KUALA LUMPUR (July 24): A Malaysian Anti-Corruption Commission (MACC) investigating officer (IO) on Friday disagreed with suggestions made by Lim Guan Eng’s defence lawyer that Penang had not suffered losses over the contra deal of two plots of land — Lot 702 and Lot 713 — on the island, which were given in exchange for the construction of three-main roads after the feasibility study of the project was completed.
The IO, Zulhilmi Ramli, 34, testified during examination-in-chief by the prosecution that he took into consideration that the two lots (702 and 713) were given after the feasibility study of the Penang undersea tunnel by Consortium Zenith Construction BUCG Sdn Bhd (CZBUCG) director Datuk Zarul Ahmad Mohd Zulkifli’s company.
“This resulted in a loss suffered by the Penang government, as it had disposed of the two government-owned land lots to CZBUCG as a land-swap deal. This is in line with the statement (evidence) of Datuk Ewe [Swee Kheng] over the deal made with the accused (Lim) in 2011,” Zulhilmi said.
The late Ewe, who owned Zenith Construction Sdn Bhd, passed away in October 2021. He was slated to be one of the prosecution witnesses before his sudden demise.
Following Ewe's death, his recorded statement with the MACC had been tendered by the prosecution in the trial.
Zulhilmi said he had obtained the preliminary agreement for the “Privatisation of the Major Roads and Tunnel Projects in Pulau Pinang between the State Government of Penang and Consortium Zenith BUCG Sdn Bhd” and that this was his finding over the state government's loss.
When confronted on this issue by Lim’s counsel Mohd Haijan Omar, who pointed out that the feasibility study referred to was only on the three main roads and not the Penang undersea tunnel, Zulhilmi agreed to his mistake.
Haijan continued to show that the land exchange, especially on Lot 702, had nothing to do with the Penang undersea tunnel as Zulhilmi had said during examination-in-chief.
The lawyer also showed that the valuation of the land was much lower than the feasibility study of the three roads, which was supposed to cost some RM350 million, to illustrate the point that the Penang government had not lost out, as alleged by the IO.
However, when confronted on these matters several times by Haijan through the showing of valuation reports from a private valuer as compared to the government's valuation, Zulhilmi continued to disagree with the defence.
At one point, the MACC IO said he got the information on the Penang government losing out from the deal over the mega construction from Zarul Ahmad.
Zarul Ahmad previously testified that he felt the Penang government had lost out when the land was given in exchange for the project when it was given early at the feasibility study stage, and not when the three roads were completed.
He had also testified that the Penang undersea tunnel was not feasible.
CZBUCG sold the land to Ewe in an earlier-agreed arrangement.
Currently, Lot 702 houses the multi-development housing project known as City of Dreams.
Lim 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 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 getting RM3.3 million in kickbacks. A purported RM2 million paid on Aug 18, 2017 and Aug 29, 2017, via businessman Datuk Seri G Gnanaraja, is said to be part of the RM3.3 million.
Lim, who is currently the 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.
The trial before Sessions Court judge Azura Alwi continues on Aug 3.
The prosecution was led by deputy public prosecutor Datuk Wan Shaharuddin Wan Ladin.