KUALA LUMPUR (April 20): Controversial businessman Datuk Seri G Gnanaraja on Monday in the Sessions Court denied that he had struck a deal with the prosecution to reduce his cheating charges in Shah Alam, so that he would testify in former Penang chief minister Lim Guan Eng’s undersea tunnel graft trial.

Gnanaraja, who is the 37th prosecution witness, was asked by Lim’s counsels Tiara Katrina Fuad and Mohd Haijan Omar with regards to the outcome of his cheating charges, to which he had pleaded guilty on an alternative charge under the Companies Act 2016.

The businessman was asked by the lawyers over an affidavit he had made in the trial, where Gnanaraja had affirmed his willingness to testify in another trial if the cheating charges were dropped.

Gnanaraja, 45, agreed with the content of the affidavit, but denied that he had struck a deal with the prosecution, explaining that the deal was struck with his lawyers from Messrs Dennis Nik & Wong.

The witness was put to a line of questioning that the RM19 million which he had received from Consortium Zenith BUCG Sdn Bhd former director Datuk Zarul Ahmad Mohd Zulkifli was to resolve Zarul Ahmad’s money laundering case and where RM2 million was to be paid to Najib.

Gnanaraja had said that the sum was a friendly loan from Zarul Ahmad and not meant to resolve his money laundering case. However, Zarul Ahmad in his testimony in this trial maintained that this was not a loan, but rather to resolve the money laundering case.

As a result of this, Tiara Katrina suggested that due to this conflicting testimony, Gnanaraja was not a credible and trustworthy witness in the trial, which Gnanaraja denied.

Tiara: I put it to you that you cannot be trusted, as your testimony that the RM19 million is a friendly loan that you claimed [whereas] you are charged is not logical?

Gnanaraja: I disagree.

Tiara: The only reason you accused my client is because you struck a deal with the public prosecutor, so that the (cheating) charges against you are withdrawn?

Gnanaraja: I disagree.

Tiara: As proven, the charges were withdrawn because you offered to testify in another case?

Gnanaraja: I do not agree with the word offer. I did not say I negotiated or offered.

Tiara: I put it to you that the reason your charges are dropped is so that you may lie (to implicate Lim) in this case?

Gnanaraja: I disagree.

Tiara: You are willing to throw him (Lim) under the bus in order to save your own?

Gnanaraja: I disagree.

Tiara: You lied in your testimony in alleging that RM2 million that you obtained was given to Lim as part of the RM19 million.

Gnanaraja: I disagree

Tiara: None of your evidence in this trial can be believed?

Gnanaraja: I disagree.

The businessman was initially charged with three counts of cheating and 64 counts of money laundering. However, on Dec 23, 2020, he pleaded guilty to an alternative charge under the Companies Act 2016, for using his position as a director to obtain a personal gain where he paid a fine of RM230,000 and the cheating charges were taken into consideration.

Haijan then continued the cross-examination, reiterating and suggesting that Gnanaraja had made a deal with the prosecution, to which Gnanaraja reiterated that he had only dealt with his lawyers.

The defence lawyer then pointed out that part of the deal with regards to the money laundering charges was that he had to pay a compound and when asked whether Gnanaraja paid any compound, the businessman seemed evasive.

Haijan then pointed out that one of Gnanaraja’s money laundering charges was a sum of RM2.2 million paid to the Home Ministry, with Gnanaraja insisting this was his contribution paid on behalf of Yayasan Usaha Ventures Malaysia.

However, the lawyer quizzed the witness as to why the sum of RM2.2 million was paid from his company Bumi Muhibah Sdn Bhd, with Gnanaraja admitting that the sum came from the company.

It was established that the RM19 million came from Zarul Ahmad, which was to settle his money laundering investigations by the Malaysian Anti-Corruption Commission and allegedly to pay to Lim.

Haijan: The money that came out was not on behalf of Bumi Muhibah?

Gnanaraja: At one time, I led the Yayasan (Usaha Ventures).

Haijan: At that time, in September 2017, the foundation was investigated by the police as it became a big issue as there were investors putting their money in it and there was also civil proceedings against the company and yourself?

Gnanaraja: Yes.

Haijan: The purpose of the RM2.2 million was not for charity purposes but as a directive from the prosecution due to the money laundering and police investigation to be paid to the secretary general of the Home Ministry?

Gnanaraja: Yes.

Haijan: You using RM2.2 million from the Bumi Muhibah account is considered an offence as the money from Yayasan Ventures should have been used?

Gnanaraja: I disagree that it is wrong.

Haijan: You received a lot of profit where you used money from (the RM19 million) to pay and hence you reap benefits from it?

Gnanaraja: I disagree.

Haijan: You got a huge benefit from the deal that you made with the public prosecutor?

Gnanaraja: I disagree.

The witness was also asked about his text message exchanges with Zarul Ahmad, where Gnanaraja had referred to the term “big boss” several times, and he agreed that at most times, the term was to refer to the former prime minister Datuk Seri Najib Razak.

Gnanaraja also agreed that in these text messages, he did use the term “CM” or “Lim” to denote the accused.

In the earlier part of the trial, deputy public prosecutor Datuk Wan Shaharuddin Wan Ladin indicated that the prosecution intends to amend Lim’s charges by removing the word “accepting” involving the RM3.3 million gratification, to which the defence disagreed.

Lim is on trial for using his position as the then-Penang CM to solicit a 10% cut in the RM6.3 billion undersea tunnel project’s profits from Zarul Ahmad, in return for aiding Zarul Ahmad’s company to secure the project.

The 65-year-old 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, and Aug 29, 2017, via Gnanaraja, is said to be part of the RM3.3 million.

Lim, who is currently DAP adviser, also faces two counts of dishonest misappropriation of property, in the release of 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.

As a result, Sessions Court judge Azura Alwi fixed submissions to the amendments of the charge on Tuesday.

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Gnanaraja maintains RM19 mil was a 'friendly loan' from Zarul Ahmad despite cheating charges