The defence counsel for former transport minister Ling Liong Sik claimed today that the Finance Ministry’s Valuation and Property Service Department (JPPH) appeared to be in agreement over the cost of the land acquired for the controversial Port Klang Free Zone (PKFZ) project.

Under cross-examination by Ling’s lawyer Wong Kian Kheong, retired JPPH director-general Mani Usilappan agreed that he did not “expressly” raise qualms on the terms and conditions in the briefing by the representatives from Port Klang Authority (PKA) during a meeting on Jan 26, 2002.

In the minutes, PKA had briefed the Transport Ministry that they had agreed to purchase the 999.5 acres of land in Pulau Indah for RM25 per square foot (psf) in deferred payments.

Among others, PKA had also stated that the interest rate of 7.5 percent is excluded from the cost for per square feet.

Since the beginning of the corruption trial on Monday, JPPH officers had countered the terms, saying that they had approved a lesser sum.

However, Mani, 61, responded by saying that JPPH objections were “not minuted”.

Earlier on, Mani pointed out to deputy public prosecutor Manoj Kurup that JPPH “did not agree” to a deferred payment period of 15 years.

“It was 10 years and the interest agreed upon was six percent, not 7.5 percent,” he said.

NONE Manoj referred Mani to a letter written by Ling ( right in photo ) dated June 29, 2002, to then-prime minister Mahathir Mohamad.

Mani also said JPPH had proposed a five percent deposit to be paid in stages and not 10 percent, as provided in the letter.

Ling presented different facts to Mahathir

The prosecution also said that Ling did not divulge JPPH's valuation to Mahathir and that what was conveyed was different from the outcome of the discussion with government valuers.

Mani said the terms presented to in the June 29 letter, varied in matters relating to the 999.5 acres of land acquired, 15 years of deferred payment, 10 percent deposit and 7.5 percent interest rates.

Mani related that JPPH’s valuation was based on the a purchase of 830 acres of land for RM1.088 billion and payment will be made over for over a period of 10 years at a six percent interest rate after a five percent as deposit.

Mani said Ling chaired the meetings with JPPH, PKA and the Finance Ministry on January 26 and 30, 2002 where the terms and recommendations by the government valuers were discussed in detail.

Later in the hearing, Wong established that there are convincing numbers or statistics to show that the recommendations of JPPH were always followed through.

"There are no statistics to show that our advice is followed (by the government)," replied Mani.

Yesterday, Mani's then superior Sahari Mahadi said that the government listens to valuers 99.99 percent of the time.

However, Sahari admitted that the government is not bound to follow the department's recommendations.

The prosecution has amended one principal and two optional charges against Ling in relation to the PKFZ project.

Ling pleaded not guilty

Ling, 68, pleaded not guilty before High Court judge Justice Ahmadi Asnawi yesterday.

He faces an amended principal charge of deceiving the government by concealing an additional interest rate of 7.5 percent per annum to the cabinet for the purchase of 999.5 acres of land in Pulau Indah for the trans shipment hub project.

He was said to have committed the offence at the Prime Minister’s Office in Putrajaya between Sept 25 and Nov 6, 2002.

The interest rate was based on a rate of RM25 per sq ft, which worked out to RM1,088,456,000.

Ling is accused of having committed deception with the knowledge it could cause wrongful losses to the government and despite being bound by a fiduciary duty to protect the government.

Ling also faces two optional charges:

  • Cheating the government by not revealing to the cabinet the facts relating to the interest rate;
  • Cheating the cabinet into believing that the facts relating to the purchase of the land at the rate of RM25 psf and interest rate at 7.5 percent were approved and agreed to by the JPPH, an agency under the Finance Ministry, when he knew there was no such consent.
The hearing before Justice Ahmadi Asnawi continues tomorrow with Mani’s testimony.

Will Dr M suffer another bout of amnesia?