Consortium awarded Penang undersea tunnel project had highest score — witness

KUALA LUMPUR (July 15): Consortium Zenith BUCG Sdn Bhd was awarded the Penang undersea tunnel project in 2013 because it had obtained the highest score among the eight shortlisted companies for the overall technical and financial assessment at the request for proposal stage, the Sessions Court heard today. 

Former Penang executive councillor Lim Hock Seng (pictured) said there were two tender briefings held on Nov 29 and Dec 14, 2011, both of which he attended.

Testifying in former Penang chief minister Lim Guan Eng’s graft trial, Hock Seng said a total of 60 local and foreign companies submitted their pre-qualification exercise to participate in the tender briefing. 

Subsequently, eight companies were found eligible to participate in the request for proposal stage, namely China State Construction Engineering Corporation 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.

Following the assessment, Consortium Zenith BUCG came out on top and was appointed the developer for the multibillion-ringgit project, said Hock Seng.

"The matter was then raised to the State Executive Council for approval. I confirm that this decision was presented by YB Datuk Seri State Secretary at the state council meeting on Jan 30, 2013.  

"The purpose of the presentation was for the consideration of appointing Consortium Zenith BUCG for the project comprising three major roads and the undersea tunnel. The Technical and Finance Committee agreed with the recommendation by the secretariat that the consortium obtained the highest marks," he said. 

Consortium Zenith BUCG is a joint venture between Zenith Construction Sdn Bhd and China Railway Construction Ltd, in addition to Beijing Urban Construction Group (BUCG), Sri Tinggi Sdn Bhd and Juteras Sdn Bhd. 

Yesterday, Hock Seng had told the court that Guan Eng had instructed him in 2011 to contact two BUCG representatives concerning a proposal for the construction of the undersea tunnel.

In the same year, the state signed a memorandum of understanding with BUCG for the construction of the 6.5km Penang-Butterworth undersea tunnel and three major roads. The signing of the MoU was witnessed by then prime minister Datuk Seri Najib Razak and his then Chinese counterpart Wen Jiabao. 

The three major roads are a 4.2km bypass from Gurney Drive to Lebuhraya Tun Dr Lim Chong Eu, a 4.6km bypass between Lebuhraya Tun Dr Lim Chong Eu and Bandar Baru Air Itam, and a 12km paired road from Jalan Tanjung Bungah to Teluk Bahang.

Guan Eng faces four charges, the first two of which are framed under the MACC Act 2009 and the other two under the Penal Code.

The DAP secretary-general is accused of using his position as the then chief minister to solicit gratification to help Consortium Zenith BUCG secure the tunnel project. He is alleged to have sought 10% of the profit to be made by the company from Zenith Construction Sdn Bhd senior executive director Datuk Zarul Ahmad Mohd Zulkifli.

Guan Eng is also accused of using his position as the then chief minister to receive RM3.3 million in gratification for himself as an inducement for helping the company secure the project valued at RM6.3 billion.

For the third and fourth charges, Guan Eng is accused of causing two plots of land belonging to the Penang government worth RM208.8 million to be disposed of to two companies linked to the tunnel project.

Guan Eng has pleaded not guilty to all four charges. The trial before Sessions Court judge Azura Alwi continues tomorrow.

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