Lim Hock Seng, who was previously in charge of public works, public utilities and transportation affairs, said Guan Eng instructed him to do so after a state executive council (MMK) meeting on Jan 26, 2011 at Komtar, Penang.
“He also passed me the phone numbers of the two directors, namely Lee Chee Hoe and Zarul Ahmad Mohd Zulkifli, after the meeting.
“During the meeting, we were told that a private company was planning to build a tunnel in Penang and wanted to sign an MoU (memorandum of understanding) with the state.
“The state legal adviser was told to come out with a draft for the MoU and to explore provisions under the Land Code on land ownership — on whether land owners can forbid construction work being carried out six feet under their land,” he said, in describing events that transpired during the weekly meeting.
BUCG previously held a 10% share and RM541 million in paid-up capital in the joint venture vehicle, Consortium Zenith-BUCG Sdn Bhd (CZBUCG).
The Chinese company applied to have itself removed as one of three partners in the larger CZBUCG in September 2016 following a fatal crane accident.
The RM6.3 billion project, comprising an undersea tunnel and three roads, was mooted by the state government to alleviate the traffic jam on Penang bridge.
The undersea tunnel, spanning 7.2km, was to connect Pangkor Road in Pulau Tikus on the island with Bagan Ajam in Butterworth and was scheduled to start in 2023.
The “three roads” component were from Air Itam to the Tun Dr Lim Chong Eu Expressway (5.7km), Tanjung Bungah to Teluk Bahang (10.53km), and Jalan Pangkor-Gurney Drive junction to Tun Dr Lim Chong Eu Expressway (4.1km).
Hock Seng said he only knew Zarul and Lee after they met later, but did not state when this meeting took place.
He said a working paper, entitled “Perancangan Link Ketiga Pulau Pinang, Jalan Lingkaran Dalaman George Town dan Jalan Pintas, Lebuhraya Tun Dr Lim Chong Eu ke Air Hitam” was prepared by the Penang Island City Council’s (MBPP) engineering department director Rajendran Anthony for the tunnel project.
Hock Seng told the court that at another state executive council meeting on March 16, 2011, he informed those present that the BUGG representatives had urged the Penang government to ink the MoU “as soon as possible”.
“Our legal adviser came out with a MoU agreement, citing that the state government will not bear any cost in the proposed project,” he added.
He said on April 28, 2011, the Penang government signed the MoU in Putrajaya. The event was witnessed by the prime minister and the Chinese premier.
“This MoU was on the 5km tunnel construction project that cost RM10 billion, with the cost funded by BUCG.”
Hock Seng said Guan Eng, during a state executive council meeting on May 19, 2011, said BUCG had requested for the proposal on the tunnel project to be expedited. The meeting was told that Zarul and Lee had asked for this.
The former Bagan Jermal assemblyman also told the court that 10 officials from the state government were invited by BUCG for a one-week official trip to Beijing, from June 2-8, 2011.
“I was among the 10 who went to Beijing. The BUCG general manager asked us to come,” said Hock Seng.
Guan Eng is accused of using his position as then Penang chief minister to ask Zarul for a 10% cut of the profits which would be made from the roads and tunnel project.
The former finance minister is also accused of seeking RM3.3 million in kickbacks to appoint Zarul’s company to undertake the project.
Guan Eng also faces two counts of dishonestly misappropriating RM208.7 million worth of state land to two companies.
The hearing continues tomorrow before judge Azura Alwi, after Guan Eng’s lawyer Gobind Singh Deo informed the court that his secretary had contracted Covid-19.
“I will go for a swab test now,” he said, adding that he had last seen his secretary three days ago for five minutes.