Malaysia

MACC IO agrees Penang legal adviser, State Secretary were consulted on tunnel project

The investigating officer agrees that Penang’s state legal adviser and state secretary were consulted before the MOUs for the Penang undersea tunnel and three major roads project were signed in 2011

Updated 1 month ago · Published on 07 Aug 2026 3:01PM

MACC IO agrees Penang legal adviser, State Secretary were consulted on tunnel project
Lim Guan Eng sought legal clearance before Penang tunnel project proceeded including guidance on land rights, underground works and compliance with the National Land Code - August 7, 2026

A MACC investigating officer has told the Sessions Court in Kuala Lumpur that Lim Guan Eng received legal briefings before the implementation of the Penang undersea tunnel and three major roads project, including advice on whether the multibillion-ringgit development complied with legal requirements.

MACC senior officer Zulhilmi Ramli, 34, agreed that Lim, who was Penang chief minister at the time, had sought the views of then state legal adviser Datuk Faiza Zulkifli during state executive council (Exco) meetings in 2011.

During cross-examination by senior defence counsel Ramkarpal Singh, who is representing Lim, the witness agreed that the former chief minister had sought legal advice to determine whether the project could proceed lawfully.

Ramkarpal: "The accused sought legal advice on whether the project would breach landowners’ rights, involve underground issues or contravene the National Land Code."

Zulhilmi: "Agreed."

Ramkarpal: "All these matters were acted upon by the state legal adviser?"

Zulhilmi: "Correct."

According to MalaysiaGazzette, however, Zulhilmi said he was unsure when asked whether Lim had sought advice from the state secretary during the meeting on the next steps required for the project.

Ramkarpal: "Do you agree that procedurally, he (Lim) sought advice from the state secretary during the meeting to determine the next course of action?"

Zulhilmi: "I am not sure."

Zulhilmi was testifying as the 38th prosecution witness in Lim’s corruption trial involving allegations linked to a RM3.3 million gratification case connected to the Penang undersea tunnel project.

The witness also agreed that discussions concerning land-related matters were recorded in the Exco meeting minutes and that the state legal adviser had acted based on directions from the Exco.

He further testified that the project was required to undergo the pre-qualification (Pre-Q) and request for proposal (RFP) processes after two memoranda of understanding (MOUs) were signed on March 17 and March 23, 2011.

Zulhilmi also agreed that a committee had been established to evaluate the Pre-Q and RFP processes.

The trial before Sessions Court Judge Azura Alwi will resume on Sept 10.

Lim, 65, who is the Bagan Member of Parliament and Ayer Putih assemblyman, is accused of using his position as Penang chief minister to obtain gratification amounting to RM3.3 million.

The charge alleges that he had assisted a company owned by former Consortium Zenith Construction Sdn Bhd director Datuk Zarul Ahmad Mohd Zulkifli in securing the RM6.34 billion project to construct the undersea tunnel and three major roads in Penang between January 2011 and August 2017.

Lim is also accused of soliciting a 10 per cent share of future profits from Zarul Ahmad as an inducement for helping the company secure the project.

The alleged request was said to have taken place during a meeting near The Gardens, Lingkaran Syed Putra, Mid Valley City, Kuala Lumpur, between midnight and 2am in March 2011.

He further faces two charges of causing two Penang state-owned land parcels, valued at RM208.8 million, to be disposed of to property companies linked to the undersea tunnel project.

The alleged offences involving the land transfers were said to have occurred at the Penang State Land and Mines Office at Komtar on Feb 17, 2015 and March 22, 2017. - August 7, 2026

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