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21 JUNE 2026

Friday, July 24, 2026

MACC officer says Penang govt suffered loss in land swap for undersea tunnel project

 


The Kuala Lumpur Sessions Court was today told that the Penang government suffered a loss after awarding a plot of state land to a developer as payment for the feasibility study of the RM6.3 billion Penang undersea tunnel and roads project.

MACC Investigation Division senior superintendent Zulhilmi Ramli, 34, testified that the payment was made to settle a RM135 million claim through the transfer of state-owned Lot 702 to Consortium Zenith Beijing Urban Construction Group (CZBUCG).

The 38th prosecution witness said this during cross-examination by defence counsel Haijan Omar, representing former Penang chief minister Lim Guan Eng in his corruption trial.

Asked by Haijan the final amount claimed by CZBUCG under the land swap arrangement involving Lot 702, Zulhilmi replied that it was RM138 million.

He agreed with the defence that although CZBUCG’s final claim totalled RM138 million, Lot 702 had been valued at only RM135 million.

Former Penang chief minister Lim Guan Eng

Haijan then asked whether the state government had settled the payment for CZBUCG’s work through the transfer of Lot 702, valued at RM135 million.

“I agree,” Zulhilmi replied.

Haijan then suggested that, based on Zulhilmi's earlier testimony, work had been carried out, certified by independent technical consultant HSSI Integrated Sdn Bhd, and that Lot 702 could be used as payment, and the state government had not suffered any loss through the transfer of the land.

“I disagree,” Zulhilmi responded.

‘10pct profits’

Lim, 65, is charged with using his position as Penang chief minister to obtain a gratification of RM3.3 million by allegedly helping a company owned by former Consortium Zenith Construction Sdn Bhd director Zarul Ahmad Zulkifli secure the RM6.341 billion Penang major roads and undersea tunnel project between January 2011 and August 2017.

He also faces a second charge of soliciting 10 percent of the profits expected to be earned by Zarul as an inducement for helping the company secure the project.

Consortium Zenith Construction Sdn Bhd director Zarul Ahmad Zulkifli

The offence was allegedly committed near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City, between 12.30am and 2am in March 2011.

In addition, Lim faces two charges of causing the disposal of two plots of Penang government land, valued at RM208.8 million, to developer companies linked to the undersea tunnel project.

The alleged offences took place at the Penang State Land and Mines Office in Komtar on Feb 17, 2015, and March 22, 2017.

The trial before judge Azura Alwi continues on Aug 3.

- Bernama

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