KUALA LUMPUR (July 18): A former Penang Land and Mines Department (PTG) director told the Sessions Court on Tuesday (July 18) that he did not know Ewein Zenith Sdn Bhd had made staggered payments totalling RM74.8 million to Consortium Zenith BUCG Sdn Bhd (CZBUCG) over the period from Nov 18, 2013, to March 30, 2015, for two plots of land in Penang, even though the plots were then still owned by the state.
The alienation of the two plots — Lots 702 and 713 in Bandar Tanjung Pinang — which are the subject matter in former Penang chief minister Lim Guan Eng’s undersea tunnel graft trial, was only undertaken sometime at the end of 2016, Datuk Akmar Omar testified.
Asked by deputy public prosecutor (DPP) Ahmad Akram Gharib whether he was aware of payments made by Ewein Zenith to CZBUCG as early as 2013, Akmar, the 35th prosecution witness, replied he was not.
Ahmad Akram: Did you know that between Nov 18, 2013 and March 30, 2015, Ewein Zenith had started payments to CZBUCG? [Nov 18, 2013 (RM12.5 million), Dec 23, 2013 (RM800,000), March 24, 2014, April 4, 2014, and April 24, 2014 (total payment of RM1.5 million), May 3, 2014 (RM3.3 million), Sept 5, 2014 (RM3.5 million) and March 30, 2015 (RM53.2 million)].
Akmar: I didn't know.
Akmar verified to the DPP that at that time, the land had not been transferred from the Penang government to CZBUCG. “In 2016, the land still belonged to the Penang government,” Akmar said.
Lim, 62, who is also Bagan Member of Parliament, is on trial for allegedly soliciting one-10th of the profit in the RM6.3 billion undersea tunnel project from CZBUCG former director Datuk Zarul Ahmad Mohd Zulkifli, in return for aiding Zarul's company to secure the project. Lim is also accused of accepting RM3.3 million in kickbacks from Zarul.
He also faces two counts of dishonest misappropriation of property in releasing Lots 702 and 713, cumulatively worth RM208.75 million, to Ewein Zenith Sdn Bhd and Zenith Urban Development Sdn Bhd — two property companies linked to the controversial undersea tunnel project.
The two plots were slated for the proposed construction of the City of Dreams, a luxury sea-front development in Bandar Tanjung Pinang.
Ewein Zenith is owned by the late Datuk Ewe Swee Kheng. He was initially slated to testify in the trial but died suddenly last year. However, his statement recorded by the Malaysian Anti-Corruption Commission was admitted in the trial.
Was special privilege given to the consortium?
Earlier, Akmar testified that between July 9, 2014, and Nov 25, 2016, he had represented the PTG in attending two Penang state exco meetings and one state alienation committee meeting, where Lim had chaired the meetings in his capacity as chief minister, and also as the exco in charge of land matters.
He said that on Nov 25, 2016, the state exco had given its approval for CZBUCG to, among others, sell and transfer the two plots to any company. It also received special approval to mortgage the plots to the bank or finance company for the purpose of 'bridging finance’ or 'overdraft facility'.
In addition, Akmar said special approval was given to CZBUCG to transfer the plots or residential or commercial units (subsequently built) to any buyer, and that special approval was given for the first buyer of the land, residential or commercial unit to mortgage it to a bank or finance company or the Malaysian Treasury for the purpose of obtaining a loan. On top of that, special approval was given to transfer the said property for the construction of a community hall, health clinic, and police station.
Before concluding, the former director was asked by the prosecution as to the status of the undersea tunnel project, to which Akmar replied that as far as he knows it had yet to commence.
Cross-examined by defence counsel Gobind Singh Deo, Akmar agreed that the undersea tunnel project is a vital project to ease traffic congestion on the island given that it is a huge problem.
Akmar agreed on the need to alleviate the serious traffic problem and the prioritisation of the project by the Penang government.
Gobind then pointed out that as such, no special privilege was given to CZBUCG in the approval process, to which Akmar agreed.
“However, for other applicants they may ask (the PTG) why my project is late for approval whereas this (land swap) is given priority due to the importance of the project with the state government,” the former director added.
The trial before Sessions judge Azura Alwi continues this week on Thursday until Friday.