KUALA LUMPUR: An undersea tunnel was favoured over a third bridge and included in the request for proposal (RFP) stage of the Penang undersea tunnel project because it required fewer approvals from the Federal Government, the Sessions Court heard.
Former Consortium Zenith Construction Sdn Bhd (CZCSB) director Datuk Zarul Ahmad Mohd Zulkifli testified that former Penang chief minister Lim Guan Eng shared this information with him during a preliminary discussion about the project.
"When we do a tunnel, we don't need as much approvals from the federal government," he said during re-examination by Deputy Public Prosecutor Datuk Wan Shaharuddin Wan Ladin on Monday (April 14).
When asked, Zarul Ahmad said this was not his opinion but what Lim had told him.
Wan Shaharuddin: So how do you know, was it because Lim Guan Eng told you?
Zarul Ahmad: Yes. If we were to build a bridge, it would require numerous approvals from the federal government. Whereas for a tunnel, there would be less involvement from federal government officials. That's why a tunnel was suggested.
"At that time, the Penang state government was in the Opposition, so we might have faced challenges obtaining approval if we proceeded with a bridge. Therefore, he recommended that we construct a tunnel," he said.
Zarul Ahmad was referred to the minutes of the meeting on May 10, 2011, and read out parts pertaining to supposed processes and expected challenges.
In March, Zarul Ahmad told the court that the Penang government advanced the Penang undersea tunnel project to the RFP stage despite encountering significant challenges outlined in feasibility and detailed design studies.
Zarul Ahmad testified that the studies showed numerous challenges, "particularly concerning unresolved issues related to shipping routes and ports".
He said the challenges were mentioned during a consultancy meeting involving the state government, agencies and his company for the project, Beijing Urban Consortium Group Co. Ltd. (BUCG).
When asked, Zarul Ahmad said he received the suggestion to build a tunnel instead of a bridge from Lim before his company received the letter of intent for the undersea tunnel project from the Penang state government.
He also said that his company was told to produce the RFP document within six months from the signing of the memorandum of understanding.
The RM6.3bil 7.2km undersea tunnel project consists of four major components: three toll-free roads on the island and a tolled tunnel to ease traffic congestion on the island.
When asked, Zarul Ahmad also said he did not know whether the then state government under Lim made any decision to halt the tunnel project.
He also confirmed that he met late Ewein Zenith Sdn Bhd (EZCB) managing director Datuk Ewe Swee Kheng in 2013 to talk about the transfer of ownership of a plot of state land known as Lot 702.
Lot 702 was part of a land swap agreement related to the feasibility and detailed design studies for the Penang undersea tunnel project.
Zarul Ahmad told the court that Ewe was "confident" he would receive the state land.
However, Ewe died on Oct 5, 2021, after falling from his apartment in Penang.
Lim, 64, is facing an amended charge of using his position as then Penang chief minister to solicit RM3.3mil in bribes as an inducement to assist Zarul Ahmad to secure the undersea tunnel project worth RM6.34bil.
Lim allegedly committed the offence at the Penang Chief Minister's Office, Level 28, Komtar, George Town, between January 2011 and August 2017.
In the second amended charge, Lim is accused of soliciting a 10% profit from the company as gratification to secure the project.
The offence was allegedly committed near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City, in March 2011.
Lim, who is also Bagan MP, faces two further charges of causing two plots of land worth RM208.8mil belonging to the Penang government, to be disposed of to two companies linked to the project.
The trial before Judge Azura Alwi continues April 15.
