LIVE REPORT | The much-watched corruption trial of Penang Chief Minister Lim Guan Eng involving his purchase of a bungalow from businesswoman Phang Li Khoon resumed today with the prosecution presenting 14 witnesses.

Yesterday, Lim's lead counsel Gobind Singh Deo grilled Malaysian Anti-Corruption Commission’s main witness Muhsin Latheef, a Facebook marketer, and tried to demolish his allegations against the chief minister.

Gobind showed that Muhsin, also known by his pen name "Mamu Parpu", is a hardcore supporter of Prime Minister Najib Razak.

Gobind claimed the attack against Lim was a "political conspiracy" and furnished proof of Muhsin's social media account which called for support for BN in GE14, accompanied by the hashtag "Kami gang Najib" (We are Najib's gang).

Gobind also showed Muhsin (photo), who lodged a corruption report against Lim at the MACC and police, had no expertise in property value, or knowledge of when Lim purchased the bungalow or signed the sales and purchase agreement, and therefore was not likely to have any evidence to back his claims.

The trial is to go on for 35 days with 55 prosecution witnesses, and in the coming days, the argument will most likely centre on establishing that Lim bought the bungalow below market value.

The other 10 persons yesterday were formal witnesses, who testified Lim's official details such as his marriage to Betty Chew and his appointment as chief minister in March 2008.

Follow Malaysiakini Live report today for updates on the trial today.


3.20pm:  Hadhariah ends the court session for today and postpones the trial to April 9.

She says the reason for the postponement is due to Gobind's official business.

Gobind says "thank you and sorry".

2.30pm: Court resumes and the prosecution calls four more formal witnesses.

12.28pm: Court adjourns to 2.30pm.

12.24pm: Betty walks and the witness identifies her.

Gobind then stands up to cross-examine the witness, asking: "When carrying out your work, was Betty there? I put it to you that she was not present."

After mulling the question for a while, the witness then said: "I do not remember."

Gobind says he has no more questions to ask.

Mohd Zain asks the witness to tell the court that he had earlier said Betty was present at the renovation works.

Witness answers "I don't know".

Mohd Zain: Are you sure she was not there?

Witness: Not sure.

Some renovation done

12.15pm: Prosecution calls its 10th witness, Lim Kin Ban, an electrical contractor.

Hadhariah asks the purpose of calling for this witness.

Prosecutor Mohd Zain Ibrahim says it is to ask about renovation works at the bungalow in 2009.

Hadhariah tells Kin Ban to just say in one paragraph what is his work.

As Mohd Zain was hesitating, Hadhariah asks him to "ask quickly".

Mohd Zain: When you were carrying out the renovation work, was Phang present?

Witness: Yes.

Mohd Zain: Who else was present? Was Madam Betty also present?

Betty is called in to be identified.

11.15am: Prosecution witness Yeoh Peng Hong, a senior business development manager of Henry Butcher Malaysia (Penang).

In his witness statement, he refers to his Report and Valuation of the Jalan Pinhorn Bangalow dated Nov 21, 2008.

He says he prepared the report before it was submitted to Teoh Poh Huat, his director.

He says the report and valuation were requested by Yeoh Yit Pheng, of Public Bank Berhad on Bishop Street.

"The purpose of the report was to know the value of the property on Nov 21, 2008, and for "loan/credit security purposes" applied by Phang," Peng Hong tells the court.

He says he went to inspect the unit on Jalan Pinhorn after he was directed to do so by his boss Shawn Ong Kha Boo.

"The unit is in a strategic location, only 4.2km from the city centre. It is 944 square metres or 10,161 square feet."

11.05am: Prosecution witness Soon Looi Ping, is the owner of Soon Decor Enterprise.

Soon says he carried out renovation works at the bungalow in May 2009. He was contacted by one Ah Yong to do the work. At the time, he was contacted to do repairs and changes to the doors in the unit.

Soon says he was not aware that the house belonged to Guan Eng. But Ah Yong told him the house belongs to his boss. The total cost of changing the doors was RM14,600.

"At the time I was doing the work, there was no one staying in the bungalow," Soon says.

There is no cross-examination from Guan Eng's legal team.

11.00am: Court proceedings resume.

10.50am: Hadhariah calls for a 10-minute recess.

