Malaysia

CZBUCG got land as payment linked to undersea tunnel, Hock Seng tells Guan Eng’s graft trial

Former Penang exco says meeting where decision was taken, was chaired by DAP sec-gen

Updated 5 years ago · Published on 16 Jul 2021 8:39PM

CZBUCG got land as payment linked to undersea tunnel, Hock Seng tells Guan Eng’s graft trial
Lim Hock Seng told the sessions court today that based on preliminary agreements between the Penang government and CZBUCG, the firm had the right to name Ewein Zenith as the owner of lot 702 in Bandar Tg Pinang. – Lim Guan Eng Facebook, July 16, 2021

KUALA LUMPUR – The sessions court here was told today that the Penang executive committee had approved the award of a plot of land to Consortium Zenith BUCG Sdn Bhd (CZBUCG) as a form of payment for works done by the company in relation to the state’s undersea tunnel and main roads project.

Former exco Datuk Lim Hock Seng, 73, said a meeting chaired by then chief minister Lim Guan Eng on December 11, 2014, approved the award of lot 702 in Bandar Tg Pinang, North East District in Penang to the company.

Hock Seng said CZBUCG then assigned the lot to Ewein Zenith Sdn Bhd owned by one Datuk Ewe, and that piece of land was developed with a mega-project known as City of Dreams.

Hock Seng said based on the preliminary agreement signed between the state government and CZBUCG, the company had the right to name Ewein Zenith as the owner of that plot of land, which was given as a form of payment for works implemented by CZBUCG.

The third prosecution witness said this during examination-in-chief by deputy public prosecutor Wan Shaharuddin Wan Ladin on the fourth day of Guan Eng’s trial on four corruption charges involving the proposed undersea tunnel linking the mainland and Penang island and construction of paired roads in the state.

Wan Shaharuddin: Datuk, have you heard of City of Dreams, Penang? Is it a building built on lot 702?

Hock Seng: Yes, correct.

When asked about the building, Hock Seng said he did not know how tall the building is but he knows it is a twin block.

Wan Shaharuddin: Datuk, lot 702 is situated on reclaimed land?

Hock Seng: Yes.

Asked on the RM75,000 fee paid to Lee Hishamuddin Allen & Glendhill for preparation of the preliminary agreement between the state government and CZBUCG, the witness said the state government did not use the services of the state legal advisor because the agreement needed to be drafted fast.

Wan Shaharuddin: If the state legal advisor had been involved in preparing the preliminary agreement, the state government would have saved RM75,000?

Hock Seng: Yes, correct, that amount could have been saved but it would have taken quite a long time for the preliminary agreement to be drawn up.

Under the first amended charge, Guan Eng, 60, is accused of using his position as chief minister to corruptly receive RM3.3 million to help the company owned by Datuk Zarul Ahmad Mohd Zulkifli to be appointed to implement the undersea tunnel and main roads project worth RM6,341,383,702.

Lim allegedly committed the offence between January 2011 and August 2017 at the Penang chief minister’s office.

On the second amended charge, Guan Eng is alleged to have solicited for 10% of the profits that would be made from Zarul, as an inducement to help his company get appointed for the same project.

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

The Bagan MP is also facing two charges of causing two lots of state government land worth RM208.8 million to be alienated to the developer in relation to the undersea tunnel project.

The offences were allegedly committed at the Penang Land and Mines Office at Komtar on February 17, 2015 and March 22, 2017.

Guan Eng was represented by lawyer Gobind Singh Deo.

The trial before Judge Azura Alwi will continue next month. – Bernama, July 16, 2021

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