MoU did not say Penang road, tunnel project was open tender: Hock Seng

KUALA LUMPUR – The sessions court here was told today that former Penang chief minister Lim Guan Eng had informed the state government council meeting that the state’s major road and undersea tunnel project was awarded through open tender.

Former Penang state executive councillor Datuk Lim Hock Seng, 73, said that during the meeting on April 27, 2011, there was a note stating that Guan Eng had said there was an open tender with regard to the project before he left for China.

However, Hock Seng said the two memoranda of understanding (MoU) signed between the state government and Beijing Urban Construction Group Sdn Bhd (BUCG) around 2011 did not state that the project was made via open tender.

According to Hock Seng, after the MoUs were signed, the project was given to Consortium Zenith Bejing Urban Construction Group Sdn Bhd (CZBUCG), a joint venture company with BUCG.

He said this during reexamination by deputy public prosecutor Wan Shaharuddin Wan Ladin on the sixth day of Guan Eng’s corruption case. 

Guan Eng is facing four charges relating to the undersea tunnel and major road construction project in the state. 

The third prosecution witness said that he then met Datuk Zarul Ahmad Mohd Zulkifli, who was then the CZBUCG managing director, and informed the council of their meeting.

“The state council meeting, which was chaired by Guan Eng, later instructed that a working paper on the proposed project for the undersea tunnel and major roads in the state be tabled for consideration,” he said.

Earlier, in his witness statement, Hock Seng told the court that the prequalification advertisement on the state government’s website for the project tender was made on November 11, 2011, while the advertisement in local newspapers was made on November 15, 2011.

Hock Seng said eight companies met the prequalification requirements, namely China State Construction Engineering Corporation Ltd & VST Cemerlang Sdn Bhd, Setia Precast Sdn Bhd, ECK Construction Sdn Bhd, Gamuda  Berhad, Zambina Wawasan Sdn Bhd, IJM-CRGL Joint Ventures, Consortium Zenith BUCG Juteras & Sri Tinggi JV, and WCT Daewoo Joint Ventures. 

However, CZBUCG was appointed to build major roads and the undersea tunnel in Penang as the company received the highest marks for the overall technical and financial assessment.

According to the first amended charge, Guan Eng, 60, is charged with using his position as then-Penang chief minister to obtain a bribe of RM3.3 million for helping a company owned by Zarul to secure the construction project worth RM6,341,383,702.

The offence was allegedly committed between January 2011 and August 2017 at the Penang Chief Minister’s Office.

On the second amended charge, Guan Eng is accused of soliciting bribes amounting to 10% of the profits from Zarul to be earned by the company as gratification for helping Zarul’s company secure the project.

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

The Bagan MP also faces two charges with causing two plots of land worth RM208.8 million, belonging to the Penang government, to be disposed of to two companies linked to the state’s undersea tunnel project.

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

The trial before judge Azura Alwi continues tomorrow. – Bernama, August 19, 2021