Ling: I couldn't understand land valuation calculation

Former transport minister Ling Liong Sik disagreed with questions from the prosecution during his cross-examination today, saying he could not understand the calculation for the Port Klang Free Zone (PKFZ) project land.

The questions were related to the value of the land at RM25 per square foot (psf) for the purchase of the land from Kuala Dimensi Sdn Bhd (KDSB) for the PKFZ project at RM1.088 billion, which included interest and other costs.

In his testimony, the former MCA president pleaded ignorance and said he did not understand how the calculations were made.

This was despite a letter from the Valuation and Property Services Department (JPPH) dated May 11, 2000, with an annex showing the calculations, which was addressed to him.

“I disagree, but I do not understand what it means,” Ling said in replying to DPP Tun Abdul Majid Tun Hamzah, who is also the head of the Prosecution Division in the Attorney-General’s Chambers.

Earlier, Tun Abdul Majid ( right ) read out the annex that said the land price according to JPPH’s evaluation of the 1,000-acre plot RM18psf or RM650 million, and when KDSB asked for “a special price”, the department increased its valuation to RM21 psf or RM759 million.

However, Tun Abdul Majid in reading out the document said the RM21 psf consideration was if payment was made in cash. However, as the calculation was made for payment over a 10-year period or more, and with interest, JPPH agreed that the price, including interest, be RM25psf.

Yesterday, Ling, in replying to questions from his counsel Wong Kian Kheong, admitted that he normally did not read the annexes to letters addressed to him.

Throughout his testimony in his defence, Ling denied knowledge of the documents signed by him and addressed to the cabinet or the then-prime minister, Dr Mahathir Mohamad, as they were prepared by his senior officers.

Ling is accused of cheating the government by concealing from then premier Dr Mahathir’s cabinet the existence of an additional 7.5 percent interest rate per annum on the purchase price of the land for the PKFZ project.

The Valuation and Property Services Department had fixed the price for the land at RM25ps, or RM1.09 billion, including coupon interest.

Ling was charged on July 29, 2010, under Section 418 of the Penal Code, which carries a penalty of up to seven years in prison, or a fine, or both.

He faces two alternative charges of cheating and intentionally omitting information in his report to the cabinet on the additional interest rate, which carries up to five years’ jail or a fine, or both.

‘I cannot remember’

Throughout today’s proceedings, many of Ling's answers to questions posed by Tun Abdul Majid were that he could not remember.

This even went to the extent that he could not remember his replies to his defence counsel yesterday.

In his testimony yesterday, the former transport minister replied that the documents were shown to him only after he was charged.

The DPP then showed Ling his statement recorded by the police before he was charged, which said that the investigating officer had shown Ling the relevant documents when taking down his statement.

Tun Abdul Majid: I put it to you that the police had shown you these documents P73 (brief note as transport minister) dated Oct 29, 2002, and P74 (note from transport minister) before you were charged?

Ling: I cannot remember.

Similar questions were posed to Ling with regard to other documents, including cabinet minutes, the Transport Ministry’s minutes and other documents, to which the former minister replied that he could not remember.

At one stage, Ling asked the court for time to read the documents again, despite his lawyer Wong having read out and showed them to him yesterday and the day before.

This prompted Tun Abdul Majid to respond, “Yes, you can have the luxury of reading them.”

At one point, Tun Abdul Majid remarked that he “will jolt Ling's memory”.

Cabinet minutes: Price was high

Tun Abdul Majid also pointed out that the cabinet minutes dated Oct 2, 2002, which Ling also attended, showed that the cabinet complained that the purchase price and to develop the land was too high.

To this, Ling, who was transport minister for 17 years, said from his memory, nobody said that the cost was too high.

“I cannot remember the excerpt in the minutes,” he said.

Tun Abdul Majid:

How sure are you that no one complained, whereas in the minutes of the meeting you attended, the cabinet had complained about it.

Ling: I cannot remember. My concern was not the price. Another agency, the JPPH, will decide whether it is too high. Furthermore, PM's special economic adviser Ali Abul Hassan Sulaiman states that his finding was that the project was viable.

Tun Abdul Majid:

So, can you remember who said that the price was too high?

Ling:

I do not know who said it.

Shown a letter addressed to Ling, dated Oct 30, 2000, from former KDSB chief executive officer Tiong King Sing proposing to develop the land by providing basic infrastructure for the Transhipment Mega Hub Project on a turnkey contract, Ling said he did not object to it.

“I have no objection to the application as contracts are under a division in the Treasury. At that point of time, the Treasury was under Tun Daim (Zainuddin, above, right ) who was finance minister.

“Tiong told me that he had talked to Daim about it and therefore, I had no objection,” Ling said.

Asked by Tun Abdul Majid whether it would seem that he was supporting the proposal, Ling said he “had no right to do that”.

Tun Abdul Majid:

I put it to you that you, and not the Finance Ministry, proposed to the government about Tiong's proposal and this was supported by you.

Ling: I disagree.

The hearing before Justice Ahmadi Asnawi will continue from Sept 24 to 26.