Penang undersea tunnel trial: CZBUCG received advantage from earlier meetings with state — MACC IO

Penang undersea tunnel trial: CZBUCG received advantage from earlier meetings with state — MACC IO

By Hafiz Yatim / theedgemalaysia.com
04 Jun 2026, 05:35 pm





KUALA LUMPUR (June 4): A Malaysian Anti-Corruption Commission (MACC) investigating officer (IO) told the Sessions Court on Thursday that Consortium Zenith BUCG Sdn Bhd (CZBUCG) received an advantage compared to other companies in the Penang undersea tunnel project, as it had received individual briefings from the state government.


Zulhilmi Ramli, 34, said in his investigations, this provided the company leverage.


“In my investigations, Consortium Zenith BUCG Sdn received technical and financial advantages. This follows, [since] there is discussion between the company and the Penang government without the attendance of others who may bid for the tender.


“Initially, the project was awarded via direct tender. However, the Penang government reverted to an open tender,” he added.


Zulhilmi was asked further by counsel Haijan Omar of Messrs Haijan Omar & Co (representing former Penang chief minister Lim Guan Eng) whether, in his investigations during the three meetings from May to July 2011, the company had received technical information and forecasts with regards to the three main roads and a tunnel.


“This is over the cost and forecast… and this provided the company (CZBUCG) to offer a lower price compared to other companies who tendered for the project. Hence, CZBUCG received the technical advantage and hence won the tender,” the MACC IO said.


Zulhilmi, who is the 38th and final prosecution witness in the Penang undersea tunnel graft trial, told the court that he had not obtained CZBUCG’s draft request for proposal (RFPs) for the project, but based his findings on the minutes he had obtained from the three meetings held on May 10, May 19 and July 11, 2011, as well as from interviewing witnesses, including CZBUCG director Datuk Zarul Ahmad Mohd Zulkifli.


He agreed with Haijan that Lim had not attended the three meetings in question, where prior to that, the Penang state government had signed two memoranda of understanding with regards to the project with Beijing Urban Construction Group (BUCG), a China state-owned company.


Haijan had asked how the company had received material advantage with regards to the project, since even though the project had initially been awarded via direct negotiation, the Penang government later wanted the bid to be done via open tender.
Zarul Ahmad told court firm had distinct advantage


Prior to this, in his testimony in 2025, Zarul Ahmad said that CZBUCG had received a distinct advantage from the Penang government and its then-chief minister, when it bid for the project, as he was initially the broker for BUCG to bid for the project.


Zarul Ahmad testified that his company had been involved in direct negotiations for the project, but the Penang government subsequently decided to change it from direct negotiation to an open tender system.


The star witness said that despite the change to an open tender and despite several companies having to bid for the project by submitting their RFPs, Lim had assured him that his company would get the project as the former Penang chief minister had preferred the construction of a tunnel rather than a third bridge from the mainland to Penang island.


“Lim told me that a tunnel would require less approval from the federal government, and, being an Opposition state (at that time), this was something that it wanted to avoid (the involvement of the federal government). Furthermore, Lim told me [to get] my company to bid for the tunnel project,” Zarul Ahmad had testified.


The construction of the tunnel and expansion of the three main roads is to alleviate the traffic congestion to the Penang island, following a study done in the 1990’s showing the prospect.


Despite the proposal initially for the construction of the tunnel, Haijan said the federal government had turned down its construction. Zulhilmi replied that he was not aware of this.


Zulhilmi said that when he took over as IO, the four investigation papers opened by the MACC had focused on the false claim, feasibility study and detailed design of the project, the purported graft and acceptance by Lim, Lim’s abuse of power as Penang CM, and finally a further investigation on Datuk G Gnanaraja.


At the last hearing, the MACC IO had told the court that the initial probe into the case had shown no further action to be taken on Lim, but when he took over the case, he recommended that a charge be preferred on the DAP politician.


Lim is on trial for using his position as then-Penang chief minister to solicit a 10% cut in the RM6.3 billion undersea tunnel project’s profits from Zarul Ahmad, in return for aiding Zarul Ahmad’s company to secure the project.


The 65-year-old former finance minister, who is the current Bagan member of Parliament and Ayer Putih assemblyman, is also accused of getting RM3.3 million in kickbacks. A purported RM2 million paid on Aug 18, 2017 and Aug 29, 2017, via Gnanaraja, is said to be part of the RM3.3 million.


Lim, who is currently an adviser to DAP, also faces two counts of dishonest misappropriation of property, in the release of two plots of state-owned land, cumulatively worth RM208.75 million, to Ewein Zenith Sdn Bhd and Zenith Urban Development — two property companies linked to the controversial undersea tunnel project.


The trial continues before Sessions Court judge Azura Alwi on Friday (June 5).