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Published: Wednesday March 6, 2013 MYT 12:00:00 AM
Updated: Thursday April 18, 2013 MYT 1:19:03 AM

Mega deal for untested firm

GEORGE TOWN: One of the major players in the consortium which won the tender for the four big infrastructure projects in Penang is a fairly new company, claims a state Barisan Nasional Youth leader.

Penang Umno Youth chief Dr Shaik Hussein Mydin said Zenith Construction Sdn Bhd was registered with the Companies Commission of Malaysia (SSM) on Aug 22 in 2011, some three months before the tender for the projects opened on Nov 14 in 2011.

“This shows that Zenith Construction Sdn Bhd is a new company with no experience and no track record then,” he claimed.

The projects, costing RM6.3bil, consist of the 6.5km Gurney Drive-Bagan Ajam undersea tunnel, the 4.2km Gurney Drive-Lebuhraya Tun Dr Lim Chong Eu Bypass, the 4.6km Lebuhraya Tun Dr Lim Chong Eu-Bandar Baru Air Itam Bypass and a 12km road connecting Tanjung Bungah and Teluk Bahang.

The consortium which won the tender for the projects is Consortium Zenith BUCG Sdn Bhd — a collaboration of four companies namely Beijing Urban Construction Group, Sri Tinggi Sdn Bhd, Jureteras Sdn Bhd and the Zenith Con­struction Sdn Bhd-China Railway Construction Corporation Ltd partner­­ship.

Dr Shaik Hussein pointed out that the latter partnership held a 70% equity in the consortium while the other three firms held 10% each.

He told a press conference here yesterday that a search made with the SSM revealed that the consortium had only two directors — Zenith Construction director Lee Chee Hoe and another person by the name of Wong Kwai Wah.

Penang Barisan local government bureau chief Teh Leong Meng claimed the undersea project went against the Penang Structure Plan 2020 which was gazetted in 2007.

Zenith Construction chairman Datuk Zarul Ahmad Zulkifli said there was no reason for anyone to doubt the ability of the consortium as each member had strong financial background and the expertise to carry out the projects.

“Furthermore, we have yet to sign the contract as discussions are still needed between the state government and the consortium on the terms of agreement,” he told a press conference in Komtar yesterday.

Representatives from the other firms in the consortium were also present at the press conference called by state Public Works, Utilities and Transport Committee chairman Lim Hock Seng.

Lim announced the appointment of state financial officer Datuk Mokhtar Jait as the negotiation committee chairman who will facilitate the terms and conditions of the basic agreement between the state government and the consortium.

He said all the companies in the consortium were reputable firms dealing with infrastructure construction, adding he believed each of them was qualified to handle a project of this magnitude in Penang.

Tags / Keywords: Community, News, Politics, zenith, rm6 3bil, consortium


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