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MACC Officer Testifies on Penang Land Loss in Tunnel Project

Kuala lumpur: The Sessions Court was today informed that the Penang government incurred a loss after transferring a parcel of state land to a developer as payment for the feasibility study of the RM6.3 billion Penang undersea tunnel and roads project.

According to BERNAMA News Agency, Malaysian Anti-Corruption Commission (MACC) Investigation Division Senior Superintendent Zulhilmi Ramli, 34, stated that the payment was executed to resolve a RM135 million claim by transferring state-owned Lot 702 to Consortium Zenith Beijing Urban Construction Group (CZBUCG). Zulhilmi, serving as the 38th prosecution witness, made these remarks during cross-examination by defence counsel Mohd Haijan Omar, who represents former Penang Chief Minister Lim Guan Eng in his corruption trial.

During the cross-examination, Mohd Haijan inquired about the final amount claimed by CZBUCG under the land swap involving Lot 702, to which Zulhilmi confirmed it amounted to RM138 million. Although CZBUCG's final claim was RM138 million, it was established that Lot 702's valuation was only RM135 million. Mohd Haijan queried if the state had settled the payment for CZBUCG's work through the transfer of Lot 702 valued at RM135 million, to which Zulhilmi affirmed.

Counsel Mohd Haijan suggested that since work had been conducted and certified by independent technical consultant HSSI Integrated Sdn Bhd, and Lot 702 was used as payment, the state government had not suffered any loss through the land transfer. However, Zulhilmi disagreed with this assertion.

Lim, 65, faces charges of using his position as Penang Chief Minister to gain a gratification of RM3.3 million by allegedly assisting a company owned by former Consortium Zenith Construction Sdn Bhd director Datuk Zarul Ahmad Mohd Zulkifli in securing the RM6.341 billion Penang major roads and undersea tunnel project from January 2011 to August 2017. He also faces a charge of soliciting 10 per cent of the profits anticipated to be earned by Zarul Ahmad as inducement for aiding the company in securing the project.

The alleged offence was committed near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City, between 12.30 a.m. and 2.00 a.m. in March 2011. Additionally, Lim is charged with causing the disposal of two plots of Penang government land, valued at RM208.8 million, to developer companies associated with the undersea tunnel project. These offences purportedly occurred at the Penang State Land and Mines Office in Komtar on February 17, 2015, and March 22, 2017.

The trial, presided over by Judge Azura Alwi, is set to continue on August 3.

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