Businesswoman took RM2.1m loan to purchase Pinhorn Road house in 2008

(MMO) – Businesswoman Phang Li Koon took an RM2.125 million loan to purchase a house in Pinhorn Road in 2008, the Penang High Court heard during Lim Guan Eng and Phang’s graft trial today.

Public Bank Northern Regional Manager Choong Sung Yean confirmed that Phang took the loan on September 5, 2008 to purchase the bungalow unit addressed at number 25 at Pinhorn Road.

“The housing loan was approved with a base lending rate of 6.75 per cent minus 2.2 per cent over a 30 month repayment period,” she said during cross examination by Phang’s counsel, Datuk V.Sithambaram.

She said the monthly repayment for the loan was RM11,872 per month and that the payment encompasses both the principal sum and the interest.

Earlier, Choong read out her witness statement which stated that Phang had taken the loan to purchase the bungalow unit which was previously registered to a company, Ming Holdings (M) Sdn Bhd, before it was transferred to Phang’s name.

Two other Public Bank officers were also called in to confirm that Phang had applied for the loan and it that was approved in 2008.

Both Phang and Lim were charged with graft over Lim’s purchase of the bungalow unit in 2015.

Lim was charged with using his position as a public officer, which is the chief minister of Penang, to obtain gratification for himself and his wife, Betty Chew, by approving an application by Magnificent Emblem to convert agricultural land to residential purpose during a state planning committee meeting on July 18, 2014.

Lim was alleged to have used his position to obtain the gratification by purchasing the house from Phang at RM2.8 million, which was below the property’s market value of RM4.27 million on July 28, 2015.

Phang meanwhile was charged under Section 109 of the Penal Code for abetting Lim on July 28, 2015 in regards to his purchase of the house from her for RM2.8 million which was below the market value or RM4.27 million whereby Lim had allegedly committed an offense under Section 165 of the Penal Code.

In his opening statement today, Deputy Public Prosecutor Masri Mohd Daud told the court that the prosecution will be presenting evidences to prove that Lim had failed to declare his relationship and interest that he was renting Phang’s house during a state planning committee meeting on July 18, 2014.

He said the state planning committee meeting was held to consider an application by Magnificent Emblem to convert agricultural land to residential purpose and that Phang was a director of the company.

“We will present evidences to prove that Phang had bought the house on number 25 at Pinhorn Road in 2008 at RM2.5 million and was paying monthly installment of RM11,872 for it,” he said.

He said evidence will also reveal that Lim and his wife, Chew, was renting the house from 2009 to 2015 with a rental of RM5,000 each month.

“Evidence will reveal that Phang suffered a loss of RM6,872 each month and the total losses during the tenure of the rent between July 2009 and June 2015 totalled RM494,784,” he said.

Masri said he will present evidences to show that Lim had paid stamp duty totalling RM122,100 for the property which was valued at RM4.27 million.

“This is show that Lim knew that the purchase price of RM2.8 million he paid for the house was below the market value,” he said.

Today, a total 11 witnesses testified on the first day of the trial.

Masri said the prosecution will call 14 witnesses to give their testimony tomorrow.

A total 54 witnesses are expected to be called throughout the trial.

The trial for the case will last for this whole week before adjourning until April 9.

The case will then be heard from April 9 to 12, April 23 to 27, May 7 to 10 and May 21 to 25 this year.

Lim is represented by a team of lawyers led by Gobind Singh Deo while Justice Datuk Hadhariah Syed Ismail presided over the case.