Penang Would Not Lose Lots 702, 703 If No Early "Dealing" Between Lim, Two Businessmen - Investigating Officer

KUALA LUMPUR, Oct 15  (Bernama) -- The Sessions Court was today told that two lots of land in Bandar Tanjung Pinang, Penang,  would not have been wrongfully transferred and led to significant losses to the state government if there had been no early 'dealing' between Lim Guan Eng and two businessmen.

 Malaysian Anti-Corruption Commission (MACC) Senior Superintendent of the Investigation Division,  Zulhilmi Ramli, named the two businessmen as Ewein Zenith Sdn Bhd (EZSB) managing director, Datuk Ewe Swee Kheng, and Consortium Zenith Construction Sdn Bhd (CZCSB) director, Datuk Zarul Ahmad Mohd Zulkifli.

Zulhilmi, who is also the investigating officer, said that based on his investigation, Ewe met the former Penang Chief Minister in 2011 to inquire about government lands that could be explored.

"The accused (Lim) informed Ewe that he would be looking for a state project where the method of payment to the project contractor would be through land exchange. All Ewe had to do was deal with the contractor to sell the land to Ewe's company. 

“This is what happened in this case, where Lot 702 was indeed acquired by Ewe.

"Regarding the payment for the sale of Lot 702, investigations found that CZCSB sold the land to EZSB at the agreed sale price of RM133 million," he said when reading out his witness statement in the Penang undersea tunnel corruption trial involving the former Penang chief minister.

Zulhilmi, who is the 38th prosecution witness, said that according to the sale and purchase agreement, EZSB had to make an upfront payment of 60 per cent (RM79.8 million) to CZCSB, and the remaining 40 per cent (RM53.2 million) to be paid after the completion of the development of the City of Dream (COD) at the site.

According to Zulhilmi, if there had not been a prior 'dealing' between Ewe, Zarul Ahmad and Lim, the land at lots 702 and 713 would not have been transferred to Ewe, and the Penang government would not have suffered losses.

"It is also quite strange that Ewe dared to make the payment early,  which was as early as November 2013 to Zarul Ahmad's company, even though there was no certainty that Zarul Ahmad's company would get the Lot 702 piece of land," he said.

He also told the court that a preliminary agreement was signed on Oct 6, 2013, for the project to construct three main roads and a tunnel in Penang between the state government, represented by Lim, and Zarul Ahmad, who is also the Chairman of Consortium Zenith Beijing Urban Construction Group Sdn Bhd (CZBUCG).

"CZBUCG also agreed to appoint a company to carry out a study on the project and subsequently the construction of three main roads and tunnels in Penang.

“In the initial agreement, the project began with a feasibility study, worth RM305.88 million, and as payment, part of two land lots, namely Lot 702 or 713, Bandar Tanjung Pinang, was offered,” he said.

Zulhilmi said he also took into account that the feasibility study stage for the tunnel project was not completed.

“But, Zarul Ahmad's company did obtain Lots 702 and 713. I also take into account that BUCG from the beginning expected difficulties to be encountered regarding the study of the construction of the undersea tunnel for the third link project, as per the meeting on May 10, 2011," said Zulhilmi

According to the amended first charge, Lim, 64, is accused, in his capacity as the then chief minister of Penang, of abusing his position to receive a bribe of RM3.3 million to assist a company owned by Zarul Ahmad in securing the Major Roads and Undersea Tunnel Construction Project in Penang, valued at RM6,341,383,702.

The offence allegedly took place between January 2011 and August 2017 at the Chief Minister’s Office in Penang.

For the amended second charge, the Bagan Member of Parliament is accused of soliciting a 10 per cent bribe out of the project’s future profits from Zarul Ahmad for assisting his company in securing the project.

The offence allegedly took place near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City, between 12.30 am and 2.00 am in March 2011.

Additionally, Lim faces two charges of disposing of two lots of state-owned land in Penang, valued at RM208.8 million, to a developer linked to the undersea tunnel project.

These offences were allegedly committed at the Penang Land and Mines Office, Komtar, on Feb 17, 2015, and March 22, 2017.

The hearing before Judge Azura Alwi continues on Oct 29.

-- BERNAMA