Former transport minister Dr Ling Liong Sik has said he did not know that Kuala Dimensi Sdn Bhd (KDSB) had made use of a letter of support he had signed, to raise bonds and clear its debts in relation to land acquired for the  Port Klang Free Zone (PKFZ) project.

NONE The Kuala Lumpur High Court was told today that the letter had been issued on May 28, 2003, which was Ling’s final day in office as a minister.

He also said he did not know that the letter could enable KDSB, the turnkey contractor for the project, to raise bonds with ‘AAA’ rating.

The letter was issued to Malaysian International Merchant Bankers (MIMB) and PTB Unit Trust, the special purpose vehicles set up by KSDB, to raise bonds to clear its RM380 million debt to Koperasi Pembangunan Pulau Lumut Bhd and to lift encumbrances on the 1,000-acre plot.

abdul razak baginda altantuya case 040607 tun majid tun hamzah Ling was being cross-examined by Deputy Solicitor-General II Tun Abdul Majid Tun Hamzah (right) , in defending himself against a main charge of cheating the government.

Tun Abdul Majid: On the day you signed the letter, do you know this was for MIMB or did you think it was a normal bank?

Ling: I thought it was just a normal bank.

Tun Abdul Majid: Do you agree that you knew the letter of support was for the issuance of bonds?

Ling: I disagree.

Tun Abdul Majid: Do you agree that KDSB would not be able to transfer the land free of encumbrances if you didn’t issue the letter of support?

Ling: I didn’t know about that.

Tun Abdul Majid: Did you know that, with this letter, bonds with ‘AAA’ rating would be given?

Ling: I don’t know what ‘AAA’ is. I disagree.

Tun Abdul Majid: Did you know that KDSB would not be raising a single sen to pay off the debt?

Ling: I didn’t know.

Reliance on others

Ling, 69, is defending himself against a charge of cheating the government by concealing from the cabinet between Oct 2, 2002 and Oct 29, 2002, the existence of an additional 7.5 percent interest rate per annum on the purchase price of the land for the PKFZ project.

azlan He 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.

Ling has testified that he did not deceive the cabinet over the purchase of the land, saying that the valuation was carried out professionally by the Valuation and Property Services Department (JPPH).

He has denied knowing that there was false information in a letter he issued on June 29, 2002 to then premier Dr Mahathir Mohamad, saying he had trusted his senior officials with providing details of the deal.

“If I knew the contents were wrong, I would not have agreed to sign it and would have corrected the information,” he said, also denied that he intended to deceive Mahathir.

Tun Abdul Majid: You did not bother to ask?

Ling: Who said I never asked?

Tun Abdul Majid: If you had asked, you would have known.

Ling: (Deputy secretary-general) Datuk Abdul Rahman Mohd Noor reported to me that “everything is beautiful”.

Tun Abdul Majid: I put it to you that you lied to Mahathir.

Ling: I disagree. I do not pay attention to figures.

Tun Abdul Majid: I put it to you that you had pushed this letter to Mahathir (to agree).

Ling: I have no reason to doubt the officer.

Tun Abdul Majid: So you are saying the officer (Abdul Rahman) misled you?

Ling: ... I have no choice, I have to trust my officers.

He reiterated that he had not given attention to the figures as he felt that his duty was to obtain the land for the project. For any related data, he would rely on the JPPH and Finance Ministry.

The notes dated Oct 29, 2002 to the cabinet meeting, which he had signed, had been prepared by transport ministry officials, he said.

 

Tun Abdul Majid: You deceived the cabinet, since the purchase price of the land was RM1.088 billion and not RM1.8 billion ...

Ling: I do not agree.

Tun Abdul Majid: But here in the notes (that you signed), you stated the purchase price is RM1.8 billion.

Ling: I am only concerned about the land, not the figures. So I disagree.

The hearing continues tomorrow before Justice Ahmadi Asnawi, with Ling's re-examination by his lawyer Wong Kian Kheong.