He said engineering firm HSSI Sdn Bhd was picked as an independent checking engineer through an open tender and had submitted the lowest bid.
HSSI had advised the state government in paying the sum of RM208 million to contractors Zenith Construction (Zenith) for an environmental study. Zenith earlier claimed RM302 million for the study.
HSSI was also the company that oversaw the tender process of the undersea tunnel and roads project, together with the State Tenders’ Committee, chaired by the state secretary.
HSSI, a specialist engineering firm, is also involved in the East Coast Rail Link (ECRL) project.
Lim was responding to state Barisan Nasional chairman Teng Chang Yeow’s claim that the Penang government was lying when it said not a single sen was paid for the undersea tunnel and three roads project.
Teng said a state assembly reply showed the Penang government had paid HSSI RM11.2 million “in cash”.
Lim said Teng, as a former Penang executive councillor, should know that such payments were made in accordance with federal law.
“HSSI Sdn Bhd was granted the job through an open competitive tender awarded by the Penang State Tender Committee because it submitted the lowest bid.
“Treasury instructions issued under the Financial Procedures Act 1957 require the Penang State Tender Committee to be chaired by the Penang state secretary and comprise government officials.
“How come Teng, as a former Penang state executive councillor, is not aware of such laws?” Lim asked at a press conference today.
He also denied Teng’s claim that the Penang government had granted 20ha of land to the undersea tunnel and road builders.
He said what the contractors did with the land swap payment had nothing to do with the state government.
“Neither is the state government responsible for any business transactions entered into by Zenith (the contractors) with other private companies which the state government is not privy to or has not approved.”
He said the sudden “alleged corruption” in the entire project smacked of a political witch-hunt to undermine the Penang government in the run-up to the general election.
“How can there be alleged corruption in the entire project when the entire contract is conducted through an open competitive tender?”
Lim previously said that not a single sen had been paid for the undersea tunnel project. He said what had been paid was RM208 million for the completion of the environmental impact assessment reports for the three highways in the project.
The “three main roads” project, also called the three paired roads, involves highways from Air Itam to Tun Dr Lim Chong Eu Expressway (5.7km), from Tanjung Bungah to Teluk Bahang (10.53km), and from Jalan Pangkor-Gurney Drive junction to Tun Dr Lim Chong Eu Expressway (4.1km).
The 7.2km undersea tunnel will connect George Town’s Jalan Pangkor to Bagan Ajam in Butterworth on the mainland. Construction is scheduled to begin in 2023.
The Malaysian Anti-Corruption Commission (MACC) recently arrested two top executives from the undersea tunnel and road builders.
MACC also said it might be arresting more people to help in its investigation.
Tunnel probe: What are you investigating, Guan Eng asks MACC