Lim Guan Eng arrives at the Kuala Lumpur High Court March 24, 2022. – Picture by Shafwan Zaidon
KUALA LUMPUR, March 24 — A key prosecution witness in the corruption trial of Lim Guan Eng recounted today that former Penang chief minister seemed “ecstatic” upon learning that the high-ranking government officials in both Malaysia and China would attend the signing ceremony for the RM6.3 billion Penang undersea tunnel project back in 2011.
Consortium Zenith Beijing Urban Construction Group (CZBUCG) managing director Datuk Zarul Ahmad Mohd Zulkifli told the Sessions Court today that the ceremony took place in Malaysia’s administrative capital of Putrajaya on April 28, 2011.
Among the guests of honour were then Malaysian prime minister Datuk Seri Najib Razak and China’s former premier Wen Jiabao who were both witnesses to the signing of the Memorandum of Understanding (MoU).
“YB Lim seemed delighted over the phone when he was informed of it because the MoU was to be signed in the presence of two prominent state leaders at the time.
“I can’t remember the exact words but I am sure he was extremely elated. He said this will make certain people turn red-eyed,” Zarul Ahmad said.
He was then asked to clarify the term red-eyed, and explained that it was a Chinese metaphor often used to describe envy — similar to the English phrase “green-eyed”.
He added that he thought Guan Eng might have referred to MCA leaders when questioned further. The ethnic Chinese party is a component of the Barisan Nasional (BN) coalition and regarded as a political arch nemesis to Lim’s party, the DAP.
In his earlier testimony, Zarul Ahmad explained his role in facilitating the meeting between the Chinese and Malaysian representatives for the MoU to be signed ahead of Wen’s official state visit to Malaysia in 2011.
Zarul Ahmad previously testified in court that it was Guan Eng who suggested that an arrangement be made for Wen to witness the MoU signing between BUCG and the Penang government.
The MoU document explicitly states BUCG’s interest in the designing and construction tasks of three road works which includes a 6.5km undersea tunnel project.
Consortium Zenith BUCG Sdn Bhd director Datuk Zarul Ahmad Mohd Zulkifli arrives at the Kuala Lumpur High Court March 24, 2022. – Picture by Shafwan Zaidon
CZBUCG had an advantage over others in undersea tunnel project, witness affirms
Following the MoU signing in April 2011, Zarul Ahmad said there were several bidders including established companies such as Malaysian Resources Corporation Berhad (MRCB) and IJM Corporation Berhad who showed interest in the megaproject, yet only a handful managed to pass the Pre-Qualification (Pre-Q) stage.
Pre-Q is an information gathering and assessment process that determines a contractor’s capability, capacity, resources, management processes, and performance.
“Although I have obtained much information on the project and thus having a head start through my meetings with YB Lim Hock Seng including my personal involvement in the Request for Proposal (RFP) preparation, it was still undetermined if my company would succeed in winning the tender,” Zarul Ahmad said.
Hock Seng — the Penang state executive councillor in charge of public works, utilities and transportation back then — previously testified that he received instructions from Guan Eng to contact Zarul Ahmad concerning a proposal for the construction of an undersea tunnel on January 26, 2011.
“I was made to understand that only two companies prepared a very comprehensive tender, that is CZBUCG and VST Sdn Bhd.
“This is because I possessed pre-tender information where several meetings on the RFP preparations were held that saw the exchange of many inputs from both BUCG and the Penang state government for the eventual completion of the RFP,” Zarul Ahmad told the court today.
According to Zarul Ahmad, the information pertaining to the preparation of the RFP for the state government was obtained in 2011 before its eventual disclosure to other bidders at least a year later.
“All of this early information I have obtained for myself and my company to fulfil the formal requirements of the RFP which was only made known to other bidders in July 2012,” he added.
The mega project was subsequently awarded to Zarul Ahmad’s company, CZBUCG in January 2013. The Penang government subsequently issued a Letter of Intent on February 6, 2013.
Guan Eng is facing an amended charge of using his position as Penang chief minister back then to receive a bribe of RM3.3 million in helping the company owned by Zarul Ahmad to obtain a construction project worth RM6,341,383,702.
The offence was allegedly committed at the Penang Chief Minister’s Office on the 28th floor of Komtar, George Town between January 2011 and August 2017.
For the second amended charge, Guan Eng is alleged to solicit from Zarul Ahmad, 10 per cent of the profit to be gained by the company in appreciation of obtaining the project.
Guan Eng is accused of committing this offence near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City in Kuala Lumpur, in March 2011.
The DAP politician who is both Bagan MP and Air Putih assemblyman is also facing two other charges of causing two plots of land worth RM208.8 million belonging to the Penang government to be disposed of to two companies claimed to be connected to the undersea tunnel project.
He is charged with committing the offences at the Penang Land and Mines Department on the 21st floor of Komtar on February 17, 2015 and March 22, 2017.