Several quarters have expressed shock that an Umno politician and businessperson has been paid millions for consultancy work on the undersea tunnel project by Consortium Zenith Construction Sdn Bhd.

Deputy Chief Minister II P Ramasamy said this is the first time he has been informed about the matter.

"I am indeed surprised to hear about it. I am shocked to hear that the firm has paid the politician and businessperson for the tunnel project," he said.

"What consultancy work have they been paid for? And now they have been sent legal letters because they did not do their work?"

"The Umno politician and businessperson must come clean and explain why they have taken money for this project," Ramasamy said.

"But since this matter has come to light, the Malaysian Anti-Corruption Commission (MACC) must question the individuals who have received the money," Ramasamy told Malaysiakini.

Read: Azeez dumbstruck, says knows nothing of Zarul, Zenith or RM3m

He was referring to Zenith, which issued demand letters to Umno Baling MP Abdul Azeez Rahim (photo) and a businessman for RM3 million and RM19 million respectively for consultancy work related to the tunnel.

Zenith CEO Zarul Ahmad Zulkifli, when contacted, said he is on sabbatical, and declined to comment.

Numerous calls to Azeez, who is also Tabung Haji chairperson, went unanswered except one at 11.55am when the politician said: "Sorry, I can't talk right now".

Penang BN leaders - state chief Teng Chang Yeow and Pulau Betong assemblyperson Muhamad Farid Saad - who have been vocal about the project, describing it as a "scandal", declined to comment about the matter.

The consortium, a special purpose vehicle, was formed in 2013 to implement the project after the firm was awarded the RM6.3 billion project via an open tender process by the Penang government.

A reliable source told Malaysiakini yesterday that the letters of demand were sent to the duo on Feb 24.

The source said the sums were paid by Zenith to the duo for consultancy work in regulatory compliance and risk management work related to the 7.2km undersea tunnel project.

The sum paid was allegedly to ensure the consortium's interest in the Penang undersea tunnel and other related works were properly and legally secured with the relevant authorities, the source added.

The source also stressed that Zenith is suing the duo for allegedly failing to execute their tasks to deliver the required consultancy services as per their agreement with Zenith in July 2017.

Blanket corruption at work?

Meanwhile, graft watchdog Center to Combat Corruption and Cronyism (C4) Penang coordinator Stanley Sudhagaran asked, "Is this daylight corruption blanketed under a RM22 million consultancy work?"

"This is madness. This sort of business practice should be stopped. It is we who bear the cost at the end of the project," he said.

"It is worse that an MP is involved in this. Is MACC investigating the Baling MP and businessman over the matter?

"Who else has been involved? Any public officers benefiting from this?" He asked.

Sudhagaran (photo) asked why money had to be paid to get a public project like the tunnel and three highways done.

He further questioned whether this is because Penang is an opposition state, thus necessitating strings to be pulled for federal approval.

"Is the state government aware of this? If yes, they, too, have to answer on this matter," Stanley added.

Since early this year, MACC has conducted a major probe on Zenith and the tunnel project, querying 70 and arresting four, including two high ranking executives with "Datuk" titles to assist in the probe.

A MACC source told pro-government media that the probe allegedly involved kickbacks to politicians.

Ramasamy, who is not involved in the project but privy to state executive meetings on the tunnel and state exco Lim Hock Seng, who oversees public works, utility and transportation, had also been grilled by the MACC earlier this month.