Value of Phang’s bungalow in 2008 was RM2.5 mln – witness

GEORGE TOWN: A real estate company director told the High Court here yesterday that the fair market value of a bungalow that businesswoman Phang Li Koon wanted to buy in 2008 was RM2.5 million.

Teoh Poh Huat, a director of Henry Butcher Malaysia (Penang) Sdn Bhd, said the price was arrived at after considering all factors and making comparisons with prices of similar properties.

“Forced Sale Value which is the auction value was RM1,850,000, Fire Insurance Value was RM600,000,” he said when reading out a witness statement on the second day of the corruption trial of Penang Chief Minister Lim Guan Eng and Phang in relation to the purchase of a bungalow at below market price.

The 15th prosecution witness said the method of evaluation used was comparison that is by looking at and comparing sale and purchase transactions of properties similar to the bungalow in question.

Referring to the “Report and Valuation of Premises No 25, Jalan Pinhorn, Georgetown (applicant Phang Li Koon)” from Henry Butcher dated Nov 21, v 2008, the witness said it (report) was for Public Bank Berhad based on the bank’s request for a real estate evaluation of that bungalow to know the market price then.

Lim was charged with using his position as a civil servant, namely, Chief Minister of Penang, to gain gratification for himself and his wife, Betty Chew Gek Cheng, by approving an application for conversion of agriculture land to a public housing zone in southwest Penang to a company, Magnificient Emblem Sdn Bhd, in his and his wife’s interest.

He allegedly committed the offence while chairing the Penang State Planning Committee meeting at the operations room, Level 28, Komtar building here, on July 18, 2014.

Lim was also slapped with a second charge of using his position to obtain for himself a plot of land and a bungalow from Phang for RM2.8 million, a price which he allegedly knew did not commensurate with the property’s then market value.