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.”