Penang BN Youth has taken their opposition against the state government’s intent to implement a RM6.3 billion integrated road system including an undersea tunnel linking the island to Butterworth, to a new level.

Today, state BN Youth information chief H’ng Khoon Leng questioned if a key person involved in the joint-venture - Konsortium Zenith BUCG Sdn Bhd - which was awarded the tender to build the road project, had been “convicted of a commercial crime”.

H’ng said according to newspaper reports, the person had pleaded guilty to the charge and then became a prosecution witness.

“He had been alleged to have misused funds, and the lawyer said the case went for trial because of the irresponsible attitude of the senior officers involved,” said H’ng in a press conference today.

“Now the same person has appeared in the project. Can the project go smoothly and can he be trusted? We want to know whether the state government had been diligent enough in awarding this project (to the company),” he added.

Deal inked in Taiwan?

H’ng said according to “unconfirmed infomation”, the deal was finalised in Taiwan during a private meeting.

“Chief Minister Lim Guan Eng was at the meeting, why was the deal not sealed during the exco meeting? We want the CM to confirm whether this is true or not,” he added.

H’ng was referring to a New Straits Times report published on Dec 2, 1994 headlined ‘Ex-merchant bank chief exec charged’.

The report mentioned that two persons, former Rakyat Merchant Bank (RMB) and Khong Guan Holdings chief executive officers - Noraisidi Salim and Zakir Basree - jointly faced charges of criminal breach of trust (CBT) for contravening the Banking and Financial Institution Act for making false claims.

The daily also stated that Zakir was charged with abetting Noraisidi and three former RMB senior executives - one being Zarul Ahmad Zulkifli - of giving credit facilities over their limits.

Zarul is chairperson of Zenith Construction Sdn Bhd, one of the four companies under the consortium which has been given the task to develop the road system, slated for completion by 2025.

Consortium plans to sue

In an immediate response, Consortium Zenith BUCG Sdn Bhd referred to an NST report today headlined ‘Is Convicted Banker Linked To Firm? Tell the truth: Company headed by former banker won tender for RM6.3B Penang Infrastructure project’.

The consortium denied that any person heading the five companies had been convicted, jailed and fined for CBT.

“As such the false report by New Straits Times is clearly defamatory and designed to smear the reputation and good name of the five persons heading the five companies who were awarded the project,” said the consortium in a statement.

“We have instructed our lawyers to file a defamatory action against the New Straits Times as it is our opinion that this report is politically motivated to sabotage the RM6.3bil infrastructure project awarded by the Pakatan Rakyat state government,” the company added.

“At the same time, this article has smeared the reputation of the consortium and the four companies involved. We have been advised by our lawyers not to make any further comments.”

The consortium said it will demand the “retraction, unconditional apology and compensation for damages” over the newspaper’s report and that the matter will be dealt with in court.

The company warned that it will not hesitate to take legal action against any other parties that publishes similar lies to protect the reputation of the consortium and the four companies.