KUALA LUMPUR: A key prosecution witness in the ongoing trial of the Penang undersea tunnel project involving former Penang chief minister Lim Guan Eng said the purported open tender process was “staged” for his company to secure the project, the Sessions Court heard.
Consortium Zenith Construction Sdn Bhd (CZCSB) former director Datuk Zarul Ahmad Mohd Zulkifli said the project was not awarded through an open tender.
He was being re-examined by deputy public prosecutor Mahadi Abdul Jumaat about the nature of the meetings between Chinese construction firm Beijing Urban Construction Group (BUCG) – a special purpose vehicle for the project – and the Penang state government.
“The project’s memorandum of understanding (MOU) did not state that the project would be done through an open tender. That is the reality.
“The MOU did not mention an 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,” he said.
Zarul Ahmad noted that his company had a “head start” since 2011.
“We were also one of the parties involved in the RFP preparation stage, so there was indeed insider information.”
Zarul Ahmad also confirmed that apart from three official meetings with the state government, there were informal meetings with state officials to gather information for the RFP.
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.
Zarul Ahmad also revealed that a RM19mil payment made to businessman G. Gnanaraja was for the sole purpose of stopping an investigation by the Malaysian Anti-Corruption Commission (MACC) and had nothing to do with an ongoing investigation by the Inland Revenue Board (LHDN).
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 that a large amount of cash in a safe he kept was untouched despite the LHDN and MACC raids.
“I received RM79mil from Datuk Ewe Swee Kheng for a land-swap deal for Lot 702 between 2013 and 2016. I cashed out some of the money and kept it in my office safe for emergencies, as well as the general election, as I would give contributions to those I supported. But the officers did not touch it during the raids,” he said.
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, but was found dead after a fall from a condominium on Oct 5, 2021, in Pulau Tikus, 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 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.
