Monday 13 June 2011

Businessman says gave Khir Toyo discounts out of fear

Ditamas director Shamsuddin Hayroni testified today that he bought a mansion in Shah Alam on the instruction of then Selangor menteri besar Dr Mohd Khir Toyo and then sold it to him at a heavily discounted price out of worries his business would suffer if he did not accede to the demand.

Shamsuddin told the Shah Alam High Court that he bought the mansion situated on Lots 8 and 10 off Jalan Suasa, Shah Alam, for RM6.5 million from property developer Saiful Aznir Shahabudin in 2004.

NONE"The MB asked me (to). I had no choice, so I had to proceed," Shamsuddin (left) said during his examination-in-chief by DPP Abdul Wahab Mohamed.
The company director related how he had a meeting with Khir and Sumadi Ismail, the man who helped Saiful Aznir sell his house, after viewing the mansion.

He told the court how Khir seemed very interested in the property, but asked Sumadi to buy the mansion.

"Sumadi said he cannot as he had other commitments. So Khir asked me to buy it instead," related Shamsuddin.

He said he had bought the house on the understanding that Khir would buy it from him, but later found himself disagreeing over the offer price.

"I did not agree. The price was too low. I was expecting between RM5 million to RM5.5 million.

"However I agreed after consulting my wife, as he (Khir) was the Selangor menteri besar. I was worried that my status as a businessman and my projects in the state may be jeapordised," Shamsuddin added.
At that time, two of Shamsuddin's companies, Proniaga Sdn Bhd and Bidara Lumayan Snd Bhd, were engaged in business with state-owned companies.

Shamsuddin was testifying for the prosecution in the fourth day of Khir's corruption trial.

NONEThe former MB is charged under Section 165 of the Penal Code for allegedly taking bribes while a civil servant.
Defence to seek impeachment
The huge discount he took for the purchase of the mansion is allegedly a bribe in return for lucrative contracts as well as to green light contracts for Shamsuddin's companies.

Shamsuddin was also charged jointly with Khir, as well as with a separate charge of abetment, at the start of the trial but had his charges dropped and is now a key prosecution witness.

The company director was resuming his testimony after he was unable to continue on the second day of trial, forcing a postponement, as the lead prosecutor explained, for health reasons.

After Shamsuddin's examination by the prosecution was completed, the trial was put off till tomorrow as the defence led by M Athimulan said it was not prepared to cross-examine the witness today.

The defence will also submit an application to the court tomorrow morning for the prosecution to hand in documents to it on Shamsuddin and his statement to the Malaysia Anti-Corruption Commission, as it intends to prepare an application for impeachment of the witness.

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