Malaysia

BUCG party to meetings it shouldn’t have been, witness tells Guan Eng’s graft trial

But senior aide to current Penang CM says Bagan MP wasn’t in attendance at any of them

Updated 5 years ago · Published on 20 Aug 2021 11:59PM

BUCG party to meetings it shouldn’t have been, witness tells Guan Eng’s graft trial

KUALA LUMPUR – The sessions court was told today that Beijing Urban Construction Group Sdn Bhd (BUCG) should not be involved in meetings or discussions for the preparation of request for proposal (RFP) documents if the main road and tunnel construction project in Penang is offered through open tender.

Senior private secretary to Penang Chief Minister Chow Kon Yeow, Muhamad Azrai Mohamad Zaini, 39, said he was of the view that BUCG’s involvement in the early stages of preparing the RFP documents before the tender offer was advertised would give the company an advantage over other companies. 

“I know that this project will be awarded by the state government through open tender. I also know that BUCG representative Datuk Zarul Ahmad Mohd Zulkifli was present to assist the state Economic Planning Unit in preparing the RFP documents.

If (the project was offered) via open tender, BUCG should not be present at the meeting or discussion for the preparation of the RFP document. This is because, BUCG should not be involved in any process of preparing the RFP documents.

“I know there are amendments made to the RFP document draft that give BUCG an advantage to know about the scope of work of each project, the estimated cost, qualifications set for tender bidders, technical and financial conditions, earlier than other bidding companies before the RFP is advertised,” said the fourth prosecution witness.

He said this when reading out his witness statement on the seventh day of former Penang chief minister Lim Guan Eng’s corruption trial on four charges involving the construction of an undersea tunnel and paired roads project in Penang.

The project was awarded to Consortium Zenith Bejing Urban Construction Group Sdn Bhd (CZBUCG), which is a joint venture company with BUCG.

Asked by deputy public prosecutor Wan Shaharuddin Wan Ladin, whether there was any conflict of interest when BUCG also involved in the preparation of the RFP documents, Azrai replied: “I think there will be conflict of interest when a company that is involved in preparing the RFP documents also bids for the project.”

Azrai who previously held the position of assistant director (works, utilities & transport) at Penang’s Economic Planning Unit from 2010 to 2016 said he received instructions from Datuk Lim Hock Seng, the then works exco to call the parties involved to attend the meeting on July 11, 2011.

It was the third discussion between the Penang government’s representatives and BUCG representatives regarding the preparation of RFP documents for the three main road and tunnel construction projects.”

Asked why he did not report this involvement of BUCG in the meetings with his superior, Azrai said: “I was still a junior officer at that time and I assumed that everything I did was under the knowledge of my immediate bosses and therefore I felt that there was no need for me to report about BUCG’s involvement in the meetings.”

Azrai also said that BUCG had appointed consultants from China and Malaysia to conduct a study on the project and during a meeting on May 10, BUCG said there were difficulties in carrying out the project, but the state the government decided to proceed with the project anyway.

Meanwhile, when cross-examined by Lim’s lawyer Gobind Singh Deo about whether he agreed that the former Penang chief minister was not involved in the three meetings, as they were conducted by the state executive council members and experts from the state government, Azrai replied in the affirmative.

According to the first amended charge, Lim, 60, is charged with using his position as the 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, Lim is accused of soliciting bribes amounting to 10% of the profits from Zarul to be earned by the company as gratification for helping his (Zarul) company to secure the project.

The offence was allegedly committed near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City, here, 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, which are 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 on September 10. – Bernama, August 20, 2021

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