KUALA LUMPUR: Sarawak businessman Chew Chiaw Ann yesterday testified that former Sime Darby Bhd CEO Datuk Seri Ahmad Zubair @ Ahmad Zubir Murshid had said that the conglomerate would acquire Vertical Drive Sdn Bhd should it succeed in its bid to develop a 150,000ha piece of native customary rights (NCR) land.

Chew, the fifth witness to testify in Ahmad Zubair’s trial, said that Vertical Drive was a local company which represented Sime Darby to facilitate the deal with the Sarawak state government.

Among the criminal breach of trust (CBT) charges against Ahmad Zubair, one involves him being 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, causing Sime Darby to incur losses amounting to RM85,023,047.20 for having to acquire Vertical Drive.

This was among the proposals made by Sime Darby after its meeting with the then chief minister of Sarawak, Tun Abdul Taib Mahmud, on April 28, 2008 which Chew facilitated at Ahmad Zubair’s request.

Among the other proposals, according to Chew’s testimony, was that Sime Darby would invest RM400 million in Cahya Mata Sarawak Bhd (CMS) should the former succeed in its proposal to develop a 156,000ha oil palm plantation in Tatau.

Chew suggested CMS to Ahmad Zubir as Sime Darby needed a local company to facilitate the project. However, according to Chew, the deal did not materialise as Ahmad Zubair wanted to make an independent application.

Chew further testified that an understanding was made that independent company Oriental Release would act as the facilitator and represent Sime Darby in the project. In a letter to Taib Mahmud’s office dated June 23, 2008, an offer of RM300 per ha, which came up to RM 115.6 million, was made.

The state government, however, rejected this offer. Chew testified that Sime Darby said it would find out directly from the state why it was rejected.

Chew testified that he owned Oriental Release which was primarily set up to assist Sime Darby.

Another letter also dated June 23, 2008 made the proposal to develop a 150,000ha NCR land. This proposal was forwarded to the specific state authorities.

Prosecutor Kevin Morais then questioned Chew whether Oriental Release had been involved in any development projects on NCR land in Sarawak before, to which Chew answered in the negative. Ahmad Zubair claimed trial on the amended principal charge of CBT involving more than RM100 million, and two alternative charges of cheating.

Besides the charge concerning Vertical Drive, 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 Sdn Bhd 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.

Earlier, Chew had testified that he was a local businessman who acted as a liaison officer even during former CEO Nik Mohamed Yaacob’s time in Sime Darby. Nik Mohamed retired in 2004.

Chew testified that he first became a liaison officer for Sime Darby for the Bakun dam project. He added that he would usually deal with Taib Mahmud’s secretary.

This article first appeared in The Edge Financial Daily, on December 9, 2014.