KUALA LUMPUR (Dec 17): The Sessions Court here on Friday (Dec 17) heard that former Penang chief minister Lim Guan Eng allegedly instigated the offer to solicit a 10% cut of the profits from the RM6.3 billion undersea tunnel project.
In Friday’s proceedings, Consortium Zenith BUCG Sdn Bhd (CZBUCG) senior executive director Datuk Zarul Ahmad Mohd Zulkifli — the 23rd prosecution witness — claimed that Guan Eng was the one to ask for the 10% profit cut.
This, he said, happened after he met Guan Eng at an Italian restaurant along Jalan Ampang, when he was sending the politician back to the Garden’s Hotel sometime in March 2011.
He had earlier been introduced to Guan Eng by former Minister in the Prime Minister’s Department, Datuk Seri Mohamed Nazri Aziz, at a hotel here back in January 2011.
Shocked conversation on a drive
In that introductory meeting with Guan Eng, in Nazri’s presence, Zarul said he took the opportunity to convey his and Beijing Urban Construction Group’s (BUCG) interest to take up a project in Penang.
“At this time, we exchanged phone numbers. Lim Guan Eng looked like he was interested in my offer,” he said in reply to questions from Deputy Public Prosecutor (DPP) Mahadi Jumaat.
Nazri also previously testified in November that he introduced Guan Eng to Zarul at a hotel, and that the three had subsequently met again at an Italian restaurant in March 2011.
Meanwhile, Zarul described that after the dinner at the Italian restaurant, Guan Eng asked him to drive him back to his hotel.
According to Zarul, during the drive, Guan Eng allegedly told him that if he could successfully execute a memorandum of understanding (MoU) between the Penang state government and BUCG, the undersea tunnel project would be awarded to CZBUCG, BUCG’s special purpose vehicle, by way of direct negotiation.
“After that, Lim Guan Eng asked me to give him 10% of the project’s profits later to him.
“Back then, I was quite shocked with the words that came out from Guan Eng, who I remember from all this time to be one who is strongly opposed to corruption.
“Afterwards, I agreed to the aforementioned offer. Guan Eng seemingly smiled after I said I agreed to give him 10% of the project’s profit and he informed me that officers [of the Penang state government] would help me with any information I needed for the project.”
The Bagan member of Parliament and Ayer Putih assemblyman has been charged for soliciting a 10% profit cut from Zarul’s company in return for helping it secure the undersea tunnel project. He was charged with committing the offence near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City here, in March 2011, between 12.30am and 2am.
Zarul further said that as a result of the March 2011 meeting, two MoUs were signed by both the BUCG and the Penang state government on March 17, 2011, and April 28, 2011.
Disappointed in Guan Eng’s U-turn
However, Zarul said Guan Eng, in early May 2011, went back on his word and called an open tender for the project.
“I was initially disappointed because Guan Eng had made a U-turn. But, he promised me he would help me in getting the award of the project by instructing his officers to give me full cooperation in this matter.
“Guan Eng also requested that the request for proposal (RFP) be expedited and requested that BUCG assist his officers and Lim Hock Seng in the preparation of the RFP,” he testified further.
Meanwhile, in his testimony earlier, Zarul admitted in court that he had previously been sentenced to one day’s jail after pleading guilty to an offence under the Banking and Financial Institution Act 1986.
He testified that following the 1997 financial crisis, he was declared a bankrupt in 2001 but a year later, he was cleared of that and began with other business endeavours including providing the e-court system.
Zarul also told the court that he had been arrested by the Malaysian Anti-Corruption Commission (MACC) in 2018, and remanded for several days in connection with the undersea tunnel project.
Defence calls for access to witness’ recorded statement
As Zarul was testifying, Guan Eng’s lawyer Gobind Singh Deo forwarded his application to the Sessions Court judge Azura Alwi for access to Zarul’s MACC recorded statement, pursuant to Section 51 of the Criminal Procedure Code (CPC).
“It was clearly stated that the witness (Zarul) had been arrested and interrogated by the MACC relating to the undersea tunnel project. We want to make an application for access to the relevant documents that were recorded from this witness during his interrogation.
“The court has the power to give an order relating to the documents. If the prosecution is willing to give it to the [defence], there is no need for a formal application,” he added.
Section 51 of the CPC stipulates that the court can order the production of any statements of a person who had been summoned by the investigating authorities.
In response, DPP Wan Shaharuddin Wan Ladin said Zarul was only reading his recorded statement and testifying before the court. He further said it would be more appropriate for Gobind to forward his application during his cross-examination.
Judge Azura concurred with the DPP's view and advised Gobind to wait until his cross-examination to make the application.
Besides having been charged for soliciting, Guan Eng is also facing two charges of dishonestly misappropriating property by releasing two plots of state-owned land to Ewein Zenith Sdn Bhd and Zenith Urban Development Sdn Bhd.
During Friday’s proceedings, Tan Sri Muhammad Shafee Abdullah was also present as watching brief for the next witness G Gnanaraja, a businessman who has also been linked to the undersea tunnel project.
Zarul will continue his testimony before Sessions Court Judge Azura Alwi on March 23.