The contract documents for the Port Klang Free Zone (PKFZ) project were not prepared by the Port Klang Authority's (PKA) legal panel, the Sessions Court here was told yesterday.

NONE PKA's legal advisor Fazeilah Surkisah Mohammad, 46, said the documents were prepared bythe law firm of Rashid Asari & Co which was appointed especially for the purpose.

"Their appointment was done by PKA's managing director at the time, Datin Paduka O C Phang, who subsequently informed PKA's board of Nov 15, 2002," she said to a question by Lead Prosecutor Dzulkifli Ahmad who is also Head of the Forfeiture Unit, Prosecution Division, Attorney General's Chambers.

Fazeilah was a witness today in the cheating trial of Kuala Dimensi Sdn Bhd Project Manager Law Jenn Dong, Architect Bernard Tan Seng Swee from BTA Architect and Kuala Dimensi Sdn Bhd's chief operating officer Stephen Abok.

She further told the court that on Nov 15, 2002, lawyer Rashid Asari was not in PKA's legal panel.

She said PKA then had its own legal panel which included the law firms of Nik Saghir & Ismail and Yaakob and Associates but they were not involved in the preparation of the agreement for the project.

port klang free zone pkfz white elephant 280509 She said there had been six agreements between PKA and Kuala Dimensi Sdn Bhd, the turnkey contractor for the PKFZ project.

When asked why she, as the PKA's legal advisor at the time, was not involved in the agreement preparation, Fazeilah said she was not well-versed in drawing up a contract that had less to do with the core function of PKA.

"My involvement was very limited, which was just to attend meetings, examine the documents to ensure they were done according to the GM's instructions," she said.

She also said she had seen the three accused in the meetings held between PKA and Kuala Dimensi.

Referring to some agreement documents between the two parties, which among them was the Transhipment Mega Hub/Free Zone Area Phase One Contract signed on Feb 27, 2003, Fazeilah said the signing was done by Phang and PKA General Services Manager Husnah Abdul Hamid Karim.  

Fazeilah said the agreement dated Feb 27, 2003 was for the purpose of land development which was secured by PKA through a sale & purchase  agreement with Kuala Dimensi on Nov 12, 2002 which was linked to the development of the tax-free transhipment mega hub/zone.

She said among the development planned on the land was a high-tech office, infrastructure facilities for transhipment, factory for small and medium industries, as well as a godown, totalling at an estimated tentative cost of RM400million with the final costs to be finalised by Kuala Dimensi and agreed to by PKA.

During today's proceedings, Dzulkifli also referred to the development project plan and asked Fazeilah to tell the court as to the whereabouts of the Phase One project, to which defence counsel for Law, Tan Hock Chuan, stood up and objected, saying it was difficult to follow and understand the witness' explanation.

He complained that the project development plan copy given to the defence was small and incomplete.

"Can't see at all. Very difficult to follow. Please continue tomorrow and the prosecution needs to prepare a bigger layout plan," said Tan.

Judge Asmadi Husin then adjourned hearing to Thursday while Dzulkifli said he would try to get a whiteboard for the defence to have a clearer picture of the development plan.

At today's proceedings, Stephen, 53 was represented by counsel Hisham The Poh Teik while Bernard Tan , 50, by V Sithambaram.

Law, 53, Stephen and Bernard Tan pleaded not guilty on Nov 8 2010 to 24 alternative charges of cheating OSK Trustees Bhd involving a payment totalling RM116.85 million to Kuala Dimensi for two projects in PKFZ at OSK Trustees Bhd, Plaza, OSK Ampang between June 30, 2006 and June 20, 2008.

Stephen and Bernard Tan also claimed trial on Nov 8, 2010 to two more alternative charges of cheating OSK Trustees between July 31, 2007 and Oct 8, 2008. They were alleged to have misled the company into paying RM5.42 million to Kuala Dimensi for a Power Supply project to PKFZ, which had actually not been implemented.

Each of the charge under Section 420 of the Penal Code provides for a maximum jail term of 10 years and whipping, plus fine, if convicted.

Stephen and Bernard Tan had also pleaded not guilty to two main charges of cheating the PKA relating to the RM5.42 million claim on July 31 and Sept 21, 2007.

Bernard Tan and Law are facing 24 main charges of cheating PKA to obtain confirmation of the payment amounting to RM116.85 million to Kuala Dimensi involving two projects between June 30 2006 and May 30, 2008.

- Bernama