Businessman reveals how Guan Eng asked for 10pct of profit as bribe
SOURCE: The NST – By Khairah N. Karim – December 17, 2021
KUALA LUMPUR: A key witness in the undersea tunnel corruption trial involving Lim Guan Eng told the Sessions Court today that the former Penang chief minister had asked him for a 10 per cent cut from the profit of the project as a bribe.
Datuk Zarul Ahmad Mohd Zulkifli, who is the director of Consortium Zenith Beijing Urban Construction Group (CZBUGC) – the company awarded with the project, said he was shocked when Lim made the request.
The request, he said, was made some time in March 2011.
“I was in disbelief that the request came out from his mouth, a person whom I always thought was against corruption.
“From what I understood, the 10 per cent is meant as a bribe, that I should give him 10 per cent from the profit my company would make when it was awarded the project.
“Lim was then seen smiling when I told him that I agreed to give him the 10 per cent from the profit made in the project and he said his officers and himself would assist me in providing all the information needed for the project,” he said.
The 23rd prosecution witness said he was initially promised by Lim that the project would be awarded via direct negotiation but in May, the same year, he was told that the project would be called for an open tender instead.
Zarul said at that time, he was disappointed that Lim had made a ‘U-turn’.
He said however, Lim had promised to help him win the project tender.
“Lim had instructed his officers to give their full cooperation to me in this matter and asked for the request for proposal (RFP) to be expedited,” he said.
Lim is facing four charges of using his position as the then chief minister to solicit gratification to help Consortium Zenith Construction to secure the tunnel project.
He is alleged to have sought 10 per cent of the profit to be made by the company from its owner, Zarul.
He is also accused of receiving RM3.3 million for himself and causing two plots of land belonging to the state government to be disposed to two companies linked to the tunnel project.
Earlier, when Zarul took the stand, Lim’s lawyer Gobind Singh Deo told the court that the defence wanted to get hold of a copy of the document on the businessman’s statement to the Malaysian Anti-Corruption Commission’s (MACC) during the the investigations into the case.
“The witness mentioned clearly that he was arrested and remanded by the MACC in regards with the tunnel project and we want to make an application for the documents in relation to that,” he said.
He said he wanted to cross-examine the witness on the statement to the MACC, which the defence claims contradicts the witness statement read by the witness in court today.
However, this was objected by deputy public prosecutor Wan Shaharuddin Wan Ladin.
Wan Shahruddin said Zarul should be allowed to finish reading his testimony first, and the defence can make the application before their cross-examination begins.
Judge Azura Alwi then said she would hear the defence’s bid for the prosecution to furnish them with the documents before the cross-examination starts.
The trial will continue on March 23.
ADDITIONAL REPORTS…
I was shocked when Guan Eng ‘asked’ for 10% cut, businessman tells court
SOURCE: FreeMalaysiaToday – Ho Kit Yen – December 17, 2021
KUALA LUMPUR: The star witness in Lim Guan Eng’s undersea tunnel corruption trial told the sessions court he was shocked when the former Penang chief minister asked him for a 10% cut in the future project.
Consortium Zenith BUCG Sdn Bhd director Zarul Ahmad Mohd Zulkifli said Lim’s purported request was made some time in March 2011 when he was driving him back to his hotel after they had dinner.
“I was shocked because I could not imagine this would come from YB (Lim), a person that I viewed as someone who is against corruption,” he said, adding that he understood the 10% request was meant as a bribe.
Lim is standing trial on charges of using his position to ask Zarul for a 10% cut of the profits from the undersea tunnel project, and accepting RM3.3 million in kickbacks from the businessman.
He is also accused of two counts of dishonestly misappropriating RM208.7 million worth of state land to two companies.
Zarul told the court he was introduced to Lim by former minister Nazri Aziz at a hotel lounge here in January 2011.
“I took the opportunity to tell YB (Lim) that BUCG was keen to undertake any available project in Penang.
“He looked interested in what I had told him. From there, we exchanged numbers,” he said, pointing out the meeting had not been planned.
He said that several weeks after the meeting, he contacted Lim, who invited him and BUCG representatives to his office at Komtar to give a briefing.
“He told me a person by the name of Lim Hock Seng (former Penang exco member) will be contacting me from time to time, to provide me with details of the proposed tunnel and roads project,” he said.
