The trial of former transport minister Dr Ling Liong Sik, who is accused of cheating in the Port Klang Free Zone (PKFZ) land deal, resumed today with former prime minister Dr Mahathir Mohamad continuing with his testimony.

Responding to the lead prosecutor and deputy solicitor-general II Tun Abdul Majid Tun Hamzah, Mahathir said the land price of RM25 per square feet (psf) for the 1,000-acre plot, or RM1.1 billion, did not include interest.

NONE He said the RM21psf price set by the Valuation and Property Services Department (JPPH) was the cash price for the land, whereas RM25.82 psf was the "contract price" between the government and the vendor, Kuala Dimensi Sdn Bhd, for which the interest was not included.

Abdul Majid: Are you saying that the government is paying further interest (on the RM25psf land price)?

Mahathir: Yes, RM21psf became RM25.82psf and not due to the interest but due to the terms of payment.

This, according to Mahathir, including the down payment of 10 percent, with no interest payment for the first two years and the with payment only starting from the fifth year after the purchase.

'Accountants have a way to calculate'

Mahathir said the appreciation of the 1,000-acre land value during the 15-year payment period also had to be considered.

"Accountants have the way to calculate, so that it will lead to RM21psf on cash price basis in the end," he said.

Mahathir also admitted that he had mistakenly said, during his earlier testimony, that the price of RM25psf was the cash price and today, he corrected his statement to be RM21psf.

Ling is charged with deceiving the cabinet into approving the purchase of 999.5 acres of land for the PKFZ project, which had resulted in wrongful losses for the government.

The former MCA president 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 upon conviction.

Ling, who served the government for 17 years from January 1986 to May 2003, also faces two alternative charges of deceiving the cabinet into believing that the terms of the purchase - at RM25psf plus 7.5 percent interest - were acknowledged and agreed to by the JPPH despite knowing that there was no such agreement.

The alternative charges carry a lighter sentence of five years' jail or a fine or both.

Defence representation rejected

After today's proceedings were adjourned, Tun Majid told reporters that the prosecution had rejected the defence representation for the charges against Ling to be dropped.

He said the prosecution sent the defence a letter last Wednesday informing them of its decision.

"We don't see any merit (in the defence representation)," Tun Majid added.

The defence made the representation to the prosecution to drop the charges against Ling last October, basing its arguments on Mahathir's testimony. A second representation was submitted on Dec 4 last year.