Perwaja Steel's former corporate accounts director today said that although he found a payment of RM76.4 million to a Japanese company approved by his managing director to be unusual, he did not probe further as he 'did not want to get into trouble'.

Kong Keng Hee told the Kuala Lumpur Sessions Court hearing the Eric Chia criminal breach of trust trial that he did not reveal to anyone his questions on the payment fearing that it may cause him unnecessary problems.

"It was a very sensitive issue, I could have gotten into trouble," he said when questioned by senior deputy public prosecutor Mohd Yusof Zainal Abiden.

Kong said he did not raise the issue with Chia as it would deemed as questioning the latter's authority as the company's head who had approved of the payment to NKK Corporation.

"If I had probed any further, it would be questioning Chia's integrity. This was not the culture that was practised in the company then," he said.

He added the other reason he did probe further was because the payment was made in February 1994 which was prior to him joining the company five months later.

"Since I was not in charge of the company's account at the time the payment was made, I also thought that I should not get involved."

'Hard to justify payment'

Kong was giving testimony against Chia who is charged with making an unauthorised payment of RM76.4 million to NKK on Feb 22, 1994 via the accounts of Frilsham Enterprises Incorporated.

Chia also faces an alternative charge of illegally entering into an agreement with NKK to dispose of the RM76.4 million without the approval from Perwaja's board of directors.

He is charged under section 409 of the Penal Code which carries the maximum penalty of 20 years jail.

Kong however said that he started inquiring into the payment '... to satisfy my curiosity' after hearing rumours that the authorities were prying into the circumstances of the payment.

"I asked Perwaja accounts department head Vicky Chao to show me the payment voucher together with the documents that supported the payment. After examining the document, it was my opinion that it was difficult to justify the payment," he said.

He also said that the payment method was 'questionable' as the money was remitted to Frilsham which was not a party to a contract agreement between NKK and Perwaja Rolling Mills and Development.

'Done deal'

Kong then revealed that although he kept silent, the matter was once raised by Chia himself in a private conversation with him at which two other Perwaja directors, Ahmad Zaini and Lim Ah Chong, were also present.

"Chia said that he had asked Osada - Perwaja's Japanese consultant- to collect the receipt for the payment from NKK. About 10 days later, I received a memo from Chia with a copy of receipt from NKK," said Kong.

He said he noted something was amiss in the receipt (which was issued in a form of a letter) and decided to compare it with NKK's previous correspondence.

"I found that the receipt had different format, language style, paragraphing and that the address was not the same. Even the signature of N Otani (NKK's managing director) on the receipt did not look the same when compared with the previous letters," he said.

Cross-examined by Chia's lead counsel Muhammad Shafee Abdullah, Kong appeared flustered when he said that he had never intended to question Chia's power in authorising the payment.

"It was to satisfy my own satisfaction. That is all! His authorisation was acceptable. I was in no position to question him ... but the documentation that allowed the payment was unacceptable."

When pressed on why he did not confront the accused over the payment Kong said: "It was not for me to judge him. Anyway it was a done deal and there was nothing I could have done about it."

Hearing before judge Akhtar Tahir continues tomorrow.