KUALA LUMPUR: The prosecution started the trial of former Federal Land Development Authority (Felda) chairman Tan Sri Mohd Isa Abdul Samad today by painting him as a director who committed criminal breach of trust over the sale of a hotel and received graft totalling RM3 million in nine payments.
In his opening statement, deputy public prosecutor Afzainizam Abdul Aziz said Isa had, in his capacity as the director of Felda Investment Corporation Sdn Bhd (FICSB), played an active role in the purchase of the Merdeka Palace Hotel & Suites in Kuching, Sarawak, from developer Gegasan Abadi Properties Sdn Bhd for RM160 million.
He said this would be proved through evidence that the FICSB board of directors initially decided not to proceed with the plan to purchase the hotel at RM137,640,965.89 during a board meeting on Feb 26, 2014, as it was not feasible and would not profit the company.
“Isa had in 2013 instructed FICSB chief executive officer (CEO) Mohd Zaid Abdul Jalil to study the proposal to purchase the hotel from Gegasan Abadi Properties Sdn Bhd.
“The prosecution will show that Mohd Zaid had tabled paper work on the proposal to purchase the hotel at RM137,640,965.89, but Isa, as the director of the board, decided not to proceed with the purchase,” he said.
Afzainizam said two weeks after the board’s decision, Isa instructed Mohd Zaid to table the proposal again.
He said during the period, the accused had received a proposal for the sale of the hotel at RM165 million but later a RM5 million discount was offered.
Afzainizam said the prosecution would also show that the accused had received RM3 million from Gegasan Abadi director Ikhwan Zaidel through his former special officer, Datuk Muhammad Zahid Md Arip, in nine instalments.
He said the prosecution would also establish that the accused’s action had contravened a mandate by the Felda board of directors.
He said the board on June 25, 2013, gave a mandate to the FICSB board to enter into an investment worth below RM100 million.
“The prosecution will prove that the hotel purchase sale and agreement dated June 27, 2014, and payment made by FICSB was against the mandate given by Felda.
“To prove the case against the accused, the prosecution will rely on direct, circumstantial and documentary evidences to show that the accused committed the offences,” he said, closing his speech.
The prosecution then continued with the trial by calling its witnesses — Companies Commission of Malaysia (CCM) assistant registrar Muhamad Akmaludin Abdullah and former Felda legal and secretarial division head Siti Salwani Mohamed Salleh.
Trial continues before High Court judge Mohd Nazlan Mohd Ghazali.
On Dec 14, last year, Isa pleaded not guilty to one count of criminal breach of trust (CBT) and nine counts of receiving graft involving more than RM3 million.
For the first charge, the former Umno vice-president allegedly committed CBT by approving the purchase of Merdeka Palace & Suites Hotel in Kuching, Sarawak, without the approval from the Felda board of directors on April 29, 2014.
For the second to 10th charges, Isa was charged with receiving grafts of RM100,000; RM140,000; RM300,000; RM250,000; RM500,000; RM500,000; RM300,000; 500,000; and RM500,000 (total RM3,090,000) from Gegasan Abadi Properties Sdn Bhd director Ikhwan Zaidel between July 2014 and December 2015.
He allegedly committed the offences at the 49th floor of Menara Felda, Platinum Park, No. 11, Persiaran KLCC.