Former Penang chief minister Lim Guan Eng made no prior disclosure of having earlier discussion with a company executive over the proposed island state’s undersea tunnel project, the Kuala Lumpur Sessions Court heard today.

Former Penang state executive councillor Lim Hock Seng testified that prior to the state government’s exco meeting on Jan 26, 2011, Guan Eng did not make any disclosure to him or the exco in relation to Zarul Ahmad Mohd Zulkifli.

Zarul was a senior executive director of Consortium Zenith Construction Sdn Bhd, the main contractor for the project. He is a key prosecution witness in the trial.

The third prosecution witness Hock Seng was testifying today in former finance minister Guan Eng’s corruption trial linked to the Penang undersea tunnel project.

Previously on July 14, the Sessions Court had heard Hock Seng’s testimony that Guan Eng had directed him to contact Zarul and Lee Chee Hoe, another senior executive of Consortium Zenith Construction.

The witness then had testified that Guan Eng directed him to contact Zarul and Lee during a Penang state exco meeting on Jan 26, 2011.

Former Penang state executive councillor Lim Hock Seng

Hock Seng today was replying to a query from deputy public prosecutor Wan Shaharuddin Wan Ladin during examination-in-chief.

Wan Shaharuddin: Has Lim Guan Eng declared he had (prior) discussion with Zarul in January 2011 over the project?

Hock Seng: He did not declare.

Wan Shaharuddin: Has Lim Guan Eng officially declared during an MMK (Penang state exco meeting) that he discussed with Zarul in early March 2011 regarding the project?

Hock Seng: He did not declare he met them (Zarul and Lee) but it was clear the project was raised at the MMK (in early 2011).

However, during cross-examination by lead defence counsel Gobind Singh Deo, Hock Seng conceded that it was normal to be asked to meet parties with proposals that are in line with the witness’s then exco portfolio.

Gobind: So the matter of being given the telephone number (to contact Zarul) is a normal occasion, hence the need to telephone?

Hock Seng: Yes.

Gobind: You agree that as an exco, there are many tasks that need to be done.

Hock Seng: Yes.

Gobind: So, therefore, telephone numbers are given (to Hock Seng) to contact them (Zarul and Lee), otherwise one cannot run a state (Penang).

Hock Seng: True.

Gobind: Then being given the direction to contact (Zarul and Lee) does not contain any cynical meaning.

Hock Seng: Yes.

The prosecution witness also conceded that the RFP (request for proposal) of the project involving Zarul had been carried out properly, and that there were no complaints on the corporate man’s role in meetings linked to the RFP.

In Malaysia, an RFP is an open request for bids to complete a new project proposed by the company or other organisation that issues it.

Towards the end of proceedings, Gobind informed the court that the defence will be filing an application for the recorded statement that Zarul gave to MACC during the anti-graft watchdog’s investigation into the undersea tunnel project.

The lawyer told the court that the defence will raise the application in the next trial sitting in order to facilitate their cross-examination of prosecution witnesses.

The trial before Azura will resume on Wednesday morning.

Bagan MP Guan Eng is facing four graft charges in the Sessions Court.

One charge, framed under Section 16(A)(a) and Section 23 of the MACC Act, accuses him of using his position as then Penang chief minister for the gratification of RM3.3 million as inducement for helping a company belonging to Zarul to secure the island state’s RM6.3 billion undersea tunnel project.

The offence was allegedly perpetrated at the Penang Chief Minister's Office, 28th Floor, Komtar, George Town, Penang, between January 2011 and August 2017.

Under Section 23(1) of the MACC Act, the offence is punishable with imprisonment of up to 20 years and a fine not less than five times the value of the gratification or RM10,000, whichever is higher.

The second charge, also under Section 16(A)(a), accused Guan Eng, in his capacity as the then Penang chief minister, to have solicited from Zarul bribes amounting to 10 percent of the profits to be earned by the company as gratification for helping secure the project.

The offence was allegedly committed near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City, Kuala Lumpur, between 12.30am and 2am in March 2011.

The charge, framed under Section 16 of the MACC Act, provides for imprisonment for up to 20 years and a fine of not less than five times the value of the gratification or RM10,000, whichever is higher.

The DAP secretary-general also faces two counts of causing two plots of land, worth RM208.8 million and belonging to the Penang government, to be disposed off to two companies allegedly linked to the undersea tunnel project.

The two charges, framed under Section 403 of the Penal Code, carry imprisonment of up to five years, whipping, and a fine.

The offences were allegedly committed at the Penang Land and Mines Office, Level 21, Komtar, between Feb 17, 2015, and March 22, 2017.