Former transport minister Ling Liong Sik was today charged at the Kajang Sessions Court over his involvement in the multi-billion ringgit Port Klang Free Zone (PKFZ) scandal.
Ling, 67, who is also former MCA president, is by far the most prominent politician to be nabbed in recent years.
He is charged under Section 418 of the Penal Code with misleading the cabinet between Sept 25 and Nov 6, 2002 into agreeing to purchase 999.5 acres of land on Pulau Indah for a project, that is now known as PKFZ, at a price of RM25psf on a deferred payment method for a 15-year period, at a 7.5 interest rate.
The cumulative interest paid would total at RM720 million at the end of the repayment period.
He was also ffered an alternative charge under Section 417 of the Penal Code for the same offence.
According to the charge sheet, the Finance Ministry had already valued the land at RM25psf – inclusive of compounded interest – and this fact was withheld by the accused from cabinet.
Ling pleaded not guilty to both charges and Sessions Court judge Suzana Hussin set bail at RM1 million. Mention has been fixed for Sept 3.
As Ling needed time to post bail, Ling is on personal bond for today, he was allowed time to do so at the sessions court tomorrow.
He was represented by counsel RR Sethu.
On leaving the courtroom, he told journalists that it was his first time to be in Putrajaya’s Palace of Justice, located next to the Kajang Sessions Court.
Asked whether he was confident about fighting the case, he said, “In the Palace of Justice, you must feel very confident.”
Ling appeared in court at 4.45pm accompanied by his wife Ena and two sons. He then proceeded to sit in the dock. Ling, who wore a purple striped shirt and a pair of sandals, was expressionless.
He is the second MCA president to be placed in the dock after Tan Koon Swan.
Earlier today, rumours of a very important personality (VIP) to be charged sent dozens of journalists, including those from foreign wire services, camping at the court complex this morning.
Most of them gathered at the lobby and main entrance of the courthouse. while a couple stationed themselves in and outside the courtroom.
After an eight-hour wait, at about 4pm, attorney-general Abdul Gani Patail and three DPPs, including head of prosecution Tun Abdul Majid Hamzah, arrived in court without speaking to the journalists. The other two were Manoj Kurup and Dzulkifli Ahmad.
More to come?
Last November, the Public Accounts Committee (PAC) had recommended in its report on the PKFZ controversy that former transport minister Chan Kong Choy and former Port Klang Authority (PKA) general manager OC Phang be probed for CBT (criminal breach of trust).
This was over the wrongful issuance of three letters of support by Chan and three letters of undertaking by Phang without Finance Ministry approval.
PAC said that it was informed by the attorney-general that the letters were implicitly a form of guarantee from the government to ensure that there would be allocations for PKA to enable it to meet its obligations under the development agreement.
PKFZ, a commercial and industrial project south of the capital, was conceived as a RM1.82 billion venture constructed over 1,000 acres.
However, costs are now expected to balloon to RM12.5 billion, making the affair one of the country’s biggest financial scandals and a major embarrassment for the government.
Probes into the project’s financial records since then have revealed instances of corruption, cases of conflict of interest as well as breach of trust.
Ling is one of the very rare top politicians in Malaysia to be charged with corruption.
In 2004, former land and cooperative development minister Kasitah Gaddam was charged in the Sessions Court with corrupt practice and cheating, the first cabinet member to be charged with such crimes. He was freed by the court without his defence being called last year.
Before Kasitah, former deputy prime minister Anwar Ibrahim, who is now opposition leader, was the other prominent politician charged with corruption. He was sentenced to a six-year jail term in 1999.
Another top politician who was charged with corruption was the late Harun Idris, the Selangor menteri besar from 1964 to 1976.
He was slapped with a six-year jail sentence but served three years behind bar before being pardoned by the king in 1981 on the advice of then new prime minister Dr Mahathir Mohamad.
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Ling charged with cheating over PKFZ
By Asrul Hadi Abdullah Sani and Lee Wei Lian
PUTRAJAYA, July 29 – Tun Dr Ling Liong Sik was charged with cheating here today over the scandal hit Port Klang Free Zone (PKFZ) project.
