A former transport ministry official said she had once “advised” Dr Ling Liong Sik that it would be better to acquire land - rather than buy it - for the Port Klang Free Zone (PKFZ) project which has since run into severe problems.

Testifying in Ling’s corruption trial today, then secretary-general, Zaharaah Shaari said this was during a discussion as to whether a hefty purchase price should be paid or if the 999.5-acre site in Pulau Indah could be acquired at a lower cost.

Zaharaah, 62 and now retired, said she had raised the concerns to Ling - then the transport minister - during negotiations with the landowner Kuala Dimensi Sdn Bhd, but could not recall the date.

NONE “... I told him (Ling, wearing jacket) the best way to was acquire”, adding that this was prudent advice because the development of the mega-transhipment hub was in the interests of the rakyat.

She was also asked if it was the secretary-general’s duty to inform the minister if “his orders and decisions or cabinet decisions” would be in conflict with the public interest.

“Generally, if we know of (something that) may break the law, we need to advise... as fast as possible,” she told the Kuala Lumpur High Court when cross-examined by defence lawyer Wong Kian Kheong.

"I remember telling him that acquisition is the best way, that's how the government goes about doing it usually."

Wong: Do you agree that the accused had no preference whether to acquire or buy, so long as it was for PKFZ?

Zaharaah: Agreed.

She denied any personal knowledge of the Valuation and Property Services Department (JPPH) valuation of the plot, although she was directly involved in the project.

ong tee keat pkfz klang visit 060508 12 Yesterday, she said that, to her understanding, the price of RM25psf for the plot included added value to the development of PKFZ, six percent interest and a repayment period of 10 years.

She also said she was told by her subordinates that the land value, if paid for upfront, would cost RM21psf.

In finalising the land deal, PKA and KDSB had agreed on a revised proposal of 10 percent deposit, deferred payment period of 15 years, and 7.5 percent interest rate, among others.

Last month, the prosecution had established that PKA had bypassed procedures in inking the PKFZ land deal on Nov 12, 2009 even before the cabinet had given official approval.

altantuya razak baginda mongolian murder 270607 wong kian kheong However, when Wong (left) asked Zaharaah to point out paragraphs in JPPH valuation document dated Sept 29, 2000 specifying that RM25 psf was an all inclusive amount, she admitted that she came to the conclusion on her own.

Wong established that Zaharaah neither had experience nor relevant training in property valuation.

Ling is charged committing deception with the knowledge it could cause wrongful losses to the government and despite being bound by a fiduciary duty to protect the government.

He is said to have committed the offence at the Prime Minister's Office in Putrajaya between Sept 25 and Nov 6, 2002, and also faces two optional charges:

  • Cheating the government by not revealing to the cabinet the facts relating to the interest rate; and
  • 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, when he knew there was no such consent.

Ling makes ‘correction’ from the dock

Wong later showed the minutes of a cabinet meeting dated Feb 21, 2001 to the witness, to prove the cabinet had been informed of the PKFZ project costs totalling RM 2.44 billion, inclusive of interest.

The costs consist of the RM869 million development price, and the land price (including basic infrastructure) of RM1.088 billion .

Wong, putting forward his theory, claimed that the balance of RM483 million should be interest, and Zaharaah eventually agreed to it.

This contradicted Zaharaah’s statement earlier, where she firmly claimed RM25 per square feet or RM1.088 billion, should be included as interest.

Wong had made a minor mistake at first by saying the interest was RM283 million, and Ling anxiously put up his hand and shouted, “Hello, hello, the figure is a mistake” from dock.

Judge Ahmadi Asnawi advised the counsel to do his homework before entering court.

The trial adjourned until tomorrow, where the same witness will continue to take the stand for a third day.