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.
Teoh, who previously had served at the Penang Property Assessment and Services office as an appraiser for 13 years before working at Henry Butcher for 29 years until the present, said the purpose of the assessment was for ‘ loan/credit security purposes’ requested by Phang.
He said the report also described the location of the property, which was seen to be strategic, as it is just 4.2km away from the city centre and there were many basic amenities nearby.
“The area of this property is 944 square metres, equivalent to 10,161 square feet. On this land, there is a two- storey house,” he said when asked to read out his statement by Deputy Public Prosecutor ( DPP) Budiman Lutfi Mohamed.
The lawyers representing Lim and Phang did not cross examine Teoh.
Meanwhile, electrical contractor Lim Kin Ban told the court that he had carried out work to fix lights, fans and air conditioners in Phang’s house in 2009.
When asked by DPP Mohd Zain Ibrahim, the 21st prosecution witness said while he was carrying out the work, Phang was sometimes present at the house with another woman, but he did not know her name.
When Mohd Zain suggested that the woman was Lim’s wife Betty Chew Gek Cheng, the witness said “Yes” and when asked to identify Betty in court, the witness said “Yes” However, Kin Ban changed his testimony after being pressed by Chief Minister Lim’s lawyer Gobind Singh Deo, that Betty had never been to the bungalow when the works were carried out.
Gobind: How many times when doing the renovation was Betty present there? Kin Ban: One time Gobind: Remember correctly, you cannot just say it like that.
Kin Ban: There was one time. Gobind: What if I suggested to you that Betty never came to the house when you did the renovation? Kin Ban: I don’t remember
During a re- examination by Mohd Zain on whether he was sure Betty never came when he was doing the renovations, Kin Ban said that he couldn’t remember.
A total of 10 witnesses testified in the morning and four witnesses this afternoon before Judge Datuk Hadhariah Syed Ismail.
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.
The charge under Section 23 of the Malaysian Anti- Corruption Commission ( MACC) Act 2009 provides imprisonment up to 20 years and a fine up to five times the sum or value of the bribe or RM10,000, whichever is higher upon conviction.
Lim was also slapped with a second charge of using his position to obtain for himself a plot of land and a bungalowlocated at No 25, Jalan Pinhorn, George Town on July 28, 2015 from Phang for RM2.8 million, a price which he allegedly knew did not commensurate with the property’s then market value of RM4.27 million.
The charge, under Section 165 of the Penal Code, provides a jail term up to two years, or a fine, or both, upon conviction.
Phang, on the other hand, pleaded not guilty to abetting Lim in obtaining the bungalow at an undervalued cost.
She allegedly committed the offence at the same place and date and charged under Section 109 of the Penal Code, read together with Section 165 of the same law, which provides an imprisonment for up to two years, or a fine, or both, upon conviction. — Bernama