Port Klang Free Zone turnkey contractor Kuala Dimensi Sdn Bhd's chief operating officer Faizal Abdullah has been ordered by the High Court in Kuala Lumpur to testify in former transport minister Dr Ling Liong Sik's cheating trial.

port klang free zone pkfz white elephant 280509 Judge Ahmadi Asnawi rejected Faizal's application to set aside a subpoena issued to him on April 3, thus compelling him to give evidence in Ling's defence.

"I find there is no merit whatsoever (in this application) because the applicant was involved in meetings on the price of the (Port Klang Free Zone) land. So, in my opinion, his testimony is relevant and may help the defence.

"Therefore, I reject this application," Justice Ahmadi ruled.

Earlier today, Faizal's lawyer K Kumaraendran argued in court that Ling's defence had failed to demonstrate that Faizal was a material witness in Ling's defence.

Pointing out that the charge was of cheating the cabinet, Kumaraendra said: "Faizal is an employee of KBSB and would not know what transpired in the cabinet. He is not privy to the discussions between (Ling) and the cabinet."

However, Ling's counsel Wong Kian Kheong clarified that the charge was of cheating the government by lying to the cabinet.

Wong then read out parts of three minutes of meetings to show that Faizal was a party to meetings between KDSB and government officials to discuss the repayment for the PKFZ land.

'Faizal was at meetings on PKFZ land'

"Clearly, the applicant attended these meetings with the Valuation and Property Services Department (JPPH), Ministry of Transport, and the Ministry of Finance, which were closely connected to cheat the government," he said.

Ling is fending off charges of cheating the cabinet into approving the purchase of 999.5 acres of land for the PKFZ project, which allegedly resulted in the losses.

He supposedly did this by concealing an additional interest of 7.5 percent per year on top of the land price of RM25 per square foot, or RM1.08 billion.

NONE Ling was on July 29, 2010, charged 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.

KDSB is the PKFZ project’s turnkey developer and Faizal was the company’s deputy chief executive officer at the time.

Faizal ( left ) had previously refused to appear in court after a subpoena issued to him last year had lapsed and was not extended.

He had also supposedly instructed Kumaraendran in March to get any fresh subpoena issued against him to be set aside, which he attempted today.

When the sitting resumed after lunch break, Faizal took the witness stand. He was on the stand for about two hours, explaining the price negotiations for the PKFZ land between KBSB and the government.

Wong showed Faizal several minutes of meetings and correspondence related to the negotiations and questioned him on these.

Among others, Faizal was asked, several times, whether the land prices were inclusive of interest, and whether this was disclosed to the government officers involved in the talks.

At each turn, Faizal replied that the price, which was initially RM28 per square foot before gradually slipping to RM25psf, did not include interest, which would be added on later. This was also made known to the officers involved in the negotiations.

'Change of heart on part of government'

In addition, he said, there was a change of heart on the part of the government and it decided to acquire the land by using the Land Acquisition Act, despite years of negotiations on a willing-buyer-willing-seller basis.

Faizal said KDSB was upset with the decision to acquire and submitted an appeal against it to then prime minister Dr Mahathir Mohamad and then deputy prime minister Abdullah Ahmad Badawi.

NONE “I met with prime minister Mahathir to explain the situation,” he said when asked if the appeals had led to any meeting with the government.

Faizal also revealed that a partner in the project, Jabel Ali Free Zone Incorporated, had been threatening to pull out if there was no go-ahead from the government by June 2001.

The backers of the PKFZ project, he said, began losing interest in it because of delays and began looking for other business opportunities.

He blamed the delays on government bureaucracy and pleaded for patience from the other backers, but to no avail.

Faizal is to continue with his testimony when hearing resumes tomorrow.