PETALING JAYA: Barisan Nasional should not be blamed as it is DAP’s own
doing that “sabotaged” the Penang undersea tunnel project, said Gerakan
vice-president Datuk Dr Dominic Lau (pic).
He added it began when the DAP-led Penang government failed to provide
feasibility reports on the project, which were supposed to be completed
by April 2016.
“You missed the deadline and in October 2017, the special purpose
vehicle (SPV) said there is no more urgency to complete the reports.
“Based on the original timeline, the first phase of the project was
supposed to start construction in the first quarter of 2015 and
completed by this year.
“As of now, this first phase has not even started construction,” he said in a statement yesterday.
Despite the multiple delays in the reports and the construction starting
date, he said the Penang government did not appear to have penalised
the SPV.
He said when the project was awarded, a statement was issued stating
that shareholders of the SPV consortium are China Railway Construction
Corporation (CRCC), Beijing Urban Construction Group (BUCG), Zenith
Construction, Juteras Sdn Bhd and Sri Tinggi Sdn Bhd.
“But today, CRCC, BUCG and Sri Tinggi were no longer listed as
shareholders while Juteras Sdn Bhd is listed as winding up – leaving
only one (Zenith Construction) out of the four shareholders in the
agreement.
“Despite a material change of the financial and technical strength
promised during the award and what it is now, the Penang government
still does not appear to want to cancel the project or penalise the
SPV,” he said.
“Even five years after the contract was awarded, the SPV still only has
paid-up capital of RM26.5mil – way below the RM381mil minimum paid-up
capital required by the Penang government to deliver the project.
“Meanwhile, the SPV is on course to make billions in two property
projects valued at RM800mil and RM15bil respectively,” he said.
Meanwhile, Barisan Nasional Strategic Communications deputy director
Datuk Eric See-To said the agreement shown to the media by Penang Chief
Minister Lim Guan Eng was different from the one MCA deputy president
Datuk Seri Dr Wee Ka Siong said was not stamped.
The agreement shown by Lim in a press conference on Friday was between
the Penang state government with Consortium Zenith-BUCG; and not between
the state and CRCC.
Previously, the Penang state government had shown a copy of a letter of
support from the CRCC to prove that it is a party to the SPV awarded to
undertake the undersea tunnel project.
On Tuesday, Dr Wee’s statement noted that the Acknowledgement of
Commitment signed by the state government with CRCC was not a legally
binding document and was hence not stamped.
In-depth query: A screen grab of the video where Dr Wee demanded explanations over the controversial Penang undersea tunnel.
Dr Wee, is trained as a civil engineer has a Master’s in traffic engineering and a PhD in transportation planning, believed to have worked as an
Environmental Impact Assessment and Traffic Impact Assessment
consultant for more than a decade. He is currently a minister in the
Prime Minister’s Department.
PETALING JAYA: Datuk Seri Dr Wee Ka Siong threw hard-hitting questions at the Penang government, demanding an explanation for the controversial undersea tunnel project.
The MCA deputy president raised major concerns in videos uploaded in two parts to MCA’s YouTube channel.
He zeroed in on the changes in the paid-up capital of a special purpose vehicle (SPV) and how two Chinese construction giants have “disappeared” from the SPV shareholding.
He also touched on the state government’s “agreement” with China Railway Construction Corporation Ltd (CRCC) and Penang’s insistence that no money was paid for the project.
In the videos, also uploaded on Dr Wee’s Facebook page, the Minister in the Prime Minister’s Department had a whiteboard to his left showing the changes in the shareholding while a television screen to his right displayed various documents.
Dr Wee wanted Penang Chief Minister Lim Guan Eng to clarify why the SPV Consortium Zenith Construction Sdn Bhd’s paid-up capital was reduced from RM4.6bil to RM70.5mil.
He said while Beijing Urban Construction Group (BUCG) was no longer a shareholder in the SPV, CRCC was never in the picture.
Dr Wee said back in March 4, 2013, the state government’s official newsletter Buletin Mutiara published an article quoting state secretary Datuk Seri Farizan Darus as saying the SPV had a paid-up capital of RM4.6bil, with Zenith Construction Sdn Bhd and CRCC jointly holding a 70% stake in it.
