KUALA LUMPUR: A key witness in the ongoing corruption trial of Lim Guan Eng revealed that a RM19mil payment to a businessman was intended solely to avoid an investigation by the graft buster, despite the businessman also being monitored by the Inland Revenue Board (LHDN), the Sessions Court heard.
Consortium Zenith Construction Sdn Bhd (CZCSB) former director Datuk Zarul Ahmad Mohd Zulkifli said the payment to G. Gnanaraja, said to be close to then prime minister Datuk Seri Najib Razak, had nothing to do with the ongoing investigation by LHDN.
"The assignment for Gnanaraja was just to close the anti-money laundering investigation by the Malaysian Anti-Corruption Commission (MACC) and had nothing to do with other agencies, including LHDN," he said during the re-examination by Deputy Public Prosecutor Mahadi Abdul Jumaat.
Last Nov 14, Zarul Ahmad testified that LHDN officers raided his home and office in 2017 at the height of public debate over the project.
He also said he was fearful as he kept a large amount of cash in his office.
"I received RM79mil from Datuk Ewe Swee Kheng for a land-swap deal for a plot of state land, known as Lot 702, between 2013 and 2016.
"I cashed out some of the money and kept it in my office safe for emergencies and also the impending general election, as I would give contributions to those I supported.
"The cash had been there, but the enforcement officers did not touch it during the raid.
"They did not search my office, only looked at documents and took them," he said, adding that the safe was "untouched."
Lot 702 was part of a land swap agreement related to the feasibility and detailed design studies for the Penang undersea tunnel project.
Ewe, who was Ewein Bhd founder and executive chairman, was due to be called as the 15th prosecution witness in the trial, but was found dead after a fall from a condominium on Oct 5, 2021, in Pulau Tikus, Penang.
Zarul Ahmad further explained his motivations behind the substantial payment to Gnanaraja.
"Although I knew paying him RM19mil was wrong, I didn't want the investigation to lead to Lim Guan Eng.
"I feared a thorough investigation would expose the monetary transactions," he admitted, highlighting his desire to protect not only Lim but also himself.
"In truth, I needed to safeguard Lim Guan Eng because I felt indebted to him."
Zarul Ahmad also denied that his statements implicating Lim were made under duress from the MACC.
"There were actually no threats from the MACC. I was the last person called after they gathered all the evidence. They presented everything to me, and I had no choice but to tell them what happened," he said.
When asked about the nature of the meetings held between Chinese construction firm, Beijing Urban Construction Group (BUCG), a special purpose vehicle for the project and the Penang state government, Zarul Ahmad reiterated that the project was not awarded through an open tender, saying the processes were "staged".
Zarul Ahmad: The project's memorandum of understanding did not state that the project would be done through an open tender. That is the reality. The MOU did not mention open tender at all; the meetings we attended with the state government showed that although it was an open tender, it was staged for us to secure the project. Since the RFP (request for proposal) was prepared together with us, it gave us a head start. When the RFP was called to include other bidders, they were given a short time to prepare their submission.
Mahadi: It is suggested that during the open tender process, all procedures were conducted correctly and transparently, and you disagreed. Why?
Zarul Ahmad: As I said, we had a head start since 2011, as we already knew the details of the project that would be tendered. We were also one of the parties involved in the RFP preparation stage, so there was indeed insider information. Then, a visit to China conducted by Penang's executive council was only for BUCG and not for other Chinese companies bidding. With this, I maintain that the appointment of Consortium Zenith-BUCG Sdn Bhd (CZBUCG) was staged.
CZBUCG was a joint venture formed by CZCSB and BUCG to undertake the undersea tunnel project in Penang and was awarded the project.
Zarul Ahmad also confirmed that apart from the three official meetings with the state government, there were informal meetings with state officials to gather crucial information for preparing the RFP.
"My officers contacted state officials, sometimes one-on-one, sometimes in groups of two or three. These were all informal meetings to obtain the information necessary for the RFP we were tasked with," he said, adding that most of the input provided in the meetings was reflected in the RFP.
For example, Zarul Ahmad mentioned the inclusion of a paired road directed by an engineer, which was recorded in the minutes, illustrating the advantage BUCG enjoyed.
Additionally, he also mentioned knowledge of a concession toll not documented in the meeting minutes.
"Based on the actions by the state government, including a visit to China to see BUCG, the meetings and the MOU signed, it appeared as though the project would be awarded to BUCG through something akin to direct negotiation," he added.
Zarul Ahmad also confirmed that Lim informed him in early May 2011 about the change of the project's bidding to an open tender.
Despite this, he said BUCG was still invited to attend meetings, which took place both before and after the announcement of the open tender by Lim.
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 in securing 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 here, in March 2011.
Lim, who is 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 on May 27.