The prosecution of Dr Ling comes as a huge shock and is expected to have repercussions for MCA as he is still considered a kingmaker in the party.
Dr Ling (picture) is believed to be the first Tun ever to be prosecuted.
The high powered prosecution team is led by the Attorney General Abdul Ghani Pattail, Deputy Public Prosector (dpp) Tun Majid Tun Hamzah and dpp Manoj Kurup.
Ling will be represented by Datuk R R Sethu.
Dr Ling led MCA from 1986 to 2003. The PKFZ project was mooted during his tenure as Transport Minister and the cost of the project, initially estimated at less than RM2 billion, more than doubled to RM4.6 billion by 2007.
The cost of the project has been further projected to swell to as much as RM12.5 billion due to interest costs from deferred payments if the trans-shipment hub fails to perform.
Though he left the post of MCA president in 2003, Ling is still influential in MCA and is perceived as a king maker and the charges will have repercussions on the party which is struggling to regain Chinese support.
The move to charge Ling however could help deflect criticisms that the Najib Administration lacks the will to go after the “real masterminds” behind the PKFZ project and boost its reform credentials.
The charges concern land evaluations under the penal code with the principle charge under section 418 with the alternative charge being 417.
Ling claimed trial to the charges and when the charges were read out to him Ling said he was “not guilty” to both charges.
The AG has requested bail at RM1 million and the defence had no objections.
Punishment for offences under section 417 carries a jail term of not more than 5 years and not more than 7 years under section 418.
The case has been fixed for mention on September 3 and judge will be Sessions Court judge Suzana Hussin.
According to the penal code, section 418 concerns “Cheating with knowledge that wrongful loss may be thereby caused to a person whose interest the offender is bound to protect” while section 417 concerns “Punishment for cheating.”
Ling entered the court accompanied by five policemen and dressed in a striped blue and white shirt and black slacks.
His wife Toh Puan Ena Ling was spotted in the court gallery.
Ling is out on police bail and will post bail tomorrow as it is too late for him to do so today
When approached by reporters on his way out of the court, Ling said: “When you’re in the Palace of Justice, you must be very confident of justice.”
#1 by k1980 on Friday, 30 July 2010 - 8:56 am
“When you’re in the Palace of Justice, you must be very confident of justice.”
When does Justice start staying in Palaces? How can Justice serve the poor when it is living like kings and queens?
At the end of the day, it will be revealed that one of the female DPP is having an affair with Ling’s son, and the whole case dismissed.
#2 by HJ Angus on Friday, 30 July 2010 - 9:01 am
I agree that just charging Ling is not cricket – this type of SCAM is a team sport and the major players are still bowling.
We need to lift OSA on all related Cabinet minutes and other documents to see how the fraud was engineered.
In the longer term we need to vote out the Bankrupsi Negara regime to regain control of such criminal acts.
http://malaysiawatch4.blogspot.com/2010/07/malaysiakini-and-evolving-minds-of.html
#3 by undertaker888 on Friday, 30 July 2010 - 9:24 am
there is one ex-mca guy who joined pakatan and got his datukship revoked by ‘i am mightier than thou’ type character for doing nothing wrong but for just being in another political party.
but we got this sik man here on greater charges; is the ‘i am mightier than thou’ type character going to revoke his loony TOON-ship?
after this trial, maybe the incentive will be SUPER-TUN title. bigger than the man from kerala.
#4 by Godfather on Friday, 30 July 2010 - 9:45 am
The irony in all these is that Ling did all he could to get his son Ling Jr out of jail and out of bankruptcy for losing billions of ringgit of bank loans taken to acquire some listed companies, and that resulted in giving Mamakthir the upper hand in “negotiations” with MCA.
#5 by artemisios on Friday, 30 July 2010 - 9:59 am
This is a start, though we all know this is just main wayang.
In the past, the govt would probably just keep on delaying & hope the rakyat will forget they got robbed.
At least this time, it’s on all newspapers that LLS got charged.
& I’d like to thank YB Kit for giving the govt such intense pressure, that finally lead to maybe a small piece of truth revealed.
Otherwise the rakyat would just be fed with 100% lies. At least for now we get about 98% lies instead.
