KUALA LUMPUR: The Cabinet made a retrospective approval for RM4.6bil from RM1.088bil due to the increase in development costs for the purchase of land for Port Klang Free Zone Project (PKFZ), the High Court heard.

Minister in the Prime Minister's Department Datuk Seri Nazri Aziz, who testified at Tun Dr Ling Liong Sik's trial yesterday, said there was no amendment or revocation of the purchase in the 2007 Cabinet retrospective approval.

He also said some ministers had reservations over the project but admitted that he did not have any record of the disagreements. The decision to purchase PKFZ in 2002, he said, was a “collective Cabinet decision”.

Dr Ling, 68, has claimed trial to cheating the Government in relation to the PKFZ project.

The former transport minister also claimed trial to an alternative charge for similar cheating, which carries a lesser penalty.

Dr Ling is alleged to have deceived the Cabinet into giving its consent over the purchase in Pulau Indah according to the agreed terms between the Port Klang Authority and Kuala Dimensi Sdn Bhd, the turnkey contractor for the PKFZ project.

He is also accused of hiding facts and to have cheated when he was aware that the project could cause losses to the Government, which he was bound by a legal contract to protect.

He is accused of committing the offence at the Prime Minister's office in Putrajaya between Sept 25 and Nov 6, 2002.

Earlier, Nazri agreed to a suggestion by Dr Ling's lead counsel Wong Kian Kheong that the Cabinet gave its approval in 2002, although it was informed that the earlier amount of RM1.088bil did not include interests.

Nazri also agreed to all relevant minutes of Cabinet meetings on the question of whether the PKFZ land could be purchased or acquired.

He agreed that the prime minister had the power to bring any matters for discussion during the Cabinet meeting although it was outside its agenda.

To a question, Nazri said he was aware that the Cabinet had made a decision on matters upon getting a motion by a prime minister without any memorandum.

He agreed that the Cabinet had the right to make any decision without a memorandum.

He also agreed to Wong that among the reasons which caused the Cabinet to expedite the decision over that purchase of land was to make Port Klang the best port for the interest of the country, to face competition from two ports in Indonesia and Thailand and a study which showed that the project was viable economically.

Questioned by lead prosecutor Datuk Tun Abd Majid Tun Hamzah, Nazri said he had no doubts over the content of the minutes of meeting on the land for the project.

Meanwhile, former finance minister II Tan Sri Nor Mohamed Yakcop testified that he prepared a memorandum on June 22, 2007 over the purchase of the land.

Replying to Tun Abd Majid, he said he prepared it as the Cabinet had approved RM1.088bil for the purchase of the land, but the actual cost was RM4.6bil.

Therefore, said Nor Mohamed, who is now a Minister in the Prime Minister's Department, the Finance Ministry felt an approval from the Cabinet was required.

He said there were also several matters of support issued by the Transport Ministry.

The trial before Justice Ahmadi Asnawi continues today.

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