“We are in great shock because just days ago, CRCC went on record to deny ever being a shareholder and developer of the undersea tunnel SPV.
“Without the participation of CRCC and BUCG, the actual capital of the other component SPV back then is only RM8.2mil,” said Dr Wee, who is trained as a civil engineer and has a Master’s in traffic engineering and a PhD in transportation planning.
He, however, said the SPV had a total paid-up capital of RM70.5mil.
Dr Wee added that currently, Zenith Construction has a 47.12% equity in the SPV, Juteras Sdn Bhd (0.75%); Kenanga Nominees (Tempatan) Sdn Bhd (38.92%) and Vertice Bhd (formerly known as Voir Holdings Bhd, 13.21%).
He also revealed that Consortium Zenith BUCG Sdn Bhd was only registered on July 5, 2012, one day before the state government invited the consortium to submit a request for proposal (RFP).
“Chief Minister, you may argue that they formed the consortium just one day before to make it to the tender.
“But bear in mind your state secretary said the consortium was selected based on the financial and technical strength of CRCC and BUCG,” he said, adding that Zenith Construction was only less than three months old when it was then invited to participate in the pre-qualification for the tender.
Dr Wee also said that Acknowledgement of Commitment signed by the state government with CRCC was not a legally binding document.
“Where is the stamping of documents as required and which is the Court of Arbitration to arbitrate disputes?” he asked.
Dr Wee also questioned Lim’s stand that not a single sen was paid when state exco member Lim Hock Seng replied in the state assembly on March 19 last year that a land swap deal worth RM208mil was identified.
“The said land has been developed and sales of properties for the City of Dreams (which is built on the land) are ongoing. Aren’t you aware of that?
Dr Wee also urged Lim to give a detailed breakdown of how Consortium Zenith reaped a significant after-tax profit of RM60mil for the financial year that ended on Aug 31, 2015, when it had only conducted studies and had yet to start any construction work.- The Star
In custody: The consultant being taken out of the magistrate’s court in Putrajaya. — Bernama
PETALING JAYA: A senior engineering consultant in her 50s is the latest to be detained in connection with the probe over controversies surrounding the Penang undersea tunnel project.
The consultant is believed to have forged claim documents for the feasibility studies valued at RM305mil for the mega project of three main roads and an undersea tunnel to the state government, said a source familiar with the Malaysian Anti-Corruption Commission (MACC) investigation.
The woman is expected to be remanded at the Putrajaya magistrate’s court today.
She was arrested at MACC headquarters in Putrajaya at 6.10pm yesterday after her statement was recorded.
“The investigators are trying to determine if other individuals were involved in the preparation of the falsified documents,” the source added.
The engineering consultant is the third person to be arrested in MACC’s investigations into the Penang undersea tunnel project.
Two high-ranking Datuks of development and construction companies were earlier arrested on Jan 9 before being remanded for six days beginning Jan 10.
The remand was then extended for another five days from Jan 15.
They were released on MACC bail of RM200,000 each on Jan 19 by the Putrajaya magistrate’s court.
On Monday, MACC deputy chief commissioner (operation) Datuk Seri Azam Baki had said that more individuals would be hauled up over the project.
The RM6.3bil mega project includes building the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in north Butterworth, 10.53km North Coastal Paired Road from Tanjung Bungah to Teluk Bahang, 5.7km Air Itam-Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive-Tun Dr Lim Chong Eu Expressway bypass.
The MACC has since recorded statements from more than 70 people and visited more than 40 premises in the course of their investigation.
By Royce Tan The Star
State govt can only hold SPV liable, says Wee
PETALING JAYA: Although Penang Chief Minister Lim Guan Eng has reiterated that not a single sen was paid for the feasibility study of the undersea tunnel, the fact remained that it was paid in kind, said Datuk Seri Dr Wee Ka Siong.
Dr Wee, who is MCA deputy president, said the crux of the problem was that the state government had no contractual nexus with the contractor.
