Former Perwaja Steel managing director Eric Chia's criminal breach of trust trial was today adjourned to Sept 16 to allow the prosecution to record statements from witnesses overseas in relation to a RM76.4 million payment remitted by Perwaja Rolling Mills and Development in 1994 to a foreign bank account.

In an unusual move, Kuala Lumpur Sessions Court judge Akhtar Tahir allowed the adjournment after being told that the prosecution - led by attorney-general Abdul Gani Patail - was temporarily shifting its case to Hong Kong and Geneva and possibly Japan.

Senior deputy public prosecutor Mohd Yusof Zainal Abiden informed the court that the prosecution would be going to two countries to record testimonies from several witnesses.

The interviewing of the witnesses is being undertaken via a Mutual Assistance (Criminal Matters) Act 2002 signed between Malaysia and Hong Kong and Switzerland.

This is the first time that the Act is being used - it empowers, among others, the court in both countries to take testimonies from witnesses involved in the case.

"The recording of statements from these witnesses will be in relation to the accounts of Frilsham Enterprises Incorporated (with American Express Bank)," he said, adding the matter was scheduled to begin on Aug 23 at Hong Kong's Eastern Magistrate Court.

Mohd Yusof also said the prosecution had made arrangements for Chia and his counsel to be allowed to attend the oral examination of the witnesses.

'Short notice'

Chia's lead counsel Muhammad Shafee Abdullah expressed dissatisfaction over the short notice given by the prosecution to the defence team regarding shift in venue.

"We don't know how the legal system in Hong Kong works under the Mutual Assistance Act. I don't know if we will be allowed to take part in the questioning of witnesses or if we have to engage Hong Kong lawyers to represent us," he said.

"Nevertheless, the whole (five-man defence team) will be there even if we are to be represented by Hong Kong lawyers as they will have no clue of the case unless they are fed with information."

Yusof then told the court that the date was fixed by Hong Kong court officials and that the prosecution had informed the defence as soon as they could.

Meanwhile, Chia appeared puzzled at the latest development and was heard questioning his lawyers soon after the court stood down.

"Why can't they come here to testify?" Chia was heard asking repeatedly. He was then showed a copy of the Mutual Assistance Act which was enforced in June 2003.

The prosecution team did not give any reason on why the witnesses were not brought to Kuala Lumpur to appear before the court.

Four witnesses

Outside the court, Shafee told reporters that the prosecution had indicated that there would be at least four witnesses involved in the judicial excursion.

"They intend to record the oral examination of the witnesses and later introduce this as evidence in this court. I don't know if they can do that ... we might object."

Chia is charged with making an unauthorised payment of RM76.4 million to NKK Corporation (Japan) on Feb 22, 1994 via the accounts of Frilsham Enterprises Incorporated.

He also faces an alternative charge of illegally entering into an agreement with NKK to dispose 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 a maximum 20-year jail sentence.