Earlier, when Zarul took the witness stand, Lim’s lawyer, Gobind Singh Deo, told the court the defence wanted the prosecution to furnish it with a copy of the businessman’s statement recorded during the Malaysian Anti-Corruption Commission’s (MACC) investigation.
Gobind said that in Zarul’s witness statement tendered in court today, he mentioned that he was remanded by MACC in 2018.
“We want to cross-examine him on his MACC statement, which we say contradicts his 2018 statement,” he said.
The defence had made the same request to obtain Zarul’s statement in August.
However, deputy public prosecutor Wan Shaharuddin Wan Ladin said the court should allow Zarul to finish reading his testimony first.
“They can make this application before cross-examination,” he said.
Judge Azura Alwi said she would hear the defence’s application before Gobind began with his cross-examination.
The hearing will resume on March 24 after Zarul told the court he was suffering from stomach ache.
Guan Eng promised to give us tunnel project, witness tells court
SOURCE: FreeMalaysiaToday – Ho Kit Yen – December 17, 2021
KUALA LUMPUR: Lim Guan Eng had promised to give the RM6.3 billion undersea tunnel project to a consortium via direct negotiation before making a U-turn and calling for an open tender, the sessions court here was told.
Consortium Zenith BUCG Sdn Bhd director Zarul Ahmad Mohd Zulkifli said Lim had made the promise in March 2011.
However, the key prosecution witness in the former chief minister’s corruption trial said he was left disappointed by the U-turn.
“I was told in June (that year) that the tunnel project will be done through an open tender.
“YB promised me that he would ‘assist’ my company to get the project and had instructed his officers to cooperate with me.
“He requested the preparation of RFP (request for proposal) papers to be sped up and asked us to assist the state government officials and (former exco man) YB Lim Hock Seng over the matter,” he said.
Zarul added that he later told Hock Seng that the consortium was working hard to bid for the project, and that the company was willing to provide assistance in drafting the papers.
“YB Hock Seng told me that YB Lim asked him to assist us. His words gave me confidence that this project would be given through direct negotiation,” he said.
Zarul told the court that Hock Seng informed him about a plan to ink a memorandum of understanding (MoU) between the state government and BUCG.
“In return, I told YB Hock Seng that I would plan for another MoU to be signed at the federal government level, between Malaysia and China,” he said.
The court previously heard that two MoUs were inked between Penang and BUCG on March 17, 2011 and April 28, 2011 for the tunnel project.
“Despite the change in tendering process from direct nego to open tender, BUCG ultimately won the bidding process.
“I was indebted to YB Lim and Hock Seng for assisting my company to make early preparation so we were more prepared to compete with other companies,” Zarul said.
A total of nine companies, including Consortium Zenith BUCG, took part in the open tender process. Consortium Zenith BUCG was given the highest score of 93.
Tunnel’s feasibility study yet to be done, says exco
Earlier today, Penang executive councilor Zairil Khir Johari, in charge of transport and infrastructure, was called to the witness stand.
He told the court that the feasibility studies on the proposed 7.2km tunnel have not been completed and the state government has not paid Consortium Zenith BUCG for it.
Deputy public prosecutor Wan Shaharuddin Wan Ladin then asked Zairil about two new agreements between the state government and Consortium Zenith BUCG.
Wan Shaharuddin: Was Datuk Norazmi Mohd Narawi (the state legal adviser) the person who prepared the master and supplementary agreements? It did not involve private lawyers?
Zairil: Yes
However, under cross-examination by lawyer Gobind Singh Deo on whether the state government could engage the services of private lawyers on preparing the new agreements, Zairil answered in the affirmative.
“It is up to the state authorities to decide,” Zairil said.
Previously, former Penang legal adviser Faiza Zulkifli told the court that she was not consulted on the drafting of a contract between the state government and Consortium Zenith BUCG for the tunnel project.
She said Lim, who was then chief minister, had appointed the law firm of Lee Hishammuddin Allen & Gledhill to draft and execute the contract.
“I abided by the chief minister’s decision to appoint private lawyers in this matter.”
The hearing continues before judge Azura Alwi on March 24, 2022.
Lim is standing trial on charges of using his position to ask Zarul for a 10% cut of the profits from the undersea tunnel project, and accepting RM3.3 million in kickbacks from the businessman.
He is also accused of two counts of dishonestly misappropriating RM208.7 million worth of state land to two companies.
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