“The state government can only hold the special purpose vehicle (SPV) liable, not the contractor.
“Don’t confuse the people with the SPV and the contractor. SPV means you can hold it liable.
“If a contractor is subsequently awarded by the SPV, that’s between the contractor and the SPV.
“If the SPV fails to pay the contractor, the contractor has no obligations (to construct),” he said.
He added that he had conducted a comprehensive research and he knew what happened.
“I welcome this project, but it must be carried out in a proper manner. This is what I want.
“Don’t blame others. If at all you need to blame somebody, it is your SPV that you appointed.
“They keep on delaying the report, not us. We have no say in the report and we’ve not even seen it,” said Dr Wee.- The Star
In troubled waters: An artist’s impression showing where the tunnel project will start on the island.
Land swap under MACC scrutiny
PETALING JAYA: The Malaysian-Anti Corruption Commission (MACC) probe into the controversial Penang undersea tunnel is focused on land swaps that were made for the feasibility and detailed design study which has yet to be completed.
Sources said investigators are scouring documents involving two plots of land – Lot 702 and Lot 713 in Bandar Tanjung Pinang – with a size of 1.48ha and 2.31ha respectively.
The value of Lot 702 is around RM135mil while Lot 713 is around RM160mil.
It is learnt that both parcels of land have since been mortgaged to banks to obtain financing. The state government has also authorised planning permission on both parcels of lands.
“The state government paid the consultant for the feasibility studies by means of two land swaps. The cost for the feasibility study is around RM305mil.
“It has become an issue on why the study cost was inflated so much when it should have been an estimated RM60mil,” sources said, adding that determining the inflation and the reason behind it were among the challenges faced by the investigating team.
The sources also said that the graft-busters have their sights targeted on “somebody” who has been enjoying kickbacks and entertainment from the deal.
The feasibility and detailed design study is for the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in Seberang Perai.
It is part of the RM6.3bil mega project comprising a 10.53km North Coastal Paired Road (NCPR) from Tanjung Bungah to Teluk Bahang, the 5.7km Air Itam–Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive–Tun Dr Lim Chong Eu Expressway bypass.
Yesterday, the investigating team also questioned four officers from several state government agencies on the land swaps.
Sources added that the anti-graft agency also raided a property agency office in Penang and carted various documents away. It is learnt the chief executive officer of the company was not around during the raid.
MACC deputy chief commissioner Datuk Seri Azam Baki said his investigating team has yet to call in any witnesses for the case as they are still conducting a thorough study on the seized documents.
He added that the officers would still be obtaining more documents from the companies involved and also from the state government.
Two bosses of construction firms held for six days as MACC investigates project
Taken away: Officers escorting one of the men out of the courthouse in Putrajaya.
MACC digs deeper
A swap involving two parcels of land worth close to RM300mil is in the spotlight as the MACC intensifies investigations into claims of corruption in Penang’s undersea tunnel project and several accompanying highway projects. Two ‘Datuks’ have been remanded and several key officials in companies and agencies involved in the project have been questioned. But Chief Minister Lim Guan Eng says the project will go on.
GEORGE TOWN: Chief Minister Lim Guan Eng says the undersea tunnel project, now the subject of a corruption investigation, will proceed unless there is a court order to stop it.
He said he was baffled by yet another investigation into the project as the Malaysian Anti Corruption Commission (MACC) had been conducting an investigation into the RM6.3bil mega project comprising the tunnel and three other highways since 2016.
“What are they investigating now? Is it because of the looming general election?
“The project was awarded via an open tender overseen by international accounting firm KPMG.
“Still, I have instructed everyone involved to give their full cooperation to the MACC in its investigation as we have nothing to hide,” said Lim at a press conference at Komtar yesterday.
On Tuesday, graft-busters arrested two “Datuks” involved in the controversial Penang undersea tunnel project to help in investigations into claims of corruption.
The duo, who were picked up in Putrajaya and Penang, have since been remanded for six days to facilitate the probe.
