Consortium Zenith Construction Sdn Bhd (CZC) is said to be on the lookout for a majority shareholder to shed its embattled image following probes into alleged corruption in the past two years, sources said, with the board telling FMT yesterday it was going through a restructuring process.

Sources said developer Khor Eng Chuen, who owns ECK Development Sdn Bhd, has shown interest in being the major shareholder of CZC, among other parties. FMT has reached out to ECK and Khor for comment.

Checks on the company’s website showed ECK had built the MBI Desaku township at Padang Meha, Kulim, and will build the PPA1M public servants’ housing in the same town, and another in Penang.

Zenith Construction Sdn Bhd (ZCSB) has a controlling stake in CZC. In turn, ZCSB is held by Vista Lestari Development Sdn Bhd, whose substantial stakeholder is Zarul Ahmad Mohd Zulkifli, who is also a senior executive director of CZC.

Yesterday, CZC said it was going through corporate restructuring to ensure their contract was delivered “efficiently” and would present its plans to the Penang government.

A source had told FMT the restructuring was an effort to rescue the image of CZC and the tunnel and roads project, which has been severely affected by the corruption allegations, among others.

The Penang government had said it would consider any proposals to “ensure timely delivery” of the project and that it was up to CZC’s shareholders to change its ownership makeup.

The undersea tunnel and roads project was mooted by the Penang government to alleviate traffic on the first bridge and to cut down traffic at other congested corridors on the island.

The 7.2km undersea tunnel will be built from George Town to Butterworth, if feasibility studies come back positive.

Besides the tunnel, three bypass roads are to be built: From Air Itam to the Tun Dr Lim Chong Eu Expressway (5.7km), Tanjung Bungah to Teluk Bahang (10.53km) and Gurney Drive to Tun Dr Lim Chong Eu Expressway (4.1km).