Sahari, 63, under cross-examination by Tun Dr Ling Liong Sik's counsel Wong Kian Kheong, said he started attending post-cabinet meetings from November 2002 until 2003.
He said a letter dated Sept 29, 2000 proposing the purchase of land in Pulau Indah for the construction of a Transhipment Megahub called the Port Klang Free Zone (PKFZ) had stated a proposed price of RM21 per square feet only.
"Using the "Discounted Cash Flow (DCF)" approach in which the target rate is determined at 8.25 per cent, coupon rate at six per cent and 10-year repayment term, the land price at RM25 per square feet over a repayment of 15 years was found agreeable and could be considered for the issuance of bonds even though the land value was only RM21 (per square feet)," he said.
The second witness said the DCF approach was based on the landlord's six terms, which were initial payment of six per cent in the first year, a coupon rate of 6.5 percent, repayment period of 10 to 15 years, interest-free payments for the first and second year, payment plus interest in the third and fourth year and yearly remaining payment including interest for six years, or 11 years and a period balance of 10 to 15 years.
On the purchase based on a proposed coupon rate of 7.5 percent as stated by the Port Klang Authority in the minutes of meeting about the land acquisition covering 1,000 acres for the Port Klang expansion project, Sahari said he was never informed about it.
The minutes of the meeting also stated the proposed RM25 per square feet based on the valuation by the VPSD, payment period of 15 years, 10 per cent initial payment and a moratorium of four years.
Dr Ling, 68, faces an amended principal charge of cheating the Malaysian government by concealing from the Cabinet the additional interest of 7.5 percent a year on the purchase price of a land in Pulau Indah as against the six percent rate set by the VPSD.
He also faces two amended alternative charges of cheating the government by not revealing to the Cabinet the facts related to the additional interest rate, and cheating the Cabinet into believing that the facts related to the purchase of the land were certified and agreed to by the VPSD when he knew there was no such consent.
The offences were allegedly committed at the Prime Minister's office in Putrajaya between Sept 25 and Nov 6, 2002. Dr Ling faces up to seven years' jail or a fine, or both under Section 418 of the Penal Code for the main charge.
The alternative charge under Section 417 of the Penal Code carries a jail term of up to five years, or a fine or both.
The hearing before Justice Datuk Ahmadi Asnawi continues tomorrow.
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