Prosecution's first witness testifies in PKA case

SHAH ALAM: The prosecution's first witness in the trial of former Port Klang Authority (PKA) general manager O. C. Phang, who is facing three counts of misappropriating RM254 million, told the Sessions Court here today that he lodged a police report in August 2009 after accounting firm PricewaterhouseCoopers (PwC) conducted a forensic audit on the RM1.08 billion Port Klang Free Zone (PKFZ) scandal.
The audit was ordered by then transport minister Datuk Seri (now Tan Sri) Ong Tee Keat.
"Two legal firms scrutinised the audit report. Finally, the PKA board instructed me to make a report," former PKA chairman Datuk Lee Hwa Beng said when examined by deputy public prosecutor Robert Pasang Alam, the Malaysian Insider reported.
Lee, who is an accountant, said the report was made because PKFZ's turnkey contractor Kuala Dimensi Sdn Bhd had made a double claim for the construction of a monsoon drain and water supply work.
The prosecution contends that payments for both these infrastructure work had been included in the sales and purchase agreement when PKA bought the land from KDSB, the initial owner of the property.
Lee, who was PKA chairman between 2008 and 2011, said KDSB was obliged to provide the infrastructure before handing over the PKFZ project to PKA as under the agreement.
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 premises in Port Klang, between Oct 1, 2004, and May 9, 2006.
If convicted, she faces a maximum of 20 years' jail and a fine on each charge.
Phang was accompanied to court by her husband.
Trial before judge Selamat Yahya will continue today.