Liong Sik 'shock' acquittal another political decision?

KUALA LUMPUR - Former MCA president Ling Liong Sik was a happy man today. The former Transport Minister, one of the longest-serving ministers during the Mahathir administration, was acquitted of having cheated the federal government over the RM4.6 billion Port Klang Free Zone project.

However, the decision by the Kuala Lumpur High Court is unlikely to go down well - not only among critics but with investors and members of the legal fraternity.

"Liong Sik must have very good lawyers or the Attorney-General has very good ones. Or is this another political decision?" MP for Kelana Jaya Wong Chen told Malaysia Chronicle.

"This looks like a straight-forward slam-dunk case. You have a written letter from Liong Sik, which he had no authority to issue. So how did the A-G lose the case? I hope the government will appeal immediately."

In acquitting Liong Sik, Judge Ahmadi Asnawi said the defence had created a reasonable doubt in the prosecution's case. Nine witnesses, including former prime minister Mahathir Mohamad, gave evidence for Liong Sik, who was also the former president of the MCA.

"This is a major let-down. Liong Sik and PKFZ are part of the Mahathir era. There is no doubt that a lot of B bigwigs are involved not just Liong Sik. Even so, Najib should not play politics in the courts and in the business arena. As PM, hee should maintain a tough anti-corruption stance but with a decision like this that practically allows RM4.6 billion of the people's money to vanish into thin air without anyone being responsible, it will send a very awful message to investors and to our own citizens," MP for Bayan Baru Sim Tze Tzin told Malaysia Chronicle.

"We hope the government will continue to seek and punish all the perpetrators including Liong Sik. We find it so strange that Najib can win comfortably in the recent Umno election with this type of performance. Don't Umno members care about corruption?

The 70-year-old Liong Sik was alleged to have deceived the Cabinet by hiding the fact that there was an additional interest rate of 7.5% to the purchase price of RM25 per square foot in the deal, despite knowing that the interest rate was already included in the price.

He was also accused of inducing the Cabinet to approve the land purchase, which caused losses to the government.

The PKFZ project, initially estimated to cost RM1.1 billion, was mooted by Liong Sik in 1997. However due to dubious and enormous cost overruns, the project cost quadrupled to RM4.6 billion by 2007.

According to independent auditor Pricewatercooperhouse, if a government debt was not restructured, the entire project could end up costing the people RM12.5 billion.

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