SHAH ALAM – The high court was today told that former deputy prime minister Datuk Seri Ahmad Zahid Hamidi extended Ultra Kirana Sdn Bhd’s (UKSB) contract for the foreign visa system (VLN) project even though the existing contract had three years left to it.
Former Home Ministry immigration affairs division deputy secretary Siti Jalilah Abd Manap said the approval issued by Zahid, 68, who was also the then home minister, for the extension of the contract was too early and not according to government protocol.
“There was no need, the contract had not yet expired,” said the third prosecution witness when asked by deputy public prosecutor Wan Shaharuddin Wan Ladin about the need to extend the contract immediately, on the third day of Zahid’s trial, in which the Umno president faces 40 corruption charges relating to VLN.
Siti Jalilah said UKSB requested approval to extend the implementation of the VLN and e-Visa system for six years from October 31, 2019 to the end of 2025, three years before the previous contract ended on October 31, 2019.
Based on Clause 2.2.1 of the initial VLN system agreement, the company could ask for an extension no fewer than six months before the end of the contract.
“UKSB’s letter dated February 8, 2017 was included in the minutes by Zahid. It reads: ‘Dato’ Sri KSU, as the Home Ministry was satisfied with the company’s service, please extend the implementation of the VLN & e-VISA contract for six years till 2025’,” said Siti Jalilah, reading from her witness statement.
“Zahid, on March 1, 2017, agreed to extend the VLN contract for six years, but the VLN ceiling rate for charges and contract terms for extension purposes needed to be renegotiated, taking into consideration profit-sharing with the government based on the collection of VLN charges.”
After obtaining a decision on March 1, 2017, she said, supplementary minutes titled “VLN Contract Extension Application” were prepared to forward the recommendations, including the contract period and VLN work scope for six years from 2019 till 2025, to Zahid, to forward to the Public-Private Partnership Unit (Ukas) and Prime Minister’s Department to consider getting cabinet approval according to existing financial protocols.
“Then, supplementary minutes dated June 15, 2017 and the UKSB letter were minuted by Zahid as follows: ‘Dato’ Sri KSU (secretary-general), Please extend VLN/e-Visa contract till 2022 & no need to forward to Ukas & Cabinet. Please expedite’.”
Asked by Wan Shaharudin if all the letters breached protocol, the witness answered: “Yes, because instructions and protocols for contracts need to be forwarded to Ukas for approval from the cabinet (during cabinet meetings).”
Wan Shaharuddin: Why the need to bring it to Ukas?
Siti Jalilah: Because it involves the use of public-source financing, and the project received more than RM25 million.
She also told the court that Zahid approved an application to extend the implementation period of the contract for a one-stop centre for visa services in China.
However, the contract was extended for only three years, from 2018 to 2021, she said.
“The supplementary minutes were signed by Zahid on July 24, 2017 under the home minister’s area of decision by writing ‘Approved extension till 2021 without being brought to Ukas or MJM (cabinet meeting) as agreed upon in previous VLN. This agreement is effective from May 15, 2018 till May 14, 2021, for a period of three years’.”
Zahid faces 33 counts of receiving bribes amounting to S$13.56 million (RM42.37 million) from UKSB as an inducement for himself in his capacity as a civil servant, namely the then home minister, to extend the contract of the company as operator of the one-stop service centre in China and the VLN system, as well as to maintain the contract to supply VLN paraphernalia to the same company by the Home Ministry.
He allegedly committed the offences at Seri Satria in Precinct 16, Putrajaya, and Country Heights, Kajang, between October 2014 and March 2018.
The charges, framed under Section 16(a)(B) of the Malaysian Anti-Corruption Commission Act 2009, punishable under Section 24(1) of the same act, provides for a maximum 20 years’ imprisonment and a fine of not less than five times the value of the gratification, or RM10,000, whichever is higher, upon conviction.
On seven other charges, he is accused, in his capacity as the then home minister, with accepting S$1.15 million, RM3 million, €15,000 (RM76,145) and US$15,000 (RM62,137) without consideration from the same company that he knew had connections with his official functions.
He was charged with committing the offences at a house in Country Heights between June 2015 and October 2017.
The charges are under Section 165 of the Penal Code, which carries a maximum jail term of two years, or a fine, or both, upon conviction.
The hearing before judge Datuk Mohd Yazid Mustafa continues on June 1. – Bernama, May 27, 2021
