Consortium Zenith BUCG Sdn Bhd director Zarul Ahmad Mohd Zulkifli said he received a phone call from Lim some time in 2011, saying that former Chinese premier Wen Jiabao and former prime minister Najib Razak would be attending the signing of the memorandum of understanding (MoU) on April 28, 2011.

Then two MoUs were inked between the Penang government and Consortium Zenith-BUCG’s holding company, Beijing Urban Construction Group.

“I am sure he (Lim) was happy at the material time. He said that this (ceremony) will make others ‘envy’ him,” Zarul said.

Deputy public prosecutor Wan Shaharuddin Wan Ladin then asked the witness if he knew who the “others” Lim was referring to.

“I assumed he was referring to MCA,” Zarul said.

Earlier, Zarul told the court he was “touched” when Consortium Zenith was awarded the RM6.3 billion undersea tunnel project in 2013.

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 was to be built from George Town to Butterworth if the feasibility studies came back positive.

Three bypass roads were also planned as part of the project – from Air Itam to 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).

“However, my happiness was short lived after Barisan Nasional parties criticised my company as a ‘RM2 company’ which won a billion ringgit project,” Zarul said.

He said Consortium Zenith had an advantage in bidding against other companies for the project because of its early involvement in assisting the Penang government to prepare documents for the open tender.

“I knew that some companies were shortlisted for the pre-qualification exercise. It did not mean my company would win the open tender (automatically). I was still worried that YB Lim might influence any upcoming decision,” he said.

The court had previously heard that nine companies took part in the open tender, including Consortium Zenith, which eventually won the contract after it was given the highest score of 93.

Two other companies – China State Construction Engineering Corporation Ltd and VST Cemerlang Sdn Bhd – scored 77 marks each.

To another question by Wan Shaharudin on whether the undersea tunnel project could be done through direct negotiation, Zarul replied in the affirmative.

“I don’t think there was anything wrong in awarding this project through direct negotiation if it was urgently needed,” he said.

“This undersea tunnel is needed to resolve Penang’s traffic jam, so calling for direct negotiation would be justifiable.”

Zarul said Lim made a “U-turn” as he had earlier promised to give Consortium Zenith the project through direct negotiation.

Lim is on trial on charges of using his position to ask Zarul for a 10% cut of the profits from the undersea tunnel project, and accepting RM3.3 million in kickbacks from the businessman.

He is also accused of two counts of dishonestly misappropriating RM208.7 million worth of state land to two companies.

The hearing before session court judge Azura Alwi continues on April 1.