Consortium Zenith BUCG Sdn Bhd (CZBUCG) said it will sue a Parti Cinta Malaysia (PCM) leader for defaming the company.
CZBUCG chairman Zarul Ahmad Mohd Zulkifli said the company had no choice but to take legal action as its tarnished reputation was affecting the confidence of its financiers.
He said CZBUCG had been transparent, explaining what had taken place over the past three years.
“Our reputation is affected. Soon, the Malaysian Anti-Corruption Commission (MACC) may raid my office.
“My funders may run away. I am sorry, but I will have to take legal action as I have been hammered constantly.
“We will take legal action against (PCM vice-president) Huan (Cheng Guan),” he said in a press conference in Komtar today.
Zarul also warned those planning to debate the matter, saying: “If you cross the line, I will sue.”
CZBUCG won an open tender to build an undersea tunnel connecting George Town on the island and Butterworth on the mainland as well as three other main roads worth RM6.3 billion.
Yesterday, Huan lodged a report at the MACC claiming that the original Chinese shareholders of the company “had been reduced” considerably since winning the project.
Huan told reporters yesterday the Penang government had announced in 2013 that the joint venture (JV) partners of the project were Zenith and China Railway Construction Corporation Ltd (CR) with 70% stake, Beijing Urban Construction Group (10%), Sri Tinggi Sdn Bhd (10%) equity and Juteras Sdn Bhd (10%).
Huan said a search on the Companies Commission showed CZBUCG’s shareholders were now Zenith Construction Sdn Bhd with 99.13% equity, Juteras Sdn Bhd (0.863%) and Beijing Urban Construction Group Co. Ltd (0.0057%).
“Not only does BUCG have such a tiny stake, but the China Rail Group seems to be completely missing as a shareholder,” he was quoted by The Sun daily as saying.
Responding to the accusations, Zarul said China Rail Group and CR were two different companies.
He said CR was still part of the undersea tunnel plus three main roads project under the JV company.
Zarul said Sri Tinggi, who was initially part of the JV, dropped out for business reasons.
“I am really fed up. Huan claims China Railway not in SSM report, but the truth is, it has never been a shareholder.
“As per our JV agreement in January 2013, CR and Zenith Construction, they are with me forever, I am the director of CR Malaysia,” he said.
Penang Chief Minister Lim Guan Eng, who was at the same press conference, said the agreement on the undersea tunnel plus three main roads projects were “fully protected”.
“The state government is fully protected as we deal directly with them.
“The consortium and the individual partners have signed the agreement. They have signed the agreement individually,” he said.