KUALA LUMPUR (Aug 28): The defence in Lim Guan Eng’s Penang undersea tunnel case attacked the credibility of key witness Datuk Seri G Gnanaraja in court on Thursday.
At the Sessions Court, lawyer Ramkarpal Singh highlighted that Gnanaraja is bankrupt, quizzing the businessman for owing his former lawyers Messrs Dennis Nik & Wong more than RM5 million after they got him off cheating and money laundering charges in 2020.
Ramkarpal pointed out to the court that Gnanaraja, despite securing an acquittal, had failed his lawyers, resulting in the law firm suing him.
Ramkarpal: As a result of the non-payment of the legal fees, your lawyers from Messrs Dennis Nik Wong had filed a suit against you?
Gnanaraja: Yes, but the bills (legal fees) tak munasabah (unreasonable).
Ramkarpal: The firm managed to get a judgement in their favour that you owe the legal fees in excess of RM5 million.
Gnanaraja: Yes.
Ramkarpal: As a result of this, you were declared bankrupt on Dec 12 last year (while showing the letter from the insolvency department).
Gnanaraja: Yes, but I am applying to set aside the order.
Ramkarpal: Besides not paying your lawyers and being declared bankrupt, you managed to hire a lawyer as a watching brief in this case? I hope you are able to pay the legal fees.
Gnanaraja: Yes.
Gnanaraja has hired senior lawyer Tan Sri Muhammad Shafee Abdullah to hold a watching brief for him in the Penang undersea tunnel case.
He was first charged at the Shah Alam Sessions Court in 2019.
He was later acquitted of those charges after he pleaded guilty to an alternative, lesser charge for an offence under the Companies Act 2016 for using his position as a director to obtain a personal gain, and paid a RM230,000 fine.
Ramkarpal also claimed that the businessman was also being investigated for alleged cheating in a foreign exchange case, to which Gnanaraja agreed he was investigated but never charged.
The businessman denied Ramkarpal’s assertion that he is a cheat following the past allegations.
Bumiputera accounts
The lawyer further disputed Gnanaraja’s testimony last month, where he claimed that Lim had directed him to form a Bumiputera company and open a bank account to facilitate purported graft payment to the DAP politician.
Gnanaraja had testified that he had formed Bumi Muhibah Holdings Sdn Bhd in 2016, with two Malay directors, but he was the man behind the company that he described was an investment company.
Ramkarpal: You said that Lim had asked you to open the company and bank account when you met Lim on Aug 20, 2017.
Gnanaraja: Yes.
Ramkarpal: However, Bumi Muhibah and the company opened an account at the CIMB bank at KLCC on May 24, 2016 before you met Lim.
Gnanaraja: Agreed, but Lim had asked [for] the bank account and the Form 49 CCM form [to] be shown to him.
The witness said he facilitated the use of his company and bank account as he respected Lim as the then chief minister of Penang and a politician.
Actor
Ramkarpal also pointed out in court that Gnanaraja is an actor who once starred in a Tamil movie, suggesting that despite his law qualification, he is adept at acting as well.
He further asserted that despite being injured in an incident described by the police as a robbery this month as well as his claims of being unwell on Wednesday, Gnanaraja had failed to produce a medical certificate. The businessman agreed with the assertion.
Gnanaraja is the 37th prosecution witness testifying in Lim’s graft trial.
Lim, 64, 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 in return for aiding Datuk Zarul Ahmad Mohd Zulkifli’s company to secure the project.
The former finance minister, who is the current Bagan member of parliament and Ayer Putih assemblyman, is also accused of accepting RM3.3 million in kickbacks. A purported RM2 million paid on Aug 18, 2017 via 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 undersea tunnel project.
The hearing continues before Sessions judge Azura Alwi on Oct 14 and 15.