Lim Hock Seng, who was previously in charge of public works, public utilities and transportation affairs, told the sessions court that several companies (including CZBUCG) were shortlisted for the project.
Other companies were China State Construction Engineering Corporation Ltd, VST Cemerlang Sdn Bhd, Setia Precast Sdn Bhd, ECK Construction Sdn Bhd, Gamuda Bhd, Zambina Wawasan Sdn Bhd, IJM-CRGL Joint Ventures and WCT-Daewoo Joint Ventures.
“Because of the high score, the state procurement board (Lembaga perolehan negeri Pulau Pinang) suggested the appointment of CZBUCG for the tunnel and three main roads project.
“CZBUCG is a joint venture company with two others, Juteras and Sri Tinggi,” he said.
Hock Seng said the state government had decided at the state executive council meeting on Oct 14, 2011 to invite companies to bid on the tunnel and roads project through open tender.
Chinese-owned BUCG (Beijing Urban Construction Group) previously held a 10% share and RM541 million in paid-up capital in the joint venture vehicle, CZBUCG.
It 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.
Meanwhile, Hock Seng told the court that state government officials – namely Rajendran Anthony, Syukri Said, Mohamad Hassan and Muhamad Azrai Mohamad Zaini – met CZBUCG representatives on one occasion in July 2011, to talk about preparing a request for proposal (RPF) document.
“Based on the minutes of the meeting, they spoke about ways to improve the request for proposal documents on the tunnel and roads project,” he said, adding that he was not at the meeting.
Hock Seng had told the court yesterday that he met two company directors in early 2011 before the open tender was called.
The court also heard that the Penang government had inked a memorandum of understanding with the company on April 28, 2011.
Guan Eng is accused of using his position as then Penang chief minister to ask Consortium Zenith Construction Sdn Bhd senior director Zarul Ahmad Mohd Zulkifli 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.