Penang officials met contractor before open tender, ex-exco man admits

 

Former Penang exco Lim Hock Seng said the Penang government had told Consortium Zenith many times that there was no assurance they would get the project.

KUALA LUMPUR: The sessions court in Lim Guan Eng’s Penang undersea tunnel corruption trial heard today that state government officials had met the contractor to prepare a request for proposal (RPF) document before the state started the open tender.

Former executive councillor in charge of public works, public utilities and transportation affairs Lim Hock Seng said the officials met representatives from Consortium Zenith BUCG Sdn Bhd (CZBUCG) in July 2011, a few months before the state government called for a pre-qualification exercise in November 2011.

Deputy public prosecutor Wan Shaharudin Wan Ladin pointed out that over 10 companies, including contractor CZBUCG, were shortlisted for the job.

Wan Shaharudin: Was the July 2011 meeting (between government officials and CZBUCG) an official secret?

Hock Seng: We had yet to announce our plan at that time.

The DPP then asked about two memorandums of understanding inked between Penang and CZBUCG in 2011 for the tunnel and roads project.

The RM6.3 billion project, comprising an undersea tunnel and three roads, was mooted by the state government to alleviate the traffic jam on Penang bridge.

“Under the terms in both MoU, were the words ‘open tender’ stated anywhere?” Wan Shaharudin asked.

To that Hock Seng replied “No”.

“Prior to the pre-qualification exercise at the end of 2011, you spoke to Zarul Ahmad Mohd Zulkifli. Your officers met with his company’s representatives to prepare an RFP document, and the excos even went on a trip to see the Chinese company.

“Were these actions deemed as something ‘sinister’ in an attempt to award CZBUCG the project through direct negotiations?” Wan Shaharudin asked. Zarul is the senior director in CZBUCG.

The court previously heard that 10 officials from the Penang government were invited for a one-week official trip to Beijing Urban Construction Group (then the majority shareholder in CZBUCG), from June 2-8, 2011.

Guan Eng’s lawyer Gobind Singh Deo then said the manner in which the prosecution conducted its re-examination was akin to cross examination.

“He (Hock Seng) is the prosecution’s witness. If he wanted to provide further explanation, the DPP should let him speak,” he added.

Wan Shaharudin told the court that their questions were on whether the project was an open tender or otherwise.

Hock Seng said he wanted to explain issues related to the open tender, adding that the Penang government had told CZBUCG many times that there was no assurance they would get the project.

“I need to present the facts to the court so everyone knows what happened,” he added.

Meanwhile, another witness, Muhamad Azrai Mohamad Zaini, also gave evidence today. Azrai was previously attached to the State Economic Planning Unit (Upen) and is now chief minister Chow Kon Yeow’s principal private secretary.

Azrai said he was aware of the undersea tunnel and roads project when he was in Upen.

“The feasibility studies were done for the three roads but I am not sure about the studies on the detailed design.

“Two plots of land were the payment to Zarul’s company after they completed the feasibility studies,” he added.

Guan Eng is accused of using his position as then Penang chief minister to ask Zarul for a 10% cut of the profits which would be made from the project.

The former finance minister is also accused of seeking RM3.3 million in kickbacks to appoint Zarul’s company to undertake the project.

Guan Eng also faces two counts of dishonestly misappropriating RM208.7 million worth of state land to two companies.

The hearing continues tomorrow before judge Azura Alwi. - FMT