Thank You Lim Kit Siang.
#6 by sheriff singh on Friday, 30 July 2010 - 10:42 am
Just look at all the photos on all the front pages of today’s papers.
Minus his ceremonial dress, his formal suit, the man with the confused look and scruffy hair, wearing the rolled-up shirt with prison-like blue stripes, trousers, slippers, looks just like any other ornery everyday 67 year old apek or apiah.
How pathetic!
#7 by SENGLANG on Friday, 30 July 2010 - 11:01 am
Yesterday day should be the day when this top gun released from the jail and not the day he was prosecuted. Anyway am difference system apply in this top guy case and mind you more tax payers moneys are going to wast in this kind of prosecution
cut subsidy and feed KDSB let the poor be come poorer and feed the crocodile buaya darat fater as you can see how fat is the star
Malaysian tax payers are the most ill treated in the world.
Mind you one one hand we are talking about ther was some thing wrong and therefore the top from ag office let go the horse and do the work to prosecute and on the other hand the current transport minister deem fit to ask pka to release the bond to kdsb? it seem all those ministers are not working for the good of the people but for the crooks
#8 by SENGLANG on Friday, 30 July 2010 - 11:04 am
no worry for this crook whiskey is waiting for him in sg buloh
#9 by monsterball on Friday, 30 July 2010 - 11:07 am
hahahahahahaha….Soi Lek is shocked…asking “who else?”
If you look at the big fishes caught are Tan Koon Suan…Eric Chua…and Liong Sek…and not one big fish from UMNO….you can conclude who are the biggest puppets of UMNO B.
Yes Sireee….most corrupted are Malaysian Chinese politicians. UMNO B are life savers.
Liong Sik’s trial fast and swift and found not guilty whn Najib still in power OR…drag on and on after 13th GE…where Ling Sik will shiver in his pants if that happens.
You can guess cintanegara may say..”Arrest you complaints. No arrest also complaint…..bla bla bla”
Say that…I will F him.
#10 by Jong on Friday, 30 July 2010 - 11:10 am
I agree with Sheriff Singh. Yes, he looked tired and confused, must be having sleepless nights.
He’s now all alone, they have left the country and no one’s sharing the blame. Let’s hope he spills the beans and expose the whole bunch of them kleptocrats!
What’s the point with those billions that can’t buy a peaceful night’s sleep and good health?
#11 by k1980 on Friday, 30 July 2010 - 11:20 am
What’s the point with those billions that can’t buy a peaceful night’s sleep and good health?
Stupid fella. Should had joined Bala in London. Then can drink whiskey 24/7 with him and RPK. Also build a RM24 million palace there.
#12 by monsterball on Friday, 30 July 2010 - 11:47 am
He trained his voice…his art of talking…to think he can fool all with his acting and
sweet” speeches.
Buddhist leaders pleaded for donations in a dinner party in honor of him.
There were 600 guests that made donations and were invited.
Ling said..’sup sup suai. Mow mun tai” and all stood up and clapped hands.
Waited for months…..no donations.
One who makes a promise to Buddha or try to use Buddha will get what’s coming.
#13 by frankyapp on Friday, 30 July 2010 - 12:35 pm
Don’t forget TDM does not forget a friend – or foe.///Jeffrey
No this is absolutely wrong. You remember TDM promised Datuk Harris and party Berjaya that he “will swim or sink ” with Berjaya, However when Berjays lost the state’s general election to PBS, TDM abandonship and to add insult to injury he later had a marriage of convenience with PSB. The rest is history and I need not elaborate further.
#14 by yhsiew on Friday, 30 July 2010 - 12:43 pm
The unfolding of a drama play – let us see how well the script is written this time!
#15 by boh-liao on Friday, 30 July 2010 - 12:55 pm
Charging him is not scandal, d scandal is akan datang
Scandal is when when d charge is later dropped against LLS
Excuse, eazi lah, d minister was misinformed by d little Napoleons and he only read out what was presented to him by d little Napoleons
Not his fault 4 misinforming d cabinet
Case closed, back to $$$$ n whiskey n XO brandy time, la la la
Wonder what kind of odds r Ladbrokes, Coral and William Hill giving 2 punters 4 betting against LLS being charged n found guilty?
