KUALA LUMPUR, March 4 (Bernama) -- Former Sabah Chief Minister Datuk Harris Salleh took the witness stand at the High Court on Thursday in a trial involving Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) whose president is suing its honorary advisor and seven others over a piece of land in Sabah.
Harris, 79, the first witness of the plaintiff, was quizzed over his role in alienating the land to ACCCIM.
In 2008, ACCCIM president Tan Sri William Cheng Heng Jem and Datuk Lim Kok Cheong, the ACCCIM deputy president, filed the suit against Tan Sri Ngan Chin Wen, its life honorary president Tan Sri Lim Gua Teik, its four council members Teoh Hock Chai, Dr Yeong Cheong Thye, Mew Jin Seng and Datuk Tan Huat Sheng, Unico Holdings Bhd (in which Ngan was a director at that time) and a joint venture company, Unico-Desa Plantations Berhad.
Harris, who was the chief minister from June 6, 1976 until April 1985, told the High Court that then ACCCIM president Tan Sri Wee Boon Ping requested the state government to alienate the agricultural land to be used for the betterment of the Chinese community.
Harris said that according to Wee, ACCCIM planned to cultivate oil palm on the land.
He said in a letter dated Dec 14, 1982, upon of his instructions, ACCCIM was informed on the state government's decision to alienate 17,000 acres of the land.
Harris said as far as the Sabah government was concerned, the land was alienated to ACCCIM and that it was not his place to interfere with ACCCIM's internal affairs.
In their statement of claim, Cheng and Lim said by a memorandum of understanding (MOU) dated July 17, 1981, entered into between ACCCIM and the Sabah state agency, Koperasi Pembangunan Desa (KPD), the parties agreed to set up a joint venture company (Unico-Desa) for the purposes of acquiring and cultivating an agricultural plantation in Sabah.
By a letter dated Aug 16, 1981, Unico-Desa accepted the offer of 17,000-acre land and the land was registered in the name of Unico-Desa.
On Dec 11, 1981, the joint venture company was incorporated under the name of Unico-Desa, with Unico Holdings holding 51 per cent of the share capital and KPD holding the remaining balance of 49 per cent.
They said after ACCCIM accepted the offer, Unico Holdings set up a Share Sub Promotion Committee in June 1984 to promote Unico Holdings' shares and invited members of Chinese business community to subscribe in them and to raise the share capital of Unico Holdings to undertake oil palm cultivation on the land.
However, on Aug 21, 1987, the joint venture agreement between Unico Holdings and KPD was terminated, with Unico Holdings acquiring the entire 49 per cent stake in Unico-Desa owned by KPD.
As a result, Unico-Desa became the fully owned subsidiary of Unico Holdings.
They also said the ACCCIM was at all time, since its alienation in May 1983, the beneficial owner of the land and in consequence, Unico-Desa at all material times holding the land for the benefit of ACCCIM.
They said by a statutory declaration affirmed by Harris, on Aug 5, 2008, he confirmed that the Sabah state government had alienated the land to ACCCIM and not to any other entity or person.
They said that Ngan (the first defendant) had held that the land does not belong in equity to ACCCIM and that Unico-Desa is the beneficial owner, by his solicitor's letter dated April 8, 2008 to ACCCIM.
They said by such declaration, Ngan and the other directors had acted wrongfully, and in breach of trust.
They contended that Ngan and the other directors were accordingly accountable to ACCCIM for their conduct.
They want among others a declaration that the Sabah land was held in trust by Unico-Desa for and on behalf of ACCCIM.
During the cross-examination by counsel Wong, Harris said his conversation with Wee on the land matter was not recorded.
When asked how he knew that the land was no longer belonged to ACCCIM, he said Tan Sri William (first defendant) had informed him that the land and the share of the land belong to the other party.
"I feel very bad... instead of ACCCIM, it (the land) now belongs to someone else," he said, adding that without the information by William, he would have no knowledge of what had happened to the land.
He told the court that after he approved the land's alienation to ACCCIM, some of the office-bearers led by William made a courtesy call to thank the state government.
Harris was also queried over his use of the word "favourable" in relation to the land alienation.
Harris replied that it meant that there was an 80 per cent chance that the matter could be approved.
Wong: Based on the answer, there was a 20 per cent chance that the alienation of the land would not be approved even if you used the word "favourable".
Harris: I disagree, because 80 per cent carries more weight than 20 per cent.
The hearing before Justice Datuk Lim Yim Lan continues on Tuesday.
-- BERNAMA
