Latest news with #RM19mil
The Star
27-05-2025
- Politics
- The Star
Penang undersea tunnel graft trial witness ‘compelled' to tell truth due to evidence
KUALA LUMPUR: A key prosecution witness in the Penang undersea tunnel project trial said he was compelled to tell the truth after being presented with extensive evidence and new documents by graft investigators. The witness said this was despite initially intending to exonerate former Penang chief minister Lim Guan Eng. Consortium Zenith Construction Sdn Bhd (CZCSB) former director Datuk Zarul Ahmad Mohd Zulkifli admitted he could not deny the events, even though his testimony might damage Lim's reputation. "In this case, I didn't want to involve Lim Guan Eng in anything or any investigation," he told the Sessions Court on Tuesday (May 27). He said the Malaysian Anti-Corruption Commission (MACC) presented substantial evidence from previous witnesses and documents he had never seen before, compelling him to testify truthfully. Zarul Ahmad previously testified that he felt indebted to Lim for awarding his company the project and had tried to shield Lim from investigation by bribing a businessman to halt MACC investigations. He also admitted to forging payments through his staff to conceal bribes made to Lim. "It was a measure to protect Lim and ensure there's no financial trail leading to him," he said when re-examined by Deputy Public Prosecutor Datuk Wan Shaharuddin Wan Ladin. Zarul Ahmad was questioned about discrepancies in his statements regarding payments made to influence investigations. Wan Shaharuddin asked about earlier cross-examination statements where Zarul said he paid money to protect Lim Guan Eng, while during impeachment proceedings, he said he paid RM19mil to close an investigation against him. This investigation was being conducted in connection to offences under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLA) Zarul Ahmad explained that the two were related as an AMLA investigation could lead to Lim, and he aimed to prevent that by paying to avoid a case. He then added that Lim was aware of his efforts - including payments - after he met with Lim about businessman G. Gnanaraja. Zarul clarified that he paid RM19mil to Gnanaraja, introduced to him by former minister Datuk Seri Nazri Aziz and said to be close to then Prime Minister Datuk Seri Najib Razak, to close the MACC investigation, not RM22mil as previously stated. He admitted his actions were driven by a desire to protect Lim, insisting he did not lie. Zarul Ahmad was then released from court, ending his testimony. MACC investigating officer Ng Heng Jun, who handled a previous case involving Zarul and Gnanaraja in Shah Alam, testified as the 36th prosecution witness. In the 2019 Shah Alam case, Zarul sued Gnanaraja for cheating him of RM19mil to induce dropping money laundering charges. Gnanaraja pleaded guilty to an alternative charge under the Companies Act and was fined RM230,000, while the cheating case was classified as "no further action (NFA)". A 108-page statement by Zarul to the MACC for the Shah Alam case was used in this court to impeach Zarul's credibility due to conflicting statements involving Gnanaraja. Lim, 64, faces an amended charge of using his position as Penang chief minister to solicit RM3.3mil in bribes to help Zarul secure the undersea tunnel project worth RM6.34bil. Lim allegedly committed the offence at the Penang Chief Minister's Office, Level 28, Komtar, George Town, between January 2011 and August 2017. In a second amended charge, Lim is accused of soliciting a 10% profit from the company as gratification to secure the project. The offence was allegedly committed near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City, in March 2011. Lim faces two further charges of causing two plots of land worth RM208.8mil, belonging to the Penang government, to be disposed of to two companies linked to the project. The trial before Judge Azura Alwi continues on June 24.
The Star
15-05-2025
- Business
- The Star
Open tender process was ‘staged', says prosecution witness
KUALA LUMPUR: A key prosecution witness in the ongoing trial of the Penang undersea tunnel project involving former Penang chief minister Lim Guan Eng said the purported open tender process was 'staged' for his company to secure the project, the Sessions Court heard. Consortium Zenith Construction Sdn Bhd (CZCSB) former director Datuk Zarul Ahmad Mohd Zulkifli said the project was not awarded through an open tender. He was being re-examined by deputy public prosecutor Mahadi Abdul Jumaat about the nature of the meetings between Chinese construction firm Beijing Urban Construction Group (BUCG) – a special purpose vehicle for the project – and the Penang state government. 'The project's memorandum of understanding (MOU) did not state that the project would be done through an open tender. That is the reality. 'The MOU did not mention an open tender at all; the meetings we attended with the state government showed that, although it was an open tender, it was staged for us to secure the project. 'Since the RFP (request for proposal) was prepared together with us, it gave us a head start. When the RFP was called to include other bidders, they were given a short time to prepare their submission,' he said. Zarul Ahmad noted that his company had a 'head start' since 2011. 'We were also one of the parties involved in the RFP preparation stage, so there was indeed insider information.' Zarul Ahmad also confirmed that apart from three official meetings with the state government, there were informal meetings with state officials to gather information for the RFP. Zarul Ahmad also confirmed that Lim informed him in early May 2011 about the change of the project's bidding to an open tender. Despite this, he said BUCG was still invited to attend meetings, which took place both before and after the announcement of the open tender by Lim. Zarul Ahmad also revealed that a RM19mil payment made to businessman G. Gnanaraja was for the sole purpose of stopping an investigation by the Malaysian Anti-Corruption Commission (MACC) and had nothing to do with an ongoing investigation by the Inland Revenue Board (LHDN). Last Nov 14, Zarul Ahmad testified that LHDN officers raided his home and office in 2017 at the height of public debate over the project. He also said that a large amount of cash in a safe he kept was untouched despite the LHDN and MACC raids. 