#16 by boh-liao on Friday, 30 July 2010 - 1:01 pm
Did NR sms LLS like what he did 2 Baginda?
No worry, buddy, semua kau tim sai, just relax n enjoy your XO
#17 by Godfather on Friday, 30 July 2010 - 1:06 pm
All of Kit’s supporters should now gather at the St George pub at Bangsar Shopping Centre (owned by Ling himself) and drink to the health of Ling Liong Sik. We don’t want anything untoward to happen to him, and we want to see the end of the script.
#18 by House Victim on Friday, 30 July 2010 - 3:40 pm
1. If LLS can be charged, it means that the PKFZ is a scandal that should be acted on. So, all the cause of actions should be listed with the persons involved over the period of the scandal. With the CPWH report and the CPA recommendation, should LLS be the only one
responsible and if only the land matter should be accounted? How many Police report had been made on the PKFZ scandal? And, where are they now??
2.The CPWH report revealed that the PKFZ is obviously a collective mis-appriopriation of power and procedures by the Cabinet and PKA with many violations of procedures, mis-represenation/cheatings over the course of the years.
3. If AG is not acting on the whole matter but picking only one and mini one and only at the begining of the scandal, should he be accounted for acting with BIAS, Breach of Duty and trying to conceal the Facts that many should be accounted for many other charges? Should they consider for themself Penal Code 415 under explanation 1? Especially on the two Letters of Guarantee from CKC?
4. When LLS was the Minister of Transport during the offense, he should be charged of 418 and not 417.
5. Does this mean the CPWH report and the CPA recommendation were ignored?
6. How about the investigation of MACC?
NO WONDER THE FOREIGN INVESTORS SHOULD PULL OUT OF MALAYSIA!! AND SO ARE THE RICH AND CAPABLE MALAYSIANS!!
AG is just another Block to the Justice of Malaysia!!
#19 by lopez on Friday, 30 July 2010 - 9:33 pm
If ling is smart he better bochor all others who also rob and cheat the nation and act ultravires when under oath as minister , like this then all also gone some bad in them ,,,so stale mate lah.
oopps , who lose the most…..all malaysians not on the weight balance.
for those who bragged so proudly how m see hair stood up for the ALL chinese malaysian chinese interest , they may begin regretting. and those katak 2 who jointly shout and insult in arms with these dogs can start looking for another host.
where got chinese make lives difficult to fellow chinese one….only in bolihland.
because they donate their beans to their master in return for good treatment and breadcrumbs deals.
until this ling tak bolih tahan anymore so their grab the PKFZ
at least the tow road deals seem better…these days JKR do not need to doing anything and yet still can be called JKR and get pay increase and promotion.
Of course if you are aligned with them, you get employ in PLUS lah…and bonus plus plus lah.
like all privatisation schema but bolih land style .
#20 by waterfrontcoolie on Saturday, 31 July 2010 - 12:24 am
For a total cost of $12 plus Billions[ eventually] our little dot built their final phase of container terminal capable of handling another 12 to 16 million Teus. just now, they are already collecting revenue in excess of s$1 billion or rm$2.5 B when we still give free storage at PKFZ! Malaysia Boleh!!!Of course we have both PTP and westports to challenge the little dot but I am wondering who is cr…………………ying for help now? Maybe the REAL Author of this episode should stand up and explain! what about it TUN?? With our alignment of the fuel price plus toll [ they are equal in cost to the truck operators], I wonder how much LESS FDI we gonna get come 2011!
Unless, the MAJORITY of the Malaysian population wake up, we can only pray very hard.
#21 by PoliticoKat on Sunday, 1 August 2010 - 9:29 pm
So what? Being charged is nothing. There will some acting, some drama, and once show at the theater is over Ling Liong Sik will be sentence to 25 years jail time and a fine RM 10 billion or around that.
Then once the heat has cooled, Ling Liong Sik will appeal. The appeals court will reverse the fine and reduce jail time to that which has already been served. And Ling Liong Sik will walk out a free man, never to be bothered by PKFZ again, as you can only be charged by a crime once.