The Penang chief minister said the success or failure of the project would now depend on whether the firms involved in the construction of the project were able to “sustain the pressure exerted from the MACC investigations and the daily widespread negative coverage in the BN (Barisan Nasional) media”.
The Malaysian Anti-Corruption Commission has hauled up several people for questioning over the project, including a woman engineering consultant and two company officials. MACC deputy chief commissioner Azam Baki said last month the anti-graft body had recorded statements from 76 witnesses’
Aspects of the project have also been under constant critcism from BN parties, notably the MCA.
Lim said in a press statement today that Wee, a minister in the Prime Minister’s Department, had yesterday shown a copy of Buletin Mutiara, a Penang state government-owned publication, dated March 16 to 31, 2013, to prove that Lim had said China Railway Construction Corporation Ltd (CRCC) was a shareholder.
According to the buletin:
“The state government had awarded the tender to Consortium Zenith BUCG, a special purpose vehicle company set up by a joint venture between local company Construction Zenith, China Railway Construction Corporation Ltd (CRCC) along with Beijing Urban Construction Group, Sri Tinggi Sdn Bhd and Juteras Sdn Bhd.”
Lim said today: “I did not state in March 2013 that CRCC is the main shareholder. At that time, the lawyers had not finalised the agreement between the three parties comprising the state government, Zenith as the successful tenderer and CRCC as the main contractor. The conclusive legal position was only finalised when the agreement was signed by the three parties, on October 6, 2013, and stamped on Oct 29, 2013.”
He cited the stamped agreement which says: “Zenith Construction Sdn. Bhd has secured a joint venture with CRCC Malaysia Sdn Bhd (presently known as CRCC Malaysia Berhad) (1022568-D), a company wholly-owned by China Railway Construction Corporation Ltd, for the purposes of the Construction Works and the implementation of the project, and that the joint venture between the companies shall continue throughout the tenure of the project.”
“What I had said in March 2013, before the agreement was signed in October 2013, was in reference to the joint-venture between the parties. What type of ‘joint-venture’ is clarified legally and conclusively by the contractual agreement that was signed and stamped on October 2013. In that contractual agreement, it is clear that CRCC is the main contractor. Whatever said before October 2013 is not as important or as relevant compared to the contractual agreement signed on October 2013,” Lim said.
The chief minister noted that disputing the usage of the words “contractor” and “shareholder” did not equate to corruption.
“Can Wee explain where the corruption is in the entire tunnel and three main roads project? Or can Wee show proof that there are kickbacks amounting to millions of ringgit paid to the Penang state government leaders as alleged. Wee must explain where is the corruption to dispel the negative impression of a dual selective investigation by the MACC and a political witch hunt by BN, misusing their control of the BN media to smear the reputation of Penang state government leaders.”
He took MCA president Liow Tiong Lai to task for saying he had met CRCC officials and that they had confirmed that CRCC was the main contractor and not the shareholder.
“Why is Liow using his ‘public position to settle private scores’ and forgetting his position as minister, becoming CRCC’s spokesman instead? Liow’s confirmation has only vindicated the state government as truthful about CRCC’s status as a main contractor. Only Wee insists that the state government stated that CRCC was a shareholder of the special purpose vehicle.”