Lim Hock Seng, who was previously in charge of public works, public utilities and transportation affairs said Guan Eng only told the Jan 26, 2011 meeting that “a private company” was keen on the project.
To a question by deputy public prosecutor (DPP) Wan Shaharuddin Wan Ladin if the witness was aware that Guan Eng had met and spoke to Consortium Zenith BUCG Sdn Bhd (Zenith) senior director Zarul Ahmad Mohd Zulkifli earlier that month (January 2011) over the undersea tunnel project at the Shangri-La Hotel, Hock Seng said he did not know about it.
“He did not tell us about it, except that a company was interested in the project,” he said.
Previously, the court heard that Guan Eng instructed Hock Seng to contact Zarul and another director Lee Chee Hoe, after the said exco meeting ended.
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” 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).
Wan Shaharuddin then asked the witness about the terms of the “preliminary agreement” inked between the Penang government and Consortium Zenith BUCG Sdn Bhd.
The DPP pointed out the contract was drafted by a law firm (Lee Hishammuddin Allen & Gledhill), arguing that the terms did not protect the Penang government’s rights in the project.
Hock Seng however denied this contention. “The draft was reviewed by our state legal adviser and tabled before the exco meeting”.
“Under the terms, Zenith will be given the rights on toll concessions for 30 years.
“The toll rate cannot be higher or lower than the existing Penang Bridge and Sultan Abdul Halim Muadzam Shah bridge tolls,” he said, adding that the company also could not seek compensation from the state government if the traffic volume was low.
During cross examination, lawyer Gobind Singh Deo asked Hock Seng if he felt Guan Eng’s instruction for him to call Zarul and Lee was nothing “sinister”. Hock Seng answered in the affirmative.
“To me, I don’t see it as an instruction. The chief minister also instructed other exco members to look into matters under their portfolio,” he added.
Hock Seng told the court that the Penang government could not build the undersea tunnel on its own, without a joint venture.
“This undersea tunnel is first of its kind in Asia. BUCG is a well known company in China and they built the Beijing Olympics stadium,” he added.
BUCG previously held a 10% share and RM541 million in paid-up capital in their joint venture, Consortium Zenith BUCG Sdn Bhd.
The Chinese company had applied to have itself removed as one of three partners in the larger CZBUCG in September 2016 following a fatal crane accident.
The hearing continues on Wednesday before judge Azura Alwi.
Guan Eng is accused of using his position as then chief minister to ask Zarul for a 10% cut of the profits which would be made from the 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.