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SHAH ALAM: Former Port Klang Authority (PKA) general manager OC Phang was not implicated in any crime when a police report was made in 2009 over irregularities in the Port Klang Free Zone (PKFZ) project, the Sessions Court heard yesterday.

Former PKA chairman Datuk Lee Hwa Beng testified that Phang’s name was never mentioned in the police report which he made in August 2009.

“I did not mention her name as a suspect in the report,” he said during cross-examination by lawyer Francis Ng Aik Guan, who is appearing for Phang.

Lee was testifying in the trial of Phang, who is charged with committing three counts of criminal breach of trust (CBT) involving RM254 million at the PKA premises in Port Klang, between Oct 1, 2004, and May 9, 2006.

If convicted, she faces a maximum of 20 years’ jail and a fine on each charge.

However, Lee said a report was made against PKFZ turnkey developer Kuala Dimensi Sdn Bhd (KDSB) and the development’s appointed consultant BTA Architect.

Lee’s report was the result of a forensic audit conducted by Price- waterhouse on the controversial RM1.8 billion PKFZ scandal.

On Monday, he told the court that KDSB, as the turnkey contractor, had made a double claim for the construction of a monsoon drain and water supply work.

The prosecution contended that payments for both pieces of infrastructure work had been included in the sale and purchase agreement when PKA bought the land from KDSB, the initial owner of the property.

Others charged over the PKFZ fiasco with CBT and cheating amounting to about RM380 million were KDSB chief operating officer Stephen Abok and architect Bernard Tan Seng Swee of BTA Architect.

Also charged was former KDSB project director Law Jenn Dong, for allegedly making 24 fraudulent claims totalling RM116.85 million. Their cases are being heard in other sessions courts.

On Oct 25, 2013, former transport minister Tun Dr Ling Liong Sik was acquitted of deceiving the Cabinet by failing to disclose an additional interest rate of 7.5% on the purchase price of RM25 per sq ft in the PKFZ deal, despite knowing that the interest rate was already included in the price.

The Attorney-General’s Chambers decided not to appeal against the acquittal as the judge’s finding was made on facts.

On Jan 13, 2014, Ling’s successor Tan Sri Chan Kong Choy was also acquitted of three counts of cheating former prime minister Tun Abdullah Ahmad Badawi in relation to the PKFZ project after the prosecution considered a representation by lawyers of the accused.

Chan was charged on Feb 28, 2011 with cheating Abdullah over the RM1.9 billion trans-shipment project between 2004 and 2006.

Hearing before Sessions Judge Selamat Yahya continues. — The Malaysian Insider


This article first appeared in The Edge Financial Daily, on March 12, 2015.

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