I was shocked Guan Eng asked for 10pct in tunnel project - witness

Consortium Zenith Construction Sdn Bhd senior executive director Zarul Ahmad Mohd Zulkifli testified he was “shocked” when Lim Guan Eng allegedly asked for 10 percent future profit from the Penang Undersea Tunnel project.

During today’s corruption trial against former Penang chief minister Lim in relation to the project, 22nd prosecution witness Zarul (above) claimed that the accused asked for this from him while they both were in a car in Kuala Lumpur on a night in March 2011.

Zarul claimed earlier that night, he gave an agreement to Lim in relation to the holding of an MOU (memorandum of understanding) event, in order that the accused would grant the undersea tunnel project to his company via direct negotiation.

The witness alleged that between 8pm and 9pm on that night, he had met Lim at an Italian restaurant on Jalan Ampang, with then de facto law minister Nazri Abdul Aziz. Zarul claimed that nothing about the undersea tunnel project was discussed and that the trio only had casual chats.

He said that around 11.45pm, Lim asked to be taken back to where he was staying,  at Hotel Gardens at Midvalley, Kuala Lumpur. 

The witness claimed that while in the car, Lim supposedly asked him for 10 percent future profit on the island state’s RM6.3 billion project.

Consortium Zenith Construction is the main contractor for the undersea tunnel project.

“After that, Lim had asked me to give 10 percent of the project’s future profits to him.

“At the time, I was quite shocked because the matter came from Lim’s mouth, and I thought about the request because I did not expect it would come from Lim’s mouth whom I thought all this while was a person who was against corruption.

“What I understand, 10 percent refers to corruption money of 10 percent from company profits that I needed to give to Lim when I was granted the project.

“Then I agreed with the request. Lim appeared to be smiling after I said I agreed to give 10 percent of the project’s profits, and Lim then said either he or his officers will extend assistance in giving to me any information needed for the project,” Zarul claimed.

The ongoing trial before the Kuala Lumpur Sessions Court concerned the four graft charges against Lim, who is also the Air Putih assemblyperson.

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 at Komtar in 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 of 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), states that Lim, in his capacity as the then Penang chief minister, have solicited from Zarul bribes amounting to 10 percent of the profits to be earned by the company as gratification for helping the company 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 Bagan MP also faces two counts of causing two plots of land, worth RM208.8 million and belonging to the Penang government, to be disposed of 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.

'Disappointed Lim did the U-turn'

During open-court proceedings before trial judge Azura Alwi, Zarul testified that when he met Lim in May 2011, the then Penang chief minister allegedly went back on the purported promise to award the project to BUCG.

BUCG here refers to Consortium Zenith BUCG, the joint venture between Zenith Construction Sdn Bhd and China Railway Construction Limited set up to handle the undersea tunnel project.

“In early May 2011, I met Lim to claim his promise to award (the project) to BUCG via direct nego. However, Lim said that he was forced to call an open tender for the project.

“I was disappointed because Lim did the U-turn. However, he promised me that he would help me to be awarded the project by directing his officers to give full cooperation to me over this matter,” Zarul claimed.

The witness also testified that Lim asked for the RFP (request for proposal) to be expedited and asked BUCG to help his (Lim) officers to prepare the RFP.

Later during the proceedings today, the accused’s counsel Gobind Singh Deo applied for the defence team to be given the statements that Zarul gave to MACC during the investigation three years ago.

Gobind claimed that the witness’ current testimony today contradicted what he allegedly gave to MACC.

Deputy public prosecutor Wan Shaharuddin Wan Ladin then told the court that the witness ought to be allowed to finish reading his witness statement first before hearing the defence’s application for the MACC statement.

Azura then directed Zarul to finish reading his 99-page witness statement first before she would hear the application.

The trial will resume on March 23 next year.

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