Mirza trial: Minister cautioned over projects

KUALA LUMPUR: A minister testified in court yesterday that he received a report from Tourism Malaysia director-general Datuk Mirza Mohammad Taiyab Beg cautioning about Pempena's joint-venture restaurant projects overseas.

 

Housing and Local Government Minister Datuk Seri Chor Chee Heung, who was then chairman of the Pempena board,  said he had instructed Mirza to go to Hyderabad to find out what about one of Pempena Sdn Bhd's joint-venture projects, known as Awana Hyderabad. The minister agreed that Pempena's joint-venture partner, under its Awana restaurant banner, was businessman Datuk Low Chin Meng of LCL Interior.

 

Chor, the 12th prosecution witness to testify in the criminal breach of trust trial of Mirza and Pempena's former chief operating officer Mohammad Rosly Md Selamat, said this when he was questioned by Mirza's lawyer, Saseedharan Menon.

 

Saseedharan: It says here in Mirza's report: "On the whole, it could be said that there is no integrity, transparency and business ethics by the joint-venture partners."  He goes on to say in his report  that Pempena should exercise more prudence, better governance and due diligence when undertaking a joint venture of such nature. Is this his report?

 

Chor: That is what is written.

 

Saseedharan said  Mirza, in his report to Chor regarding Awana Hyderabad dated March 8, 2008, had stated that the restaurant project  was overpriced with plenty of renovations done.

 

Chor, however,  said he could not be  sure, but confirmed that Mirza had gone to Hyderabad to check on the situation.

 

Saseedharan had wanted to tender the report by Mirza as a defence exhibit, but  it could not be confirmed if the copy was the same as the original copy received by Chor.

 

Saseedharan also pointed out to Chor that Mirza had stated in his report that "the situation in Awana Hyderabad was not an isolated one and that the same partner was involved in London and Beijing, and to date, their deals and contracts have been done without Pempena's direct knowledge and supervision".

 

Saseedharan: This is what the first accused Mirza said in his report and now he is being charged with this offence. So, we have a situation where the management knows that the joint-venture partner was doing this and that and the matter should have been brought to the board. And it is Pempena executive vice-chairman Akit Sebli's duty to inform the board about this, do you agree?

 

Chor: Yes.

 

Chor also agreed that when he first took over as chairman of  Pempena board, he had cautioned against the  joint-venture projects.

 

Saseedharan: At the board meeting on Feb 22, 2007, you had cautioned the management at the beginning of the meeting where you said you were surprised to note that there were so many ongoing projects and you advised the management to be careful in projects involving joint-ventures. And these projects were mainly with one person, Low Chin Meng?

 

Chor: It was a general caution for all Pempena's joint-venture projects.

 

Hearing before Sessions Court judge Che Mohamad Zulkifly Jusoh will continue on Feb 17.

-NST Online.