MACC focussing on Penang tunnel project studies, sources say

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PETALING JAYA: The Malaysian Anti-Corruption Commission's (MACC) swoop on companies involved in the controversial Penang undersea tunnel project is focussed on the studies for the project, sources revealed.

Investigators are believed to be looking into the RM305mil feasibility and detailed design studies that have yet to be completed, even though a payment of RM220mil was made to a special purpose vehicle (SPV) company.

The total RM305mil cost is considered to be 400% above the guidelines set by the Board of Engineers.

On Tuesday (Jan 9), the MACC raided the offices of four state government agencies – the Penang Public Works Department, Penang State Secretary, Penang Office of Lands and Mines and Penang Valuation and Property Services Department – and three property development and construction companies – Ewein Zenith Sdn Bhd, 555 Capital Sdn Bhd and Consortium Zenith Construction Sdn Bhd’s Penang office.

Ewein Zenith is a joint-venture vehicle of Ewein Land Sdn Bhd and Consortium Zenith BUCG Sdn Bhd.

The latter is a Malaysia-China joint venture that was awarded the RM6.3bil mega project to build the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in Seberang Prai, a 10.53km North Coastal Paired Road (NCPR) from Tanjung Bungah to Teluk Bahang, the 5.7km Air Itam–Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive–Tun Dr Lim Chong Eu Expressway bypass.

After being awarded the project by the Penang state government, Consortium Zenith said that the studies would be completed in April 2014.

In early 2016, Penang Chief Minister Lim Guan Eng had promised to deliver the completed studies to the Works Minister in order to get approval for that project.

But then Lim later said that the studies would only be ready by the end of 2016.

To date, the Works Minister has yet to receive the studies.

In Tuesday's raid, graft busters arrested a Datuk, holding a high post in a company involved in the tunnel project, to help investigations into corruption claims. They also questioned several officers in charge of the respective agencies and companies.