A senior government valuer testified today that at the amount quoted for the controversial Port Klang Free Zone (PKFZ) land including interest payment, however, an excess of interest of RM720million was still paid.

NONE Former Valuation and Property Services Department (JPPH) director Sahari Mahadi told the Kuala Lumpur High Court  hearing former transport minister Dr Ling Liong Sik’s corruption trial that six percent was included when Port Klang Authority (PKA) decided to buy the 999.5 acres of land from Kuala Dimensi Sdn Bhd (KDSB) for RM1,088,456,000.

Sahari, the second witness to testify today, confirmed the prosecution’s claim that PKA overpaid KDSB by including another 7.5 percent per annum which caused the total amount to inflate to a staggering RM1.8billion.

Deputy Public Prosecutor (DPP) Tun Abdul Majid Tun Hamzah asked Sahari to explain the cost for the 830 acres out of the 999.5 acres land which was sold at RM25 per square foot (psf).

azlan Sahari replied that it did and the RM25 psf was the amount quoted in the event the government chooses to defer payments over a period of 10 years as agreed by the buyer and the seller.

The 63-year-old retiree explained to Justice Ahmadi Asnawi that the JPPH headquarters concluded their valuation and decided to give their price per square foot at RM18 at first.

However, KDSB, based on their own private valuation findings, had offered to add “special value”, thereby hiking the cost per square foot to RM25, said Sahari.

“Was the RM25 psf an offered price (harga tawaran) or claimed price (harga tuntutan)?” asked Tun Abdul Majid.

“(...) KDSB asked for RM23.15 psf or higher but this amount was not agreed by JPPH and both parties finally agreed a price for the special value at RM20.75 psf which was rounded up to RM21,” replied Sahari.

He added that if PKA was to pay in cash for the land the price per square feet would be at RM21, however, if payment is delayed over a period of 10 years the cost would be RM25 psf.

The court adjourned soon after as the prosecution had left behind documents that were supposed to be submitted.

Amended principle and alternative charges

Ling today claimed trial to amended principal and alternative cheating charges.

According to the main charge, he was accused of deceiving the Malaysian government between Sept 25 and Nov 6, 2002 by deceiving the cabinet into agreeing on the land purchase in Pulau Indah for the PKFZ project according to the terms agreed to between Kuala Dimensi Sdn Bhd and Port Klang Authority.

In the amended charges, the prosecution said that Ling concealed facts regarding an interest of 7.5 percent per annum in addition to the cost of the land which was priced at RM25 per sq ft which summed up to RM1,088,456,000.

On the first count, Ling is alleged to have deceived the cabinet into agreeing to the terms of purchase between Kuala Dimensi Sdn Bhd (KDSB) and Port Klang Authority (PKA) and giving its approval for the purchase.

He was said to have committed the deception with the knowledge it could cause wrongful losses to the government and despite being bound by a fiduciary duty to protect the government.

The charge, under Section 418 of the Penal Code, carries a maximum sentence of seven years imprisonment or fine or both upon conviction.

Ling faces an alternative charge of similar cheating for deliberately concealing facts related to the project from the cabinet.

The charge, under Section 417 of the Penal Code, is punishable by imprisonment of up to five years or fine or both upon conviction.

The trial resumes tomorrow morning with Sahari on the stand.