Guan Eng ‘promised’ tunnel project to consortium, court hears

 MACC officer Zulhilmi Ramli says the firm held an advantage over others as it had participated in early discussions with state government officials in 2011.

Lim Guan Eng Lim is accused of using his position as then Penang chief minister to solicit a 10% share of profits from the undersea tunnel project, as well as obtaining RM3.3 million in bribes from a businessman. (Bernama pic)

KUALA LUMPUR:

A Malaysian Anti-Corruption Commission officer who investigated the Penang undersea tunnel project told the sessions court that former chief minister Lim Guan Eng initially “promised” to award the contract to Consortium Zenith BUCG Sdn Bhd through a direct tender.

Zulhilmi Ramli said his investigation revealed that Consortium Zenith – previously led by businessman Zarul Ahmad Zulkifli – held an advantage over the other firms bidding for the project because it had participated in early discussions with state government officials in 2011.

“Other companies (that later bid for the project via an open tender) were never involved (in early discussions).”

Based on what Zarul told him, Zulhilmi said the project was meant to be awarded through a direct negotiation.

“But it was later changed to an open tender.”

The court had previously heard that nine companies took part in the open tender, including Consortium Zenith, which eventually won the contract after it was given a high score of 93 marks by Penang state officials.

Other companies included China State Construction Engineering Corporation Ltd, VST Cemerlang Sdn Bhd, Setia Precast Sdn Bhd, ECK Construction Sdn Bhd, Gamuda Bhd, Zambina Wawasan Sdn Bhd, IJM-CRGL Joint Ventures and WCT-Daewoo Joint Ventures.

Zulhilmi also revealed that four investigation papers were opened in 2018 on the tunnel project.

He told the court that two investigation papers concerned alleged corruption and abuse of power involving Lim, one on false claims regarding the tunnel’s feasibility studies and detailed design, and one against another businessman, G Gnanaraja.

Zulhilmi affirmed that the probes against Lim were previously marked as “no further action”.

The hearing continues before judge Azura Alwi on Friday.

Lim is accused of using his position as then chief minister to solicit a 10% share of profits from the undersea tunnel project, as well as obtaining RM3.3 million in bribes from businessman Zarul.

He also faces two charges of dishonestly misappropriating RM208.7 million worth of state land.

In 2021, Zarul testified that Lim promised to give the RM6.3 billion undersea tunnel and roads project to the consortium via direct negotiation before making a U-turn and calling for an open tender.

Zarul said Lim made the promise in March 2011 and he was left disappointed by the U-turn. - FMT