Lim Guan Eng stands accused of corruption for allegedly receiving RM3.3 million in gratification and soliciting 10% of project profits related to the RM6.3 billion Penang undersea tunnel and major roads project between 2011 and 2017 [1, 2, 3, 4]. The Penang state government awarded the contract to Consortium Zenith BUCG Sdn Bhd (CZBUCG).
Malaysian Anti-Corruption Commission (MACC) investigating officer Zulhilmi Ramli testified that four to five meetings took place between CZBUCG representatives and Penang government officials before the project’s open tender, despite no official records of these meetings existing. Zulhilmi said his understanding came from testimony by CZBUCG director Datuk Zarul Ahmad Mohd Zulkifli [1, 3]. Three documented meetings occurred on May 10, May 19, and July 11, 2011 [3]. On October 6, 2013, Lim Guan Eng signed a preliminary agreement on behalf of Penang with Zarul Ahmad for construction of the undersea tunnel and three major roads [2].
Two parcels of Penang state land, Lots 702 and 713, valued at about RM208.8 million, were transferred to CZBUCG or its related developer partly to settle feasibility study and preliminary design work claims on the project [1, 2, 4]. Zulhilmi confirmed the RM135 million settlement was paid via the transfer of Lot 702, and rejected the defence claim that the state suffered no loss from this land swap. He said, "I disagree that the state government did not suffer any loss from transferring Lot 702." He added, "The transfer of state-owned Lot 702 was made to settle a RM135 million claim by Consortium Zenith Beijing Urban Construction Group (CZBUCG) for work on the feasibility study." However, Zulhilmi could not explain the exact valuation method used for Lot 702 [2, 4].
Documents seized by investigators mainly included payment vouchers, cheque books, and project files related to the three major roads. No documents were seized directly from former CZBUCG director Zarul Ahmad [1, 3]. The transferred land parcels were later developed by Ewein Zenith Sdn Bhd, a subsidiary of the Ewein Group, into the City of Dreams serviced apartment project [4].
