Why Lim Guan Eng’s case was dropped

KUALA LUMPUR (September 6): In the wake of the dropped charges against the former Penang chief minister Lim Guan Eng and businesswoman Phang Li Koon, questions as to the events that lead to the decision have arisen. 

The High Court not only released the accused, but acquitted them of all charges. The Attorney-General’s Chambers’ withdrawal of the case has drawn flak from many quarters. 

The NST, citing a source, reports that the basis of the defence’s representation can be found in Section 165 of the Penal Code. There was difficulty in proving that the bungalow deal was carried out ‘for a consideration which Lim Guan Eng knew to be inadequate’. 

There was no evidence to suggest that Lim knew that the property was below market value.

The NST quoted their source as explaining: “One must read the provisions properly... One of the ingredients is not about the price, but whether the holder of public office (Lim) knew that the consideration (price) is inadequate.

“That’s the problem when people don’t read the law and just comment... even making comparisons to the case of former Selangor menteri besar (Dr Mohamad) Khir Toyo, who was convicted in 2010 for knowingly acquiring a RM6.5 million mansion for RM3.5 million, while in office.

“How do you prove that thought process, that rationale, or thinking? In this case, this can be established only through the seller, and that is Phang.

“In Khir Toyo’s case, the seller had established that the mansion was to be sold for about RM7 million, but he (Khir) eventually acquired it for only RM3.5 million... “In this case (Lim’s), the seller asked for RM2.8 million and that was all there was to it. And she made RM300,000 from the sale,” he said.

The source added that this was supported by a bank officer, who said Lim’s wife, Betty Chew Gek Cheng, had proceeded to seek a loan for the bungalow. The timeline tallies with when Lim wanted to purchase the property, later said to be valued at RM4.27 million.

“Take note that the valuation was done subsequently for the purpose of investigations later,” the source said to the publication.