Penang unhappy with Zenith’s explanation on RM22 million bribe

Penang Chief Minister Lim Guan Eng says the state has asked for clarification over allegations that the project contractor paid RM22 million to close graft investigations.

(FMT) – The Penang government is not satisfied with the explanation given by Consortium Zenith Construction Sdn Bhd (CZC), its undersea tunnel and three main roads project contractor, in relation to allegations that it paid RM22 million to two individuals to close graft investigations into the project.

Penang Chief Minister Lim Guan Eng said the state received a response from CZC last week, but was not happy with the reply.

“We have written to them for more clarification. That is all I have to say,” he told a press conference today.

He did not reveal the contents of CZC’s reply.

Earlier this month, Lim said the state secretary would be writing to CZC to seek an explanation on the alleged payout, following the arrest of a businessman by the Malaysian Anti-Corruption Commission (MACC).

The businessman is alleged to have received RM19 million to shut down investigations into the project.

Apart from the businessman, Baling MP Abdul Azeez Rahim is also alleged to have received RM3 million. He has denied the allegation.

Malaysiakini previously reported that Azeez and another businessman were supposed to do “consultancy work in regulatory compliance and risk management” in relation to the undersea tunnel component.

The portal also reported that Azeez and a businessman were issued demand letters by Zenith on Feb 24.

The source said Zenith wanted to take the men to court for “failing to execute their tasks” as per an agreement in July 2017.

However, the legal firm representing Zenith has since retracted the claim made against Azeez.

Azeez said the firm had agreed that he was a victim of name-dropping. He added that the firm had told him it would set the record straight to clear his name.

The infrastructure project came under renewed scrutiny by Barisan Nasional following a fresh probe by MACC.

The project was a hotly debated topic in Penang in 2013 and 2014.

The 7.2km undersea tunnel will connect George Town’s Pangkor Road and Bagan Ajam in Butterworth. Construction is scheduled to begin in 2023.

The “three main roads” (formerly three paired roads) stretch 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).