Malaysia

Guan Eng allegedly received RM2 million in black bags, court hears

Businessman claims delivery of two bags containing RM1 million each from CZCSB director to former Penang CM amid tunnel project graft trial

Updated 11 months ago · Published on 27 Aug 2025 5:34PM

Guan Eng allegedly received RM2 million in black bags, court hears
On the night of 28 August 2017, Gnanaraja retrieved another RM1 million bag from his office and placed it in a black Bentley - August 27, 2025

A KEY prosecution witness in the ongoing sea‑tunnel corruption case involving former Penang Chief Minister Lim Guan Eng told the Kuala Lumpur Sessions Court today that he personally handed over two black bags containing a total of RM2 million to the former minister.

The witness, Datuk Seri G Gnanaraja, said he received two black bags—each holding RM1 million—from Datuk Zarul Ahmad Mohd Zulkifli, then director of Consortium Zenith Construction Sdn Bhd (CZCSB), during a meeting at Hotel Eastin Petaling Jaya on 18 August 2017. He stored the bags in his office before delivering one to Lim Guan Eng at Publika, Hartamas, on 20 August 2017.

“After I received two black bags with RM1 million each, I stored them in my office. I took one out on 20 August 2017 to hand over to Lim while driving him to Publika. Guan Eng took the bag and then patted Zarul Ahmad on the shoulder, whom he thanked for the RM1 million bag,” Gnanaraja recounted during his testimony.

He added that on the night of 28 August 2017, in response to a text from Zarul Ahmad, he retrieved the other RM1 million bag from his office and placed it in his black Bentley. In the early hours of 29 August, Lim Guan Eng reportedly visited his home to receive the bag.

“Guan Eng came to my house around two to three in the morning, I handed him the bag after retrieving it from my car’s boot. He received it with his right hand, smiling, placed it onto his lap and then left with Zarul Ahmad seated alongside in the vehicle. I do not know their subsequent destination,” he testified.

Gnanaraja revealed that prior to handing over the second bag, he, Lim, and Zarul Ahmad engaged in a confidential discussion at his home concerning the tunnel project's financial arrangements—including Guan Eng’s claim to a 10 per cent cut from the estimated RM6.3 billion contract.

“In my understanding, the tunnel project's value is estimated at RM6.3 billion. Guan Eng mentioned that 10 per cent of the project profits—amounting to that sum—was intended for himself. He also said Zarul Ahmad agreed to this request,” Gnanaraja added.

Lim Guan Eng, 64, faces multiple amended charges alleging that, as Chief Minister, he abused his position to procure illicit gains. These include receiving RM3.3 million to assist CZCSB’s appointment for the major infrastructure project and soliciting a 10 per cent kickback. Additional charges involve the disposal of Penang state land valued at RM208.8 million.

The trial before Judge Azura Alwi is set to resume tomorrow. - August 27, 2025

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