KUALA LUMPUR (Sept 10): A Malaysian Anti-Corruption Commission investigator maintains that Consortium Zenith BUCG Sdn Bhd received a lot of advantages compared to four other parties bidding for the Penang undersea tunnel and four road projects.
Testifying in the corruption trial of former Penang chief minister Lim Guan Eng at the Sessions Court on Thursday, MACC investigator Zulhilmi Ramli maintained this stance despite Guan Eng's lawyer showing him excerpts of a 2011 memorandum of understanding between the Malaysian and Chinese governments on the tunnel.
Ramkarpal Singh also referred to the testimony of former Penang executive councillor Datuk Lim Hock Seng that the deal was not a direct award.
RamKarpal asserted that the MoU, which the Penang executive council, in consultation with the state legal adviser, had discussed before it was signed, did not stipulate that Consortium Zenith BUCG Sdn Bhd would be awarded the project as it was merely an MoU. Zulhilmi disagreed with this.
Consortium Zenith BUCG is a joint venture between Zenith Construction Sdn Bhd and China Railway Construction Ltd, in addition to Beijing Urban Construction Group (BUCG), Sri Tinggi Sdn Bhd and Juteras Sdn Bhd.
Ramkarpal: Lim as chief minister had asked the Penang state legal adviser to scrutinise the MoU?
Zulhilmi: Yes, I agree
Ramkarpal: Lim wanted the state legal adviser to ensure that the Penang government would not have to be burdened by costs following the MoU?
Zulhilmi: Yes, I agree
Ramkarpal: There is no certainty in the MoU that the construction contract is given here?
Zulhilmi: Yes, correct.
Ramkarpal: As early as Feb 2011, Lim as chief minister was clear in asking the state legal adviser to ensure that BUCG was not guaranteed being granted the construction contract as agreed by the Penang exco?
Zulhilmi: I disagree
Ramkarpal: That is what Lim Hock Seng had told this court, that there was no guarantee that Consortium Zenith BUCG would get the project as this would be open tender?
Zulhilmi: I disagree
Ramkarpal: The open tender was no guarantee that the project would be given to Consortium Zenith BUCG?
Zulhilmi: I disagree.
Prior to this Consortium Zenith BUCG former director and vice-president Datuk Zarul Ahmad Mohd Zulkifli, the star witness in the trial had testified that his company would get the project via direct tender, before the Penang government reverted to open tender.
Despite this, Zarul Ahmad had claimed that Guan Eng had assured him that Consortium Zenith BUCG would get the project.
Four other parties had submitted bids for the project
Zulhilmi was asked by Ramkarpal to name the four other parties, and the 38th prosecution witness replied: VST Cemerlang Sdn Bhd and China State Construction Engineering Corporation Ltd, WCT Berhad-Daewoo Joint Ventures, IJM-CRGL Joint Ventures and ECK Construction Sdn Bhd.
The witness added besides interviewing Hock Seng, he and MACC also interviewed four other exco members including Chow Kon Yeow, who is the present Penang chief minister.
Ramkarpal: I suggest to you that the four interviewees had replied that the project would be done via open tender?
Zulhilmi: I disagree.
The witness said Consortium Zenith BUCG had a distinct advantage over other companies at the request for proposal stage (RFP) stage, as it was briefing by Penang government officials on the project, something not done to the other bidders.
“The result of my investigation shows that as early as 2011, Guan Eng had promised Zarul Ahmad this project via direct negotiations. Then this project was changed to open tender.
“Despite this, Guan Eng promised Zarul that his company would be assisted by Penang government officers.
"Guan Eng's actions can be seen through Lim Hock Seng’s evidence, where assistance was given to Zarul Ahmad at an initial meeting held between Zarul Ahmad and the Penang government, and Consortium Zenith BUCG’s participation in the technical and RFP meetings,” Zulhilmi added.
Guan Eng is charged with using his position as the then Penang chief minister to solicit a 10% cut from the RM6.3 billion undersea tunnel project’s profits 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.
As part of this payment, a total of RM2 million was allegedly paid on Aug 18, and Aug 29, 2017, via intermediary Datuk Seri G. Gnanaraja.
Guan Eng also faces two counts of misappropriating property by releasing two plots of state-owned land, cumulatively worth RM208.75 million, to Ewein Zenith Sdn Bhd and Zenith Urban Development — two property companies, which are linked to the project.
Before the conclusion of Thursday’s proceedings, deputy public prosecutor Datuk Wan Shaharuddin Wan Ladin informed Sessions Court Judge Azura Alwi that the prosecution would call former Penang City Council engineering director Datuk Rajendran Peter Anthony (now Penang city council mayor) as the final witness.
The hearing before Azura will continue on Sept 28 and the court also fixed 12 other hearing dates spanning into next year.