Eric Chia ACQUITTED!

KUALA LUMPUR (June 26, 2007): The sessions court here today acquitted and discharged Tan Sri Eric Chia Eng Hock, the former managing director of Perwaja Steel Sdn Bhd, without calling for his defence on charges of criminal breach of trust (CBT) involving RM76.4 million.

Judge Akhtar Tahir said the prosecution had failed to adduce sufficient evidence to establish a prima facie case against Chia, reports Bernama today.

The prosecution, led by Senior Deputy Public Prosecutor Datuk Yusof Zainal Abiden, closed its case on May 4 after calling 29 witnesses. On Feb 10, 2004, Chia, 74, pleaded not guilty to the original charge of CBT of the same amount by dishonestly authorising the payment of the amount to the account of Frilsham Enterprise Incorporated with American Express Bank Ltd in Hongkong for technical assistance provided for the Perwaja plant in Gurun, Kedah, when no such payment was due.

Alternatively, six months later, he was charged with dishonestly disposing of the funds by entering into an agreement with NKK Corporationof Japan and authorising the payment of the amount without the approval of the board of directors or tender committee of Perwaja Rolling Mill and Development Sdn Bhd.

He was charged with having committed both offences in his capacity as managing director of Perwaja Rolling Mill and Development Sdn Bhd in its office in Menara UBN on Jalan P. Ramlee here between Nov 4, 1993, and Feb 22, 1994.

On both counts, he was charged under Section 409 of the Penal Code which carries a jail term of between two and 20 years and whipping, and the liability of a fine upon conviction.

Chia, who was represented by lead counsel Datuk Muhammad ShafeeAbdullah, was allowed to sit behind the defence team due to his brittle diabetic condition.

Both DPP Yusof and Muhammad Shafee summed up their arguments verbally on May 31 and June 1, respectively.

Yusof closed the prosecution's case in 34 pages, covering all evidence obtained from witnessess including from Hongkong, Japan, Zurich and Geneva, while Muhammed Shafee's summing-up was contained in a 300-page document.