 60 percent completion from renovation works. He suggested that it was reasonable for the price to be lower for an uncompleted building.

Kamarul also said that Shamsuddin, who had earlier obtained a valuation of the property from valuer Trans Asia at RM5.5 million, failed to disclose this fact to Khir, hence depriving him of a fair chance at arriving at a better price and providing a basis for his higher selling price.

Shamsuddin however remained steadfast that the amount was not reasonable, adding that it was not necessary for him to show Khir the Trans Asia valuation report as he had conveyed to the then-MB in their discussions that he wanted the RM5.5 million figure, which he believed is the reasonable figure.

Bank’s report valued properties at RM3.5 million

Kamarul countered by further disclosing that a valuation report commissioned by Khir’s bank released just two days prior to a Ditamas resolution agreeing to sell the properties in question valued the properties at RM3.5 million, the exact price in the resulting sales and purchase agreement between Ditamas and Khir and his wife for the sale.

The defence is positing that Shamsuddin arrived at the decision to sell the properties at the lower price on his own and without having been coerced or out of fear as Khir’s asking price had as its basis the bank-commissioned valuation report.

khir toyo mansion 060709 Kamarul also suggested that when a dispute arose between Shamsuddin and Khir over the selling price, Khir suggested that they depend on the valuation report to be prepared by his bank. He added that the reason the price was at RM3.5 million was because the valuation report arrived at the figure.

However, Shamsuddin disputed Kamarul’s argument, saying instead that the valuation report commissioned by Khir’s bank is only for the purposes of securing the loan and thus may not be complete. He also maintained that he only agreed to the low price out of fear.

Kamarul, however, challenged Shamsuddin’s assumptions, saying that as someone who is not an expert valuer, he does not know if there is a different method used to evaluate houses for loan purposes and others.

The defence then requested the court to adjourn until after lunch to allow their members to discuss on their next course of arguments. To this judge Mohtaruddin Baki agreed. Proceedings will resume at 2pm.

Khir is being charged under Section 165 of the Penal Code for receiving bribes while a civil servant.

The Sungai Panjang state assemblyperson allegedly received the bribe in the form of a large discount in the price of the property sold by Shamsuddin to Khir in 2007.

The Ditamas director was jointly charged with Khir and also faced a separate charge of abettment, but was mysteriously discharged and released one day before he changed his statement to the Malaysian Anti-Corruption Commission (MACC) and two days before he suddenly turned star prosecution witness.

Shamsuddin: Khir asked me not to implicate him