BN: Was mega deal finalised in Taiwan?

Chief Minister Lim Guan Eng also asked to explain why the RM6.3 billion infrastructure project was awarded to a company headed by an ex-convict

GEORGE TOWN: The state BN youth has alleged that the state government’s ambitious RM6.3 billion mega infrastructure project was finalised in Taiwan, not in Penang, and wants Chief Minister Lim Guan Eng to clarify.

The movement’s information chief, H’ng Khoon Leng, also questioned how could the Pakatan Rakyat government entrust a mega project to a RM2 company headed by an ex-convict of a white collar crime?

He said he had received information from reliable sources that Lim and representatives from Chinese companies China Railway Construction Corporation Ltd and Beijing Urban Construction Group all held various private meetings to finalise the deal in Taiwan.

“This is a Penang project but we heard all dealings were finalised in Taiwan. We urge the chief minister to clarify this,” said H’ng, also the state Gerakan youth vice chairman, at press conference at state BN office here today.

Also present were Penang’s MIC youth chief J Dhinagaran and, Gerakan youth vice chairmen, Tan Kah Leong and Ng Say Kheng.

H’ng also alleged that the chairman of Konsortium Zenith BUCG Sdn Bhd, which was awarded the project, was an ex-felon Zarul Ahmad Mohamad Zulkifli.

According to records, he said Zarul, a former senior executive of Rakyat Merchant Bankers Bhd (RMB), was convicted with two other bank executives in a loan scandal in 1993.

Zarul and two others were charged in 1994 by Bank Negara under the Banking and Financial Institutions (Bafia) Act 1989 for exceeding their limits and approving RM126,876,705 in loans.

Zarul and another pleaded guilty to giving RM10,554,840 facility to a RMB client on Nov 23, 1993. Zarul also pleaded guilty to transferring RM67.5 million to RMB clients on Nov 24.

Zarul, the former head of RMB public affairs was sentenced to a day’s jail and fined RM10,000 on the first charge and a further RM50,000 or three month’s jail on second.

Open tender

H’ng said according to the facts of the prosecution case, the bank faced problems due to the irresponsible attitude of its senior officers.

“Awarding a mega project to a company under an ex-convict of commercial crime had raised serious concerns among the people of Penang.

“Can the state government guarantee that the project will be carried out smoothly without any problems?” asked H’ng.

The mega project includes 4.6km bypass linking Air Itam and Lim Chong Eu Expressway, 6.5km tunnel linking Gurney Drive and Bagan Ajam, 12km Tanjung Bunga-Teluk Bahang road and 4.2km bypass road linking Lim Chong Eu Expressway and Gurney Drive.

The project had come under fire from social activists, environmentalists, consumer rights activists and public transport advocates.

Lim claimed that the RM2 Consortium Zenith BUCG was awarded the contract in an open tender based on his government’s CAT (Competency, Accountability and Transparency) principles.

But, according to critics, the closing date for submission of tender proposals for the major road and tunnel projects was on June 2012.

But, they alleged that a check with the Companies Commission revealed that the consortium was set up only on July 5 last year.

They have called on Lim to clarify how a company set up after the tender dateline was given the contract.

Early this month, state secretary Farizan Darus dan financial officer Mokhtar Mohd Jait revealed that the Consortium was set up as a special purpose vehicle (SPV) merely to take up the mega project.

The consortium’s main shareholders were Zenith Construction Sdn Bhd and China Railway Construction Corporation Ltd, with joint 70% equity share; Beijing Urban Construction Group with 10% equity; Sri Tinggi Sdn Bhd 10% equity; and Juteras Sdn Bhd 10% equity.

Zarul recently told Roketkini on March 6 that the paid-up capital of the shareholders was RM4.5 bilion, which exceeded the state government criteria of RM381 million.

Meanwhile, in a related development, Konsortium Zenith denied allegations that it was headed by a former bank executive who was convicted, jailed and fined for CBT.

“This is false allegation. No person heading the five companies have been convicted, jailed and fined for CBT,” Konsortium Zenith said in a statement.