The anti-graft agency raided the offices of four state government agencies – the Penang Public Works Department, Penang State Secretary, Penang Office of Lands and Mines and Penang Valuation and Property Services Department – and three property development and construction companies – Ewein Zenith Sdn Bhd, 555 Capital Sdn Bhd and Consortium Zenith Construction Sdn Bhd’s Penang office.
MACC officers also questioned several officers in charge of the respective agencies and companies. Sources familiar with the investigation said the probe into the undersea tunnel project was also zooming in on land swaps.
Ewein Zenith is a joint-venture vehicle of Ewein Land Sdn Bhd and Consortium Zenith BUCG Sdn Bhd.
The latter is a Malaysia-China joint venture that was awarded the RM6.3bil mega project to build the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in Seberang Prai, a 10.53km North Coastal Paired Road (NCPR) from Tanjung Bungah to Teluk Bahang, the 5.7km Air Itam–Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive–Tun Dr Lim Chong Eu Expressway bypass.
Consortium Zenith BUCG changed its name to Consortium Zenith Construction Sdn Bhd on Jan 18 last year after the withdrawal of Beijing Urban Construction Group (BUCG).
In a related development, Vertice Bhd (formerly known as Voir Holdings Bhd) said the current investigation by the MACC will not impact the progress of the undersea tunnel project.
It said the project was an integral component of the Penang Transport Master Plan and that the role of Consortium Zenith Construction as the main contractor would remain.
Consortium Zenith Construction is a 13.2% associate company of Vertice. PUTRAJAYA: Two high-ranking bosses of development and construction companies have been remanded for six days as graft investigators continue their probe of the Penang undersea tunnel project. The two “Datuks” were held here and in Penang before being brought to court.
A 59-year-old businessman was brought to a magistrate’s court here at 9.40am yesterday and remanded for six days until Monday to help with the Malaysian Anti-Corruption Commission’s (MACC) investigation.
Magistrate Fatina Amyra Abdul Jalil allowed MACC prosecutors’ remand application although the Datuk’s lawyer Hamidi Mohd Noh objected, arguing that there was no need for his client to be held.
“I told the court that my client has been cooperative with the MACC.
“I would also like to point out that my client is innocent and his remand is only to assist the investigation,” he told reporters after the proceedings.
The MACC had initially asked for the Datuk to be held for seven days but the magistrate only allowed six days.
He was arrested at the MACC headquarters at around 8.45pm on Tuesday after being called for his statement to be recorded.
In George Town, another Datuk was brought to court for a remand application at 11.40am.
He was handcuffed and wearing MACC’s orange lock-up T-shirt with black pants when he arrived at the courthouse escorted by MACC officers.
The 49-year-old appeared calm and smiled to reporters but did not say anything before he was led inside.
Deputy registrar Muhammad Azam Md Eusoff granted a six-day remand order and the businessman was escorted out of the courthouse about 30 minutes later.
The case is being investigated under Section 16(a)(B) of the MACC Act 2009 for bribery.
It is also believed that one of the Datuks remanded yesterday tested positive for drugs.
On Tuesday, MACC personnel raided the offices of four state government agencies – the Penang Public Works Department, Penang State Secretary, Penang Office of Lands and Mines and Penang Valuation and Property Services Department – and three property development and construction companies believed to be related to the case.
The project involves a plan to bore a 6.5km tunnel below the seabed to connect north Butterworth and the island.
The tunnel is to connect Bagan Ajam, a mature suburb of about 5km from the Butterworth ferry terminal, to the end of Gurney Drive near the Pangkor Road junction on the island.
Connected to the project are three paired roads to be built on the island as a traffic dispersal system to cope with the traffic that the tunnel would bring to Gurney Drive, which is already densely developed.
The three paired roads are from Teluk Bahang to Tanjung Bungah, from Pangkor Road to the Tun Dr Lim Chong Eu Expressway – part of this stretch will be underground – and from Air Itam to the expressway near the Penang bridge.
To finance the construction, projected to cost RM6.3bil, the state government is giving payment in kind of 44.5ha of state land to the contractor, Consortium Zenith Construction.
