MOU didn't say Penang tunnel would be open tender - witness

The Kuala Lumpur Sessions Court was told that the memorandum of understanding (MOU) related to the project involving constructing main roads and an undersea tunnel in Penang did not state it would be carried out via open tender.

Former director of Consortium Zenith Construction Sdn Bhd (CZCSB) Zarul Ahmad Mohd Zulkifli said, however, that in May 2011, he was informed by Lim Guan Eng that the project would be implemented through open tender.

“Indeed, the MOU did not mention open tender, but three meetings we attended with the state government indicated that the open tender was staged for us to win the project, as the request for proposal (RFP) documents were prepared with us, giving us an advantage.

“When the RFP was opened to other bidders, they were only given a short time to prepare their submissions,” he said during re-examination by deputy public prosecutor Mahadi Jumaat.

Zarul, 66, was speaking during the corruption trial of former Penang chief minister Lim, who is facing four charges related to the project.

The 27th prosecution witness said that based on the state government’s visit to Consortium Zenith Beijing Urban Construction Group Sdn Bhd (CZBUCG) in China, the three meetings, and the signing of the MOU, it showed that the project was awarded to his company via direct negotiation.

He said that as early as 2011, they were already informed about the project and were among the parties involved in preparing the RFP, in addition to having insider information.

“The trip to China was also made by Penang state executive councillors, and it was only to CZBUCG, not to any other Chinese company that participated in the tender. So, I say the appointment of CZBUCG for the project was orchestrated,” he said.

Zarul also revealed that he received RM79 million from the sale of land known as “Lot 702”, part of which he cashed out and stored in a safe in his office.

“I kept part of the money in the safe to be used in case of emergencies, and considering that the general election was approaching. I intended to make contributions to those I supported,” he said.

When asked by Mahadi whether there was still money in the safe when officers from the MACC and Inland Revenue Board went to the office, Zarul replied, “Yes, they came not to conduct a search, but only to collect documents.”

‘Instructed by Lim’

Zarul also said Lim instructed him to hold a press conference stating that his company was not involved in corruption related to the project, in order to clear the name of the former Penang chief minister and the company.

“I was instructed by Lim to hold a press conference to clear the name of the company, his name, and my name, as they were being attacked by the previous government before Pakatan Harapan, so I followed the order.

“MACC never threatened me; since I was one of the last individuals called to give a statement, I had no choice but to reveal the truth after the agency presented me with solid investigation findings,” he said.

According to the first amended charge, Lim, 64, is accused, in his capacity as Penang chief minister at the time, of using his position to solicit a RM3.3 million bribe by assisting Zarul’s company to be appointed for the RM6.3 billion Major Roads and Undersea Tunnel Construction Project between January 2011 and August 2017 at the Penang Chief Minister’s Office.

In the second amended charge, Lim is alleged to have requested a bribe of 10 percent of the profits from Zarul as a reward for helping his company secure the same project, near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City, Kuala Lumpur, between 12.30am and 2am in March 2011.

He also faces two charges of causing the disposal of two pieces of state land in Penang worth RM208.8 million to a developer related to the undersea tunnel project, allegedly committed at the Penang Land and Mines Office in Komtar on Feb 17, 2015, and March 22, 2017.

The trial before Judge Azura Alwi resumes on May 27.

- Bernama

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