CZBUCG chairman Zarul Ahmad Mohd Zulkifli said the stop order was issued by the state government last month.
No reason was given for the order, except a directive requiring the company to focus on another project they have with the Penang government, namely the construction of three major highways there.
“We were told to stop for now (feasibility study on the underground tunnel). That is something we can wait because we need to focus on the three highways,” he told a press conference here today.
Zarul added that the consortium had spent RM100 million on the study which is 83 percent complete. However, should the project fall through, they may not be entitled to a compensation.
“There is no compensation package in the agreement. Whatever work we have done, we have to claim from them.”
The proposed underground tunnel project has been heavily scrutinised with Parti Cinta Malaysia (PCM) recently lodging a report with the Malaysian Anti-Corruption Agency (MACC) urging to conduct a thorough investigation into the contract.
Zarul, however, defended the consortium’s right to the project, saying that 60 corporations had participated in an open tender and his Bumiputera-owned company won fair and square. The project was to be paid for with 44.5ha of land in Tanjung Pinang.
On the three highways, he said the project would continue as stipulated according to their contract with the state government. Once the feasibility study is approved, “it is a go”.
Zarul hoped the construction could begin by September, depending on the land acquisition and approval from the Department of Environment.
He also told reporters that the CZBUCG had proceeded with legal action against PCM vice-president Huan Cheng Guan over the latter’s alleged defamatory statements against them.
“Huan insinuated, among other issues, that Consortium Zenith breached the gazetted scale of fees for consultancy rates when conducting the feasibility study and detailed design for the undersea tunnel project and the three paired roads, and for making unwarranted profits.
“His statements are defamatory and have critically jeopardised the project and our reputation.
“It directly impacts the ongoing and future negotiations with current and potential investors.”