KUALA LUMPUR (April 14): A key witness in Lim Guan Eng’s undersea tunnel graft trial on Monday said his then-firm, Consortium Zenith BUCG Sdn Bhd (CZBUCG), did receive a distinct advantage from the Penang government and its then-chief minister, when it bid for the project.

Former CZBUCG vice-president Datuk Zarul Ahmad Mohd Zulkifli said he was initially a broker for Beijing Urban Construction Group (BUCG) to bid for the project, and his company received an advantage as early as in January 2011 — getting an indication that his company would be favoured for the project.

He said his company had been involved in direct negotiations for the project, but then the Penang government had decided to change it from direct negotiation to an open tender system.

Zarul Ahmad said despite the change to open tender, and despite several companies having to bid for the project by submitting their requests for proposal (RFPs), Lim had assured him that his company would get the project.

When replying to questions from deputy public prosecutor Datuk Wan Shaharuddin Wan Laden during re-examination, Zarul Ahmad said that Lim had told him that he (Lim) had preferred the construction of a tunnel rather than a third bridge from the mainland to Penang island.

“Lim told me that a tunnel would require less approval from the federal government, and being an opposition state (at that time), this was something that it wanted (to involve federal government inclusion). Furthermore, Lim told me [to get] my company to bid for the tunnel project,” he added.

This is despite Zarul Ahmad saying that tunnel construction might not be feasible when the proposal for tunnel construction was made known in May 2011.

Zarul Ahmad further said that for the RFP requested by the authorities on July 11, 2011, his company was the only one who knew about the construction of a fourth project, namely the back road from Tanjung Bungah to Teluk Bahang.

He added that despite four companies, namely IJM Corp Bhd (KL:IJM), WCT Holdings Bhd (KL:WCT), Gamuda Bhd (KL:GAMUDA) and CZBUCG, bidding for the tender, the information on the fourth project was only known to CZBUCG, providing it with a distinct advantage to prepare its RFP.

The prosecution witness said that he had been briefed about the fourth project in July 2011 by Penang City Council engineer Datuk Rajendran Anthony, then-exco member Lim Hock Seng, and another person.

“That provided my firm with a distinct advantage over it, as other bidders and companies did not receive the information,” Zarul Ahmad said about the RFP.

During cross-examination in February, when Lim’s defence suggested that Zarul Ahmad's firm had no distinct advantage in the multi-billion ringgit Penang undersea tunnel project, he agreed that all the bidders had equal advantage.

On Monday, Zarul Ahmad said his company had been asked by the authorities to prepare a single RFP for the four related projects.

“Normally, for four different projects, a bidder is required to submit four different RFPs. However, my company had been told by the authorities to submit one RFP as it involves related projects,” he said, when relating how his company got an added advantage.

Zarul Ahmad also related that he knew in advance that a coastal reclaimed land, namely Lot 702, would be given to his company to be “booked” (kept in reserve) for Datuk Ewe Swee Kheng, the founder of CZBUCG, in exchange for agreeing to pay for part of the Penang undersea tunnel project.

He added that Lot 702 is a freehold property and has now been developed into a 40-storey twin tower which is an iconic spot called the City of Dreams.

Earlier in the trial, another witness had stated that the land was initially reserved for a Tenaga Nasional Bhd (KL:TENAGA) substation, but then had its status changed by the Penang state government to a freehold property.

Zarul Ahmad said Ewe had been paying to reserve Lot 702 since the year 2013.

“Ewe told me he met Lim and expressed his interest to develop Lot 702. Following that, Lim asked Ewe to contact me to get my commitment for Lot 702, and the land would be given to me (for it to be reserved for Ewe),” he said.

Zarul Ahmad said his company received RM12 million from Ewe as working capital for the project, as BUCG had decided to withdraw from the (undersea tunnel) project due to a change of directors.

“As of 2017, a sum of RM130 million was received by my company, from Ewe (to reserve the reclaimed land),” he added.

Ewe passed away in 2021, after falling from a high-end condominium in Penang.

Lim, who is Bagan MP and Ayer Putih assemblyman, is on trial for using his position as the then-Penang chief minister to solicit a 10% cut in the RM6.3 billion undersea tunnel project’s profits from Zarul Ahmad, in return for aiding his company to secure the project.

The 64-year-old DAP chairman and former finance minister is also accused of accepting RM3.3 million in kickbacks. A purported RM2 million paid on Aug 18, 2017, via businessman G Gnanaraja, is said to be part of the RM3.3 million.

Lim also faces two counts of dishonest misappropriation of property in releasing two plots of state-owned land, cumulatively worth RM208.75 million, to Ewein Zenith Sdn Bhd and Zenith Urban Development — two property companies linked to the controversial undersea tunnel project.

The trial will resume on Tuesday before Sessions Court judge Azura Alwi, with the continued re-examination of Zarul Ahmad by Wan Shaharuddin.

Read also:
Guan Eng's team trying to disprove Zarul Ahmad’s firm had advantage in getting Penang undersea tunnel project
Ewein founder chairman passes away