'Bungalows sold below market to Zahid-linked entity as it was in disrepair'

A businessperson told the Kuala Lumpur High Court that he had sold two bungalow units to Yayasan Al-Falah, a foundation linked to Umno president Ahmad Zahid Hamidi, at below market price as they were in a state of disrepair.

Businessperson Lee Kim Yew, who is the Country Heights Holdings Bhd chairperson, said this while being cross-examined by lead defence counsel Ahmad Zaidi Zainal during Zahid's criminal breach of trust and money laundering trial.

Lee said he agreed to sell the bungalows located at Country Heights, Kajang for a total of RM5.9 million in 2017 - around RM150 per square foot.

He estimated the properties to be worth around RM200 per square foot at the time, adding that the properties used to be show houses and were left vacant for some time.

Lee also confirmed that he knew the foundation was linked to Zahid (above), who was at the time the deputy prime minister.

Zaidi also asked if Lee knew the bungalows were intended to be used for religious purposes.

Zaidi: Tan Sri said you know Zahid. Do you know that Yayasan Al-Falah, which purchased the bungalow lots, is linked to Zahid?

Lee: I do.

Zaidi: Did you know the lots were converted for religious purposes such as a religious school?

Lee: I did not know what they were converted into. But I know when they purchased the lots, it was because they were near a surau. The purchased is linked to the surau.

Yayasan Al-Falah's board of trustees chairperson was 58-year-old Mohamad Nasaee Ahmad Tarmizi, who is Zahid's younger stepbrother.

The court previously heard that Yayasan Al-Falah is an extension of Yayasan Akalbudi, which was founded by Zahid.

The funds to purchase the bungalows came from law firm Messrs Lewis & Co, which is also the trustee for Yayasan Akalbudi.

The court previously also heard that political donations for Zahid were channelled to Mssrs Lewis & Co's account in Yayasan Akalbudi's name. 

Lee confirmed to have received a Maybank cheque amounting to RM5.9 million from Mess Lewis & Co on Jan 4, 2017. Lee and his wife Tan Bee Hong owned the bungalows through Bee Garden Holdings.

During the cross-examination, Lee also agreed that Zahid had many philanthropic initiatives.

Lee was the 57th prosecution witness during the 22nd day of the trial.

When re-examined by deputy public prosecutor Ahmad Sazilee Abdul Khairi, Lee concurred that he did not know the buyer's intention when he sold the properties.

Lee added that his decision to sell the properties below market price to Yayasan Al-Falah had nothing to do with its proximity to the surau as highlighted by the prosecution.

The defence had sought to show that Yayasan Akalbudi funds were used genuinely charitable purposes and not for illicit activities.

Zahid is facing 47 charges, comprising 12 charges of criminal breach of trust and 27 charges of money laundering.

For the money laundering charges, Zahid is accused of receiving RM65 million through Messrs Lewis & Co, with a majority of the amount used to place a fixed deposit in the law firm's name.

Aside from that, RM5.9 million from the amount was also allegedly used to purchase the two bungalow units. - Mkini