Two DAP state executive councillors (excos) have issued contradictory statements over the amount paid to Consortium Zenith Construction Sdn Bhd with regard to the Penang undersea tunnel project and the construction of three major highways on the island, a BN state assemblyperson said.

Umno's Pulau Betong representative Muhammad Farid Saad said the statement made by Chow Kon Yeow conflicted with the reply given by 
Lim Hock Seng, who gave a reply to his (Farid's) question on the same issue at the state legislative assembly on May 22.

Chow chairs the Penang local government and traffic management committee, whereas Lim chairs the state's public works, utilities, and transportation committee.

"I urge Lim to explain whether Chow's statement is true and right, or whether his (Lim's) reply to me was true and right," Farid (photo) said in a statement.

"If Chow's remarks are true and right, this means that Lim gave us wrong and false information at the state legislative assembly," he added.

"Action must be taken against him (Lim), as he has confused the state legislative assembly with wrong and false information."

According to Farid, on May 22, Lim said the payment made to all quarters involved in building the three roads and undersea tunnel amounted to about RM219 million, of which RM208,755,080 had been paid to Zenith as the project contractor. Lim had added that the costs excluded payment to Detailed Environmental Impact Assessment (DEIA) consultants. 

This contradicts what Chow said on June 24, that the RM177.5 million paid to Zenith was not only for civil and structural costs, but also included payment for 10 other elements, including the DEIA.

Chow was then refuting BN strategic communications (BNSC) director Abdul Rahman Dahlan, who said on June 20 that the fee was 400 percent higher than the allowed scale of fees under the Registration of Engineers Act 1967.

Rahman, who is also a minister in the Prime Minister's Department, had threatened to lodge a report on the matter with the Malaysian Anti-Corruption Commission if the Penang government did not respond within a week.

'Zenith only paid for work done'

In an immediate response to Farid, Lim said the Penang government had only paid Zenith for its work done on the DEIA report.

He said Chow’s remark on June 24 referred to the DEIA report which had already been carried out by Zenith.

However, the state government has appointed an independent consultant to review the DEIA report prepared by Zenith on the road and tunnel project.

“The independent consultant had to carry out additional studies, including preparing a report, and to manage the entire process related to obtaining the approval of the Department of Environment,” Lim told Malaysiakini.

“The state has yet to pay this independent consultant for its report.

“When all the process related to the DEIA by the independent consultant is complete, payment will be made and this amount will be reimbursed by Zenith, as stated in our agreement,” he added.

According to theSun, Chow clarified last Saturday that the RM177.5 million that was fully paid to Zenith included 10 other elements.

Among others, these are for land survey, detailed environmental impact assessment (DEIA), land tunnel design, social impact study and traffic impact study.

But the civil and structural (C&S) consultancy fee was only RM64.3 million and not RM177.5 million, Chow claimed.

He said the C&S fee for the three roads and tunnel came to only 1.86 percent of the entire project cost of RM5.49 billion.

Chow also said that the 1.86 percent was lower than the maximum of 2.54 percent for projects over RM1 billion imposed by the federal Board of Engineers.

In an immediate response to Farid, Hock Seng said the Penang government has only paid Zenith for its work done on the DEIA report.

Hock Seng said Chow’s remarks on June 24 referred to the DEIA report which has already been carried out by Zenith.

However, the Penang government has appointed an independent consultant to review the DEIA reports prepared by Zenith on the road and tunnel project.

“The independent consultant has to carry out additional studies, including preparing a report, and to manage the entire process related to obtaining the approval of the Department of Environment,” Lim told Malaysiakini.

“The state has yet to pay this independent consultant for its report,” Lim added.

“When all the process related to the DEIA by the independent consultant is complete, payment will be made and this amount will be reimbursed by Zenith, as stated in our agreement,” he added.