FORMER MINISTER CHARGED WITH CHEATING M`SIAN GOVT

PUTRAJAYA, July 30 (Bernama) -- A former transport minister, Dr Ling Liong Sik,
was charged in the Sessions Court here Thursday with cheating the Malaysian
government with regard to the Port Klang Free Trade Zone (PKFZ) involving land
acquisition amounting to RM1.08 billion (US$338,187) in Pulau Indah near here
eight years ago.

Dr Ling, 67, who is also a former MCA president, pleaded not guilty to a
principal charge and an alternative charge under Section 418 and Section 417 of
the Penal Code. MCA (Malaysian Chinese Association) is a component party of the
ruling coalition.

Dr Ling is alleged to have deceived the Malaysian government between Sept 25 and
Nov 6, 2002 by deceiving the Cabinet on Level 4, Prime Minister's Office,
Bangunan Perdana Putra in the Federal Territory of Putrajaya.

He appeared calm when the charge, which was translated into English, was read to
him.

Judge Suzana Hussin granted bail of RM1 million with one surety. The court also
fixed 8.30am on Sept 3 for mention of the case.

Dr Ling, who was wearing a blue striped shirt, was released after posting bail.

According to the principal charge, he is alleged to have deceived the Cabinet
into agreeing on the land purchase according to the terms agreed to between
Kuala Dimensi Sdn Bhd and the Port Klang Authority.

The terms in the agreement included:
a) the size of the land being 999.5 acres or 43,538,200 sq ft;
b) the purchase price for the land being RM25 per sq ft amounting to a total
of RM1,088,456,000;
c) the repayment period being based on a "deferred payment" of 15 years with
an interest rate of 7.5 per cent per annum (total RM720,014,600). (US$1=RM3.19)

Dr Ling is accused of deceiving the Cabinet into giving its consent to the land
purchase according to the terms by dishonestly hiding the fact that the
valuation by the Valuation and Property Service Department, Ministry of Finance
on the land was RM25 per sq ft for a repayment period of 15 years, including
coupon/interest that could be charged for the repayment period.

As such, he had purposely induced the Cabinet to give its consent to the
purchase, whereas the Cabinet would not have given its consent if the fact had
been told to the Cabinet.

According to the charge, the fraud was committed with the knowledge that he (Dr
Ling) could cause a wrongful loss to the Malaysian government, where he had an
interest in the transaction pertaining to the fraud and he was bound under the
law to protect it.

On the principal charge under Section 418 of the Penal Code, Dr Ling faces a
jail term of up to seven years, and a fine, or both upon conviction.

On the alternative charge, Dr Ling is accused of cheating the cabinet by
dishonestly hiding similar facts at the same place and time, under Section 417
of the Penal Code which carries a jail term of up to five years, or a fine, or
both upon conviction.

When asked by the intrepreter whether he understood the charge and whether he
pleaded guilty or otherwise, Dr Ling replied that he understood the charge and
pleaded "not guilty".

Attorney-General Abdul Gani Patail, who was leading the prosecution team,
suggested that the court set bail at RM1 million.

He said the charge against Dr Ling was a bailable offence and there was no need
for the former minister to surrender his travel document.

Defence counsel R.R.Sethu had no objection on the quantum of bail.

He applied to the court for a month mention date as he said Dr Ling was in
public service for a while.
-- BERNAMA