KUALA LUMPUR, 15 JULY: While Consortium Zenith BUCG Sdn Bhd was granted the Penang undersea tunnel project through an open tender in 2013, the Sessions Court heard today that a component business of the consortium had lobbied for the project earlier by establishing a memorandum of understanding (MoU) with the state in 2011. Zenith Construction Sdn Bhd and China Railway Construction Ltd formed the consortium Zenith BUCG, which also included Beijing Urban Construction Group (BUCG), Sri Tinggi Sdn Bhd, and Juteras Sdn Bhd.
Datuk Lim Hock Seng, a former Penang executive councillor, testified today that the Penang Tender Committee selected Consortium Zenith BUCG as the developer for the multibillion-ringgit project to build various roads in Penang, including an undersea tunnel, in 2013 because the consortium received the highest marks for the overall technical and financial assessment.
“After then, the topic was brought before the state executive council for approval.” “I confirm that YB Datuk Seri State Secretary (SUK) communicated this decision to the state council on January 30, 2013.” The presentation was made in order to consider hiring Consortium Zenith BUCG to oversee the construction of three main roads and a tunnel. As the third prosecution witness in former Penang chief minister Lim Guan Eng’s fraud trial in connection with the tunnel project, he claimed, “The Technical and Finance Committee concurred with the Secretariat’s recommendation that the consortium received the highest scores.”
Hock Seng, on the other hand, said in court yesterday that the state had previously signed an MoU with China’s BUCG in 2011 for the building of an undersea tunnel and three road expansion packages. In reality, then-Prime Minister Datuk Seri Najib Razak and his Chinese counterpart, Wen Jiabao, were present for the signing of the MoU.
A 4.2-kilometer bypass from Gurney Drive to Lebuhraya Tun Dr Lim Chong Eu, a 4.6-kilometer bypass between Lebuhraya Tun Dr Lim Chong Eu and Bandar Baru Air Itam, a 12-kilometer paired road from Jalan Tanjung Bungah to Teluk Bahang, and the 6.5-kilometer Penang-Butterworth sea tunnel were among the four projects.
According to Hock Seng, on November 29 and December 14, 2011, two tender briefings were held, both of which he attended.
According to him, 60 local and international companies filed pre-qualification exercises to be considered for the tender briefing.
Then, China State Construction Engineering Corp Ltd & VST Cemerlang Sdn Bhd, Setia Precast Sdn Bhd, ECK Construction Sdn Bhd, Gamuda Bhd, Zambina Wawasan Sdn Bhd, IJM-CRGL Joint Ventures, Consortium Zenith BUCG Juteras & Sri Tinggi JV, and WCTDaewoo Joint Ventures were found to be eligible to participate in the request for proposal (
Following that, Hock Seng stated that Guan Eng advocated forming two independent committees to assess the RFP, namely technical and financial, which was later approved by the state exco members.
According to the results of both committees’ evaluations, Consortium Zenith BUCG was chosen as the developer for the multibillion-ringgit project.
Guan Eng is charged with four counts in this case, the first two of which are under the MACC Act 2009 and the other two under the Penal Code.
Guan Eng is accused of exploiting his position as the then-chief minister to seek remuneration in exchange for assisting Consortium Zenith BUCG in securing the tunnel project. He is accused of asking Zenith Construction Sdn Bhd senior executive director Datuk Zarul Ahmad Mohd Zulkifli for a 10% share of the company’s profit.
Guan Eng is accused of using his position as the then-chief minister to earn RM3.3 million in gratification as an enticement for helping the business get the RM6.3 billion project, according to the second accusation read to him before the Butterworth Sessions Court.
Guan Eng is accused of causing two pieces of land belonging to the Penang government worth RM208.8 million to be sold to two firms connected to the tunnel project for the third and fourth accusations.
All four allegations against Guan Eng have been dismissed. The trial of Azura Alwi, a Sessions Court judge, will resume tomorrow./n