During recess time, Gobind explains to reporters that the price of the bungalow was agreed prior to 2013, when Lim applied for a loan to purchase the unit. The unit was purchased in 2015.

"The value of the property is to be attached or judged at the time it was agreed."

Bungalow cost RM2.5 mil in 2008

10.30am: Prosecution calls its fourth witness, Teoh Poh Huat, a director of property evaluator firm Henry Butcher Malaysia, Penang branch.

In his statement, Teoh relates how a unit is usually evaluated. A report will be prepared and sent to the bank.

He says that evaluators would usually compare the price of neighbouring units.

"After seeing all factors, the price of Lim's bungalow when Phang bought it in 2008 was RM2.5 million," said Teoh.

"The forced sale value of the unit is RM1.85 million, while the fire insurance value is RM600,000," added Teoh, who has 13 years experience as a valuation officer.

There was no cross-examination from Gobind.

10am: Gobind continues to ask the witness if it is correct that when a person intends to buy a house, the price will be negotiated first then the written official agreement will be formalised.

The witness agrees.

Gobind says the purchase of the bungalow is different from buying things from the market. In the market, we buy and take the goods immediately. End of it. Transaction complete on the spot, but certainly not the case in property purchase.

Witness: Correct.

Gobind (photo) says there are things in law to be completed before the sale of the property is transacted. Normally an agreement to buy the house needs three months to settle. It is not unusual to have more time to finalise the agreement. It may take six or 12 months.

Witness: Agree.

Gobind: In your experience, time is needed to check out the title of the property. Time is required also to check out if there was a previous loan.

Witness: Correct.

Gobind: The price of the property is usually agreed earlier. In your knowledge, when will the transaction be completed?

It is usually after the sales and purchase agreement is signed, and all requirements met. At times, the price of the property will be different by then. But the agreement will be based on the price earlier negotiated and agreed upon.

Witness: Agree.

Gobind: Do you know when was the price of the bungalow agreed upon?

Witness: I do not know.

Gobind: It was done during the first quarter of 2012. The price of the bungalow was negotiated and agreed during the time and then the application for an RM2.15 million loan was made. The price of the property agreed was RM2.8 million.

Witness: Correct.

9.48am: Gobind cross-examines Lim (Wen Shern). The witness is now a certified financial planner. In Citibank, he worked at the mortgage department.

"You are also involved in housing loan. Can I say that you have the knowledge and experience in sales and purchase.”

Witness: Yes.

"You said in August 2013, you were contacted by Betty who expressed interest to obtain a housing loan from your bank and this was for the purchase of buying a home at No 25, Pinhorn, George Town.

Do you know when GE13 was to be held?”

He says he did not know. He does not remember that it was in May that year.

The witness confirms that the total price of the bungalow was RM2.8 million.

Citibank sales manager testifies

9.33am: The first witness today is a sales manager from Citibank, Lim Wen Shern. Guan Eng’s wife, Chew, contacted him to expressed intention to get a loan from the bank to buy the bungalow on Jalan Pinhorn in 2013.

The loan amount is RM2.15 million. The loan is to be under the name of Guan Eng. However, the loan was not immediately activated.

The witness confirms that a new loan agreement was signed in 2015 as the one signed in 2013 had lapsed. He also confirms the purchase of the property by Guan Eng from Phang in 2015.

He identifies Guan Eng and Phang (photo) by pointing at them. Chew is called in for him to identify her. She was waiting outside the courtroom as she is expected to be a normal witness today.

9.30am: Lim, walks into the courtroom, accompanied by his wife, Chew. They are greeted by Phang. Hadhariah enters the courtroom.

"Anymore more formal witnesses?" Hadhariah asks the prosecution. Masri said, “Yes.”

9.20am: The courtroom is already filled to the brim. Lim's lawyers are seen ferrying several boxes of documents into the room, while the prosecution team led by Masri Mohd Daud take their position in front of the bench of the presiding judge Hadhariah Syed Ismail.

7.00am: Reporters have begun to line up to get their passes to cover Lim's trial. This is to avoid being barred from covering the trial as places are limited to only 20 news outlets.

About 10 supporters of Lim, all women in black, are seen gathered at the courthouse, hoping to get early passes into the courtroom.