KUALA LUMPUR: Former Penang chief minister Lim Guan Eng initially promised businessman Datuk Zarul Ahmad Mohd Zulkifli that his company would be awarded the state's undersea tunnel and major roads project through direct negotiation, the Sessions Court here heard.
Malaysian Anti-Corruption Commission (MACC) investigating officer Zulhilmi Ramli said the project was subsequently changed to an open tender.
However, he alleged that Guan Eng still promised Zarul Ahmad that state government officers would assist his company.
He said his investigation found that this assistance could be seen through three meetings involving Zarul Ahmad's company, Consortium Zenith Beijing Urban Construction Group (CZBUCG), and the state government to discuss preparation of the request for proposal (RFP).
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"The project initially was promised through direct negotiation. Then, it was changed to an open tender.
"The accused also promised Zarul that the project would eventually be assisted by state government officers to help his company," Zulhilmi said while being cross-examined by defence counsel Ramkarpal Singh on Thursday (Sept 10).
He said the actions allegedly taken by Guan Eng could also be seen from the evidence of former Penang executive councillor Lim Hock Seng, who had helped Zarul Ahmad arrange subsequent meetings with the state government.
Zulhilmi said three meetings on preparation of the RFP involved only CZBUCG and did not involve the other four bidders.
"This gave an advantage to Zarul's company itself.
"Only CZBUCG got the advantage to meet and discuss the RFP with the state government," he said.
Zulhilmi was testifying as the 38th prosecution witness in Guan Eng's corruption trial over the RM6.3bil Penang undersea tunnel and three major roads project.
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Earlier, Ramkarpal put it to Zulhilmi that the RFP process took about a year to complete, with various state government departments and agencies involved.
Zulhilmi agreed that he had recorded statements from officials from the state treasury, state financial office, State Economic Planning Unit (Upen), the then Penang Municipal Council and Seberang Perai Municipal Council.
He also agreed that his investigation found the RFP process to be complicated and time-consuming.
Ramkarpal then took Zulhilmi through five criteria used to evaluate the bidders, including CZBUCG's technical experience, financial capability, lower-cost proposal, 30-year toll concession and lower land requirement.
Zulhilmi agreed that CZBUCG's proposal reduced the land requirement from 63.53ha (157 acres) to 44.54 (110 acres), representing a saving of 19.02ha (47 acres) valued at RM235mil.
He also agreed that CZBUCG scored the highest mark of 93% among the five companies involved in the RFP, while ECK Construction scored the lowest at 4%.
When Ramkarpal put it to him that the other four bidders had not offered a proposal with a similar land saving, Zulhilmi agreed.
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He also agreed that members of the technical committee had carried out their duties according to the prescribed criteria, that the selection of CZBUCG was conducted in an orderly manner, and that a bidder which failed to meet the criteria would not be selected.
Ramkarpal: So I put it to you that the selection of CZBUCG was based on merit by the committee?
Zulhilmi: Correct.
Ramkarpal: And no other company was able to offer the savings to the Penang government that CZBUCG offered?
Zulhilmi: Correct.
The cross-examination then turned to Hock Seng's evidence that Guan Eng had informed him that the private company interested in the project was CZBUCG.
Zulhilmi agreed that Hock Seng had given such evidence, but was unsure whether he had testified that other state officials, including the then state legal adviser, also knew the company's identity.
Ramkarpal then referred Zulhilmi to evidence concerning a draft memorandum of understanding (MOU) between the state government and CZBUCG.
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Zulhilmi agreed that Guan Eng had instructed the state legal adviser to scrutinise the draft MOU to ensure it complied with legal requirements and did not impose a financial burden on the state government.
He also agreed that Guan Eng had asked that the MOU contain no guarantee that CZBUCG would be awarded the project.
However, Zulhilmi disagreed with Ramkarpal's suggestion that this showed Guan Eng's intention was to ensure that an open tender was conducted without guaranteeing CZBUCG the project.
Ramkarpal suggested that Zulhilmi's investigation had failed to take into account Hock Seng's evidence in court, to which Zulhilmi disagreed.
Guan Eng, 65, is charged with using his position to obtain RM3.3mil in gratification linked to the project, allegedly committed at the Penang Chief Minister’s Office in Komtar between January 2011 and August 2017.
He also faces a second charge of using his position to obtain a 10% profit from the project as gratification, allegedly committed near The Gardens Hotel in Mid Valley City in March 2011, as well as two charges involving the disposal of Penang government land valued at RM208.8mil to companies linked to the project.
The trial before judge Azura Alwi will resume on Sept 28.
