Zahid extended UKSB visa contract three years ahead of contract end, court told

SHAH ALAM: The High Court was told today that former deputy prime minister Datuk Seri Dr Ahmad Zahid Hamidi had extended Ultra Kirana Sdn Bhd's (UKSB) contract for the Foreign Visa System (VLN) project even though the existing contract still had three years left to go.

Former Home Ministry Immigration Affairs Division deputy secretary Siti Jalilah Abd Manap said the approval issued by Ahmad Zahid, 68, who was also Home Minister then, for the extension of the contract was too early and not according to government protocol.

"There was no need, the contract has not expired yet," the third prosecution witness said when asked by deputy public prosecutor Wan Shaharuddin Wan Ladin about the need to extend the contract immediately on the third day of the trial of Ahmad Zahid, who is facing 40 corruption charges relating to the VLN.

She said UKSB requested approval to extend the implementation of the VLN and e-VISA system for six years from Oct 31, 2019, to the end of 2025, three years before the previous contract ended on Oct 31, 2019, while based on Clause 2.2.1 of the initial VLN system agreement, UKSB could ask for an extension no less than six months before the end of the contract.

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"Ahmad Zahid, on March 1, 2017, agreed to extend the VLN contract for six years, but the VLN's ceiling rate for VLN 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," she said when reading her witness statement.

Siti Jalilah added that after obtaining a decision on March 1, 2017, supplementary minutes entitled 'VLN Contract Extension Application' were prepared to forward the recommendation to Ahmad Zahid, including the contract period and VLN work scope for six years starting 2019 till 2025, to the Public-Private Partnership Unit (UKAS) and the Prime Minister's Department to consider getting the Cabinet approval according to existing financial protocols.

When 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 receives more than RM25 million.

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Siti Jalilah also told the court that Ahmad Zahid had approved the application to extend the implementation period of the contract for the One-Stop Centre for Visa Facilitation Services in China.

However, the witness said the contract was extended for only three years beginning 2018 till 2021.

"The supplementary minutes were signed by Ahmad Zahid on July 24, 2017, under the Home Minister's decision area 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 the period of three years"," she said.

Ahmad Zahid, 68, is facing 33 charges of receiving bribes worth SG$13.56 million from UKSB as an inducement for himself, as a public official, a Home Minister, to extend the company's contract as the operator of the One-Stop Centre (OSC) service in China and the VLN system as well as maintaining the agreement contract to supply the integrated VLN system by the same company to the Home Ministry.

He is charged with committing the offences at Seri Satria, Presint 16, Putrajaya and at Country Heights, Kajang between October 2014 and March 2018 under Section 16 (a)(B) of the Malaysian Anti-Corruption Commission Act 2009 and is punishable under Section 24(1) of the same act, which stipulates a maximum jail term of 20 years and a fine of five times the bribe amount, or RM10,000 whichever is higher, if found guilty.

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For the other seven counts, Ahmad Zahid is charged as Home Minister for accepting SG$1,150,000, RM3,000,000, EUR15,000 (RM75,663) and US$15,000 (RM62,115) in cash from the same company which he knew had a connection with his function as then home minister.

He is charged with committing the offence at Country Heights between June 2015 and October 2017 under Section 165 of the Penal Code which warrants a maximum jail sentence of two years or fine or both if convicted.

The hearing in front of Judge Datuk Mohd Yazid Mustafa continues on June 1.

-- BERNAMA