'I received RM79mil from Datuk Ewe Swee Kheng for a land-swap deal for Lot 702 between 2013 and 2016. I cashed out some of the money and kept it in my office safe for emergencies, as well as the general election, as I would give contributions to those I supported. But the officers did not touch it during the raids,' he said. Lot 702 was part of a land swap agreement related to the feasibility and detailed design studies for the Penang undersea tunnel project. Ewe, who was Ewein Bhd founder and executive chairman, was due to be called as the 15th prosecution witness, but was found dead after a fall from a condominium on Oct 5, 2021, in Pulau Tikus, Penang. Lim, 64, is facing an amended charge of using his position as then Penang chief minister to solicit RM3.3mil in bribes as an inducement to assist Zarul Ahmad in securing the undersea tunnel project worth RM6.34bil. Lim allegedly committed the offence at the Penang Chief Minister's Office, Level 28, Komtar, George Town, between January 2011 and August 2017. In the second amended charge, Lim is accused of soliciting a 10% profit from the company as gratification to secure the project. The offence was allegedly committed near the Gardens Hotel, Lingkaran Syed Putra, Mid Valley City here, in March 2011. Lim, who is Bagan MP, faces two further charges of causing two plots of land worth RM208.8mil, belonging to the Penang government, to be disposed of to two companies linked to the project. The trial before Judge Azura Alwi continues on May 27.
The Star
14-05-2025
- The Star
Undersea tunnel case: RM19mil payment to businessman was to stop MACC probe, court told
KUALA LUMPUR: A key witness in the ongoing corruption trial of Lim Guan Eng revealed that a RM19mil payment to a businessman was intended solely to avoid an investigation by the graft buster, despite the businessman also being monitored by the Inland Revenue Board (LHDN), the Sessions Court heard. Consortium Zenith Construction Sdn Bhd (CZCSB) former director Datuk Zarul Ahmad Mohd Zulkifli said the payment to G. Gnanaraja, said to be close to then prime minister Datuk Seri Najib Razak, had nothing to do with the ongoing investigation by LHDN. "The assignment for Gnanaraja was just to close the anti-money laundering investigation by the Malaysian Anti-Corruption Commission (MACC) and had nothing to do with other agencies, including LHDN," he said during the re-examination by Deputy Public Prosecutor Mahadi Abdul Jumaat. Last Nov 14, Zarul Ahmad testified that LHDN officers raided his home and office in 2017 at the height of public debate over the project. He also said he was fearful as he kept a large amount of cash in his office. "I received RM79mil from Datuk Ewe Swee Kheng for a land-swap deal for a plot of state land, known as Lot 702, between 2013 and 2016. "I cashed out some of the money and kept it in my office safe for emergencies and also the impending general election, as I would give contributions to those I supported. "The cash had been there, but the enforcement officers did not touch it during the raid. "They did not search my office, only looked at documents and took them," he said, adding that the safe was "untouched." Lot 702 was part of a land swap agreement related to the feasibility and detailed design studies for the Penang undersea tunnel project. Ewe, who was Ewein Bhd founder and executive chairman, was due to be called as the 15th prosecution witness in the trial, but was found dead after a fall from a condominium on Oct 5, 2021, in Pulau Tikus, Penang. Zarul Ahmad further explained his motivations behind the substantial payment to Gnanaraja. "Although I knew paying him RM19mil was wrong, I didn't want the investigation to lead to Lim Guan Eng. "I feared a thorough investigation would expose the monetary transactions," he admitted, highlighting his desire to protect not only Lim but also himself. "In truth, I needed to safeguard Lim Guan Eng because I felt indebted to him." Zarul Ahmad also denied that his statements implicating Lim were made under duress from the MACC. "There were actually no threats from the MACC. I was the last person called after they gathered all the evidence. They presented everything to me, and I had no choice but to tell them what happened," he said. When asked about the nature of the meetings held between Chinese construction firm, Beijing Urban Construction Group (BUCG), a special purpose vehicle for the project and the Penang state government, Zarul Ahmad reiterated that the project was not awarded through an open tender, saying the processes were "staged". Zarul Ahmad: The project's memorandum of understanding did not state that the project would be done through an open tender. That is the reality. The MOU did not mention open tender at all; the meetings we attended with the state government showed that although it was an open tender, it was staged for us to secure the project. Since the RFP (request for proposal) was prepared together with us, it gave us a head start. When the RFP was called to include other bidders, they were given a short time to prepare their submission. Mahadi: It is suggested that during the open tender process, all procedures were conducted correctly and transparently, and you disagreed. Why? Zarul Ahmad: As I said, we had a head start since 2011, as we already knew the details of the project that would be tendered. We were also one of the parties involved in the RFP preparation stage, so there was indeed insider information. Then, a visit to China conducted by Penang's executive council was only for BUCG and not for other Chinese companies bidding. With this, I maintain that the appointment of Consortium Zenith-BUCG Sdn Bhd (CZBUCG) was staged. CZBUCG was a joint venture formed by CZCSB and BUCG to undertake the undersea tