KUALA LUMPUR (July 15): While Consortium Zenith BUCG Sdn Bhd was awarded the Penang undersea tunnel project via an open tender in 2013, a component company of the consortium had already pushed for the project earlier by signing a memorandum of understanding (MoU) with the state in 2011, the Sessions Court heard today.

Consortium Zenith BUCG comprised the joint venture (JV) 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.

Former Penang executive councillor Datuk Lim Hock Seng testified today that Consortium Zenith BUCG was appointed by the Penang Tender Committee in 2013 as the developer for the multibillion-ringgit project to build various roads in Penang, including an undersea tunnel, because the consortium obtained the highest marks for the overall technical and financial assessment.

"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 (SUK) 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 of three major roads and the tunnel. The Technical and Finance Committee agreed with the recommendation by the Secretariat that the consortium obtained the highest marks," he said, as the third prosecution witness of former Penang chief minister Lim Guan Eng's graft trial in connection with the tunnel project.

However, Hock Seng told the court yesterday that back in 2011, the state had already signed an MoU with China's BUCG for the construction of an undersea tunnel and three road expansion packages. In fact, the signing of the MoU was witnessed by then prime minister Datuk Seri Najib Razak and his then Chinese counterpart Wen Jiabao.

The four projects comprised 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, a 12km paired road from Jalan Tanjung Bungah to Teluk Bahang and the 6.5km Penang-Butterworth sea tunnel.

According to Hock Seng, there were two tender briefings held on Nov 29 and Dec 14, 2011, both of which he attended.

He said a total of 60 local and foreign companies submitted their pre-qualification exercise to participate in the tender briefing.

Then, a total of eight companies were found eligible to participate in the request for proposal (RFP), namely China State Construction Engineering Corp 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 that, Hock Seng said Guan Eng proposed to establish two separate committees — namely technical and finance — to evaluate the RFP, which was then agreed by the state exco members.

According to assessment by both committees, Consortium Zenith BUCG came out on top and was appointed the developer for the multibillion-ringgit project.

In this trial, Guan Eng is facing four charges, the first two of which are framed under the MACC Act 2009 and the other two under the Penal Code.

Under the first charge, Guan Eng 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.

Under the second charge read to him in the Butterworth Sessions Court, Guan Eng is 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.