Sarawak's Land Development Minister James Masing told a sessions court in Kuala Lumpur today that there was a mistake in a letter dated April 2009 by his ministry in awarding Native Customary Rights land to two local companies instead of to conglomerate Sime Darby Bhd.

The two local companies were Nature Ambience Sdn Bhd and Vertical Drive Sdn Bhd, which are allegedly owned by Sarawak businessman Chew Chiaw Ann. The land in question measured approximately 50,000 hectares.

Masing, the third witness in the trial of former Sime Darby chief executive officer Ahmad Zubair @ Ahmad Zubir Murshid ( centre in photo ), who is charged with criminal breach of trust, admitted that he only discovered the mistake this year, following the Malaysian Anti-Corruption Commission investigations.

Quizzed by defence counsel Mohd Yusof Zainal Abiden during cross-examination, Masing admitted there was a mistake in the letter by then permanent secretary Chaiti Bolhassan to award the land to the two companies.

Yusof: Sime Darby was approved by the state as investor, but this is substituted with the two companies as per this letter.

Masing: None that I can see.

Yusof: Would you agree from these letters there could be an identification to appoint the two companies?

Masing: No.

Yusof: Do you agree there was a serious mistake in the drafting of the letter?

Masing : Yes, but I was not aware.

 

Yusof: How could you not be aware of this, when you are in charge of the ministry?

Masing: I was only aware of this earlier this year, after the MACC made the investigation.

Yusof: Is this a serious mistake by your number one officer (Chiati) in drafting this letter on behalf of your ministry?

Masing: I admit it is a serious mistake but no action was taken. I do not want to ask why there was a mistake at that time.

Yusof: Isn't he answerable to you as he was the number one officer in your ministry?

Masing: Yes, he was then.

The witness said he was unaware that Ahmad Zubair and then Sime Darby chairperson, Musa Hitam, had met then Sarawak Chief Minister, Abdul Taib Mahmud, who supported the company's application.

 

CBT involving over RM100 million

Ahmad Zubair, 56, had claimed trial on amended principal charge of CBT involving more than RM100 million, and two alternative charges of cheating.

 

The charges were in connection with the acquisition of NCR land in Sarikei under the Sarawak Upstream Expansion Plan.

 

On the first charge, Ahmad Zubair is accused of failing to take or instruct legal action between Nov 17 and 28, 2008, to rectify the award of the NCR lands in KJD/Lower Julau, Sg Julau/Sg Pitoh/Sg Jiet and part of Merurun/Meluan/Entabai in Sarikei to Vertical Drive Sdn Bhd, causing Sime Darby to incur losses amounting to RM85,023,047.20 for having to acquire Vertical Drive.

 

On the second charge, he is accused of failing to take or instruct legal action between Nov 17, 2008 and Dec 4, 2009 to rectify the award of the NCR lands in the confluence of Btg Rejang/Btg Baleh, Kapit and the remaining eastern half of the Merurun/Meluan/Entabai and Julau to Nature Ambience and thus, causing Sime Darby to incur losses amounting to RM16,816,217 in having to acquire Nature Ambience.

 

On the cheating charges, he is accused of failing to inform Sime Darby’s board of directors on Nov 28, 2008 and Dec 4, 2009, respectively, that the NCR lands in Sarikei had instead, been awarded to Vertical Drive and Nature Ambience.

 

Besides Yusof the other defence counsel were Stanley Augustine and S Devanandan while MACC DPP, Kevin Morais, prosecuted.

 

Meanwhile, during re-examination by Morais, Masing denied that then cheif minister Taib ( left ) had ever given directives to him or the Special Task Force chaired by Deputy Chief Minister Alfred Jabu, to appoint Nature Ambience and Vertical Drive as the investors involved in the joint venture to develop the NCR land with Sime Darby.

 

Masing also denied that he was told by Jabu or other Sarawak cabinet ministers about purported orders by Taib that the two companies were to be appointed as investors on behalf of Sime Darby, to develop the NCR land.

 

The hearing before sessions judge Abdul Rashid Daud continues on Oct 14 and 15, when Deputy Chief Ministers Jabu and George Chan are expected to testify.