Friday 29 Mar 2024
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SHAH ALAM: The trial of former Port Klang Authority (PKA) general manager O C Phang, who is facing three counts of misappropriating some RM254 million, began yesterday in the Shah Alam Sessions Court, five years after she was charged.

Taking the stand, the prosecution’s first witness, former PKA chairman Datuk Lee Hwa Beng, told trial judge Selamat Yahya that he lodged a police report in August 2009 following a forensic audit conducted by PricewaterhouseCoopers on the RM1.08 billion Port Klang Free Zone (PKFZ) scandal.

“Two legal firms scrutinised the audit report for legal implications. Finally, the PKA board instructed me to make a report,” he said when examined by deputy public prosecutor Robert Pasang Alam.

Lee, who is also an accountant, said the report was lodged because PKFZ turnkey contractor Kuala Dimensi Sdn Bhd had made a double claim for the construction of a monsoon drain and water supply works.

Lee will continue with his testimony today.

The prosecution contends that payments for both these infrastructure jobs had been included in the sales and purchase agreement when PKA bought the land from KDSB, the initial owner of the property.

Lee, who was PKA chairman between 2008 and 2011, said KDSB was obliged to provide the infrastructure before handing over the PKFZ project to PKA under the agreement.

Phang is charged with committing three counts of criminal breach of trust involving RM98.7 million, RM21.6 million and RM134.56 million at the PKA premises in Port Klang, between October 1, 2004, and May 9, 2006.

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

Phang had applied to defer her case in 2010 pending the disposal of the trials of former transport ministers Tun Dr Ling Liong Sik and Tan Sri Chan Kong Choy.

On Oct 25, 2013, Ling, a former MCA president, was acquitted of deceiving the Cabinet by failing to disclose an additional interest rate of 7.5% to 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 the facts of the case.

In acquitting Ling, High Court judge Datuk Ahmadi Asnawi ruled that the former minister could not be held accountable for any mistake, misleading information or inaccuracy in the preparation of the ministry’s documents regarding the land acquisition, although Ling signed the documents.

“If any, the blame should be apportioned wholly and squarely upon the officers of the Transport Ministry who drafted and prepared the documents,” the judge said.

On Jan 13, 2014, Chan was 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. — The Malaysian Insider

 

This article first appeared in The Edge Financial Daily, on March 10, 2015.

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