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 heard.
Malaysian Anti-Corruption Commission 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).
“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 yesterday.
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.
Earlier, responding to Ramkarpal’s questioning, Zulhilmi agreed that CZBUCG’s proposal reduced the land requirement from 63.53ha (157 acres) to 44.54 ha (110 acres), representing a saving of 19.02ha (47 acres) valued at RM235mil.
When Ramkarpal suggested that the other four bidders had not offered a proposal with a similar land saving, Zulhilmi agreed.
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.
Ramkarpal then referred Zulhilmi to a draft memorandum of understanding (MOU) between the state government and CZBUCG.
Zulhilmi agreed that Guan Eng had instructed the state legal adviser to ensure the MOU complied with legal requirements and contained no guarantee that CZBUCG would be awarded the project.
However, he disagreed that this showed Guan Eng intended to ensure an open tender without guaranteeing CZBUCG the project.
Deputy public prosecutor Datuk Wan Shaharuddin Wan Ladin later told the court that the prosecution would call Penang Island City Council (MBPP) mayor Rajendran Anthony to testify on Sept 28, after Zulhilmi completed his testimony.
Rajendran was MBPP’s engineering department director when the undersea tunnel project was proposed in 2011 and had taken part in early discussions with CZBUCG on preparing the RFP.
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 resumes on Sept 28.
