Hear Liong Sik’s case first, says OC Phang’s lawyers

SHAH ALAM — Former Port Klang Authority (PKA) general manager OC Phang applied for a stay of proceedings today, arguing that former transport minister Tun Dr Ling Liong Sik’s ongoing trial for his role in the Port Klang Free Zone (PKFZ) scandal will affect and influence her case.

Phang is charged with criminal breach of trust involving RM254.85 million in the PKFZ debacle, while Dr Ling is charged with allegedly deceiving the Cabinet about the land acquisition for the PKFZ project in Klang.

In his application notice, her lawyer, Francis Ng Aik Guan, said that because Dr Ling had allegedly misled Cabinet some two years before Phang was alleged to have committed criminal breach of trust, it was important that issues pertaining to the background and scope of Cabinet approval in Dr Ling’s case be decided on before hearing her case.

Dr Ling is alleged to have committed the crime between September 25, 2002 and November 6, 2002.

Ng added that Dr Ling’s right not to incriminate himself will be jeopardised in the likely event that he is called to testify in Phang’s case either by the prosecution or defence.

He also requested copies of all correspondence, minutes of meetings and recorded decisions of the Transport Ministry and Cabinet meetings pertaining to PKFZ be provided as the documents could prove her innocence.

The defence asked that these documents be reclassified so that they can be used in court without contravening the Official Secrets Act 1972.

DPP Dzulkifli Ahmad said he would need two days to submit a written reply.

Judge Asmadi Hussin will decide on the stay application on November 15.

Phang is charged with committing three counts of criminal breach of trust involving RM98,700,000, RM21,600,000 and RM134,550,000 at the PKA, Jalan Pelabuhan Utara, Port Klang, between October 1, 2004, and May 9, 2006.

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

Phang was charged last December along with PKFZ turnkey contractor Kuala Dimensi Sdn Bhd’s (KDSB) chief operating officer Stephen Abok and architect Bernard Tan Seng Swee of BTA Architect, with CBT and cheating amounting to about RM380 million.

Also charged was former KDSB project director Law Jenn Dong, for allegedly making 24 fraudulent claims totalling RM116.85 million.

The PKFZ scandal first surfaced in 2007 when it was reported that the development costs of the integrated cargo distribution hub and industrial park had more than doubled from RM2 billion to RM4.6 billion.

The total bill for the project is expected to swell to as much as RM12.5 billion due to interest costs from deferred payments, if the trans-shipment hub fails to perform.

The free trade zone was set up by PKA in 1999 in a joint venture with the Jebel Ali Free Trade Zone to attract foreign investment and promote the port.

The land had initially belonged to KDSB. PKA subsequently bought the PKFZ land from KDSB in 2002 on a commercial basis, for RM1 billion, or roughly RM25psf, ignoring advice from the government’s chief legal advisor to forcibly purchase the land under the Land Acquisition Act, which would have cast the value of the land at around RM10psf.

KDSB, whose shareholders include senior politicians from Umno, was then awarded the rights to develop the free trade zone without any competitive bidding, and had raised funds through bonds that received the backing of the Transport Ministry, then headed by Tan Sri Chan Kong Choy.

A PricewaterhouseCoopers report on the PKFZ debacle alleged serious conflict-of-interest breaches between officials of the port authority and executives of private companies with close ties to Barisan Nasional.

The report also showed that PKA did not carry out detailed studies before pushing ahead with the project or consult relevant government agencies before making major decisions.