KUALA LUMPUR (Jan 16): Ewein Bhd has come out to say that the group is not involved in any form in the controversial RM6.3 billion Penang undersea tunnel project.

In a statement today, Ewein said the group, via its subsidiary Ewein Land Sdn Bhd, had merely entered into a joint venture (JV) with Consortium Zenith Construction Sdn Bhd in 2013 to develop a 3.67-acre piece of land at Bandar Tanjong Pinang, Penang, valued at RM133 million.

Ewein also refuted allegations that it had acquired the land from the Penang state government.

"The land is being developed jointly in a commercial transaction between Ewein Land and Consortium Zenith via a JV vehicle Ewein Zenith Sdn Bhd, and was supported by a valuation report which was submitted to Bursa Securities.

"The details of the JV were announced to Bursa and is public information," it said.

Ewein Zenith is 73% owned by Ewein, while the remaining 27% is owned by Consortium Zenith.

Ewein clarified that through its 60%-owned subsidiary Ewein Zenith II Sdn Bhd, it had also entered into another agreement to acquire a 4.4-acre plot at Bandar Tanjong Pinang for RM162 million in 2015.

"Again, the land was to be acquired from Consortium Zenith and not from the Penang government. This was a commercial transaction between Ewein Zenith II and Consortium Zenith, and the details of the intended acquisition were announced to Bursa and is publicly available information," it added.

Ewein noted that however, Ewein Zenith II had decided to terminate the agreement as the size of the land, which was ultimately alienated by the state to Consortium Zenith, was smaller at two acres instead of the 4.4 acres which was agreed pursuant to the sales and purchase agreement. The termination was also announced to Bursa.

On the memorandum of agreement signed between Ewein Zenith and Consortium Zenith to acquire the rights to purchase 50 acres of to-be-reclaimed land at Gurney Drive in 2016, Ewein said the piece of land is part of a reclamation project undertaken by a company not connected to Ewein or any of its subsidiaries.

"(The land) is still under the sea as the reclamation work is in progress and ongoing," it said.

On the current remand of its group managing director Datuk Ewe Swee Kheng to assist in the Malaysian Anti-Corruption Commission's investigation into the Penang undersea tunnel project, Ewein said the probe was based on a complaint lodged by "a particular person" recently.

"We stand by our group managing director unequivocally in this situation and we endeavour to assist in the investigation as best we can to ensure a swift conclusion to this matter," it added.

Ewein's share price declined by one sen or 2.33% to close at 42 sen today, giving it a market capitalisation of RM126.67 million.