Tunnel project: HSSI does claims, not EIAs, says Lim

HSSI Sdn Bhd, an independent consultant appointed by the Penang government to verify claims made by the contractor for the undersea tunnel project, was offered the job via open tender, said Chief Minister Lim Guan Eng said today.

Lim said HSSI was engaged by the state government as an "independent checking engineer," and not to prepare environmental impact assessment reports.

He said HSSI was granted the job after an open tender process by the Penang Tender Committee, and because they submitted the lowest bid.

Treasury Instructions issued under the Financial Procedures Act 1957, Lim pointed out, required the state Tender Committee to be chaired by the state secretary with government officials as committee members.

"How come Teng as a former state executive councillor, is not aware of such laws?" Lim asked at a press conference in Georgetown this morning, referring to questions posed by Penang BN chairperson Teng Chang Yeow.

Yesterday, Teng (photo) said that RM11.2 million had been paid in cash to HSSI, adding this meant the state government had paid out monies for the undersea tunnel project.

Teng also asked if the state government could be truthful about the consultancy payment of RM11.2 million just for reviewing and certifying claims submitted by main contractor Consortium Zenith Construction Sdn Bhd.

Zenith had inked a deal with the state government in 2013 to build the RM6.3 billion, 7.2km undersea tunnel and three major highways linking the island to the mainland in Butterworth.

Teng, a former state exco, had also questioned why the state government was paying for the EIA approval when the payment is supposed to be borne by the contractor.

He claimed this was stated in the Public Accounts Committee report on Oct 19, 2015 which was tabled in the state legislative assembly.

To this, Lim replied that the cost of preparing for the EIA reports will finally be borne by Zenith.

Lim also reiterated that a RM208 million payment was made to Zenith in the form of a land swap of 3.7 acres of net developed land at an above market price of RM1,300 per square feet.

He said Teng "lied" when he claimed at his press conference yesterday that 50 acres of land had been swapped with Zenith.

"The state did not grant 50 acres of land to Zenith as claimed by Teng, neither is the state government responsible for any business transaction entered into by Zenith with other private companies which the state is not privy to, or has not approved," Lim said.- Mkini