Anti-graft watchdog Center to Combat Corruption and Cronyism (C4) has called for a moratorium on all projects with Consortium Zenith Construction as the company is currently undergoing investigation by the MACC.
In the event that Consortium Zenith is found to be involved in corrupt practices, the NGO wants the Penang government to apply Clause 14.5 of its preliminary agreement to terminate the company.
Penang C4 coordinator Stanley Sudhagaran said the moratorium should cover the Penang undersea tunnel and three paired roads that Consortium Zenith is involved in.
“Although the investigation itself is in relation to the tunnel project, the MACC probe into Zenith on corrupt practices warrants a moratorium on all its projects, including the three paired roads, until Zenith is cleared by the MACC,” Stanley, who is one of the signatories of a statement issued by C4, told Malaysiakini.
Stanley clarified that news reports on the C4 statement yesterday missed the point by stating that C4 merely called for a moratorium on the controversial tunnel project.
Malaysiakini has contacted Consortium Zenith for its response to C4’s statement.
On July 2 last year, the firm’s senior executive Zarul Ahmad Zulkifli claimed he was pressured into paying RM22 million, including RM3 million to an Umno politician, to stop the MACC investigation into the undersea tunnel project.
C4’s statement comes after the charging in court of businessperson G Gnanaraja, on April 3, with cheating a company director of RM19 million to settle an MACC probe. And on April 8, Gnanaraja was charged with 68 counts of money laundering.
Meanwhile, C4 director Cynthia Gabriel (photo) called on the MACC to speed up its probe into Consortium Zenith so that “all possible malfeasance” related to its practices, if any, may be exposed in the interest of transparency.
Cynthia wants the Penang government to conduct businesses only with companies that have “strong anti-corruption compliance mechanisms”.
She said in the joint statement: “Chief Minister Chow Kon Yeow needs to send a strong message that the Penang government will not compromise nor accept unethical and corrupt practices, that they would live up to high standards of integrity and good governance.
“Chow needs to call for an independent audit on all Zenith companies to eliminate any conflict of interest and potential corruption.”
In January last year, the MACC launched an investigation into the RM305 million feasibility study for the Penang undersea tunnel to see if money was misappropriated from it to pay kickbacks to key politicians.
In the process, the MACC raided Zenith’s offices in Kuala Lumpur, arrested several key personnel of the company and questioned about 100 individuals.
Penang government leaders have insisted that the project was awarded, via open tender, while denying any knowledge of kickbacks or the RM19 million to settle the case with MACC. - Mkini
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