Chief Minister Lim Guan Eng told the state assembly in 2014 that the land was valued at RM1,300 per sq ft and the project, ending with the tunnel, is scheduled for completion in 2025.
It was reported last March that RM135mil worth of land had been given to the contractor as payment to fund the feasibility studies and detailed studies.
A public-listed company announced in January 2016 that it had secured an agreement to buy 20.2ha of the land from the contractor over 10 years at RM1,300 per sq ft.
It is believed that the MACC is looking into why the state government allowed the contractor to presell state land despite delays in the project construction.
More to be called up for questioning
GEORGE TOWN: Investigations into allegations of corruption in the proposed Penang Undersea Tunnel project are expected to deepen with more people likely to be called up for questioning.
A source in the Malaysian Anti-Corruption Commission (MACC) said the focus was on the feasibility and detailed design study, which had been paid for but not completed.
“We will call in more people involved in the project to assist in investigations into the study,” the source said.
He declined to comment on whether more arrests would follow after two “Datuks” were remanded for six days yesterday to help in the investigations.
The two were remanded in George Town and Putrajaya for investigations into the corruption allegations.
The MACC source declined to share details on evidence collected that led to the remand of the two Datuks yesterday but confirmed that it was about the delayed feasibility study and detailed designs.
The feasibility, detailed design studies and environmental impact assessment was reported to cost RM305mil with RM220mil already paid. Since 2015, NGOs, government agencies, political parties and state assemblymen had asked about the payment and studies, only to be met with replies they considered unsatisfactory.
Last July, the Works Ministry and Board of Engineers Malaysia (BEM) repeatedly asserted that Penang significantly overpaid, by four times, design fees involving three roads.
Barisan Nasional strategic communications director Datuk Seri Abdul Rahman Dahlan sought the professional opinion of BEM, and it was reported that BEM replied that the detailed design costs were four times higher than the maximum allowed under the gazetted scale of fees based on the total project cost.
Last August, the state government declared that the feasibility studies would be ready by September.
In October, however, Works Minister Datuk Seri Fadillah Yusof said his ministry “had not seen a single page” of it.
MACC to make more arrests - Penang undersea tunnel project
More arrests are likely in the investigations into claims of corruption in Penang’s RM6.3bil project involving an undersea tunnel and three highways after MACC officers raided 12 more places and took statements from a dozen witnesses. They are looking into an agreement on payments to the concessionaires but Penang Chief Minister Lim Guan Eng says there was no wrongdoing and that not a single sen has been paid for the undersea tunnel project.
PETALING JAYA: Investigators looking into the allegation of corruption in the Penang undersea tunnel project are said to be thoroughly looking through the papers related to the contract for the feasibility study for the undersea tunnel.
“The agreement looks suspicious and the feasibility study for the mega project does not exceed RM305mil as announced by the state government,” sources said.
“The state government might have made a payment which is way different than the real value of the study,” they said.
On Thursday, The Star reported that the graft-busters were zooming in on the land swaps of two plots of land in Bandar Tanjung Pinang.
The sources also say that the reclaimed land for the land swaps were of high value for development. It is believed that the state JKR has set the value for the study and that allegations of misappropriation were raised when the value that was paid far exceeded the initial value.
To finance the construction of the tunnel and three paired roads on the island, projected to cost RM6.3bil, the state government is giving payment in kind of 44.5ha of state land to the contractor, Consortium Zenith Construction.
Chief Minister Lim Guan Eng had told the state assembly in 2014 that the land was valued at RM1,300 per sq ft and the project, ending with the tunnel, is scheduled for completion in 2025.
It was reported last March that RM135mil worth of land had been given to the contractor as payment to fund the feasibility studies and detailed studies. However, the study has not been completed although the land has been handed over.
A public- listed company announced in January 2016 that it had secured an agreement to buy 20.2ha of the land from the contractor over 10 years at RM1,300 per sq ft.
It is believed that the MACC is looking into why the state government allowed the contractor to presell state land despite delays in the project construction and the study.
Source: The Star Malaysia reports by MAZWIN NIK ANIS and INTAN AMALINA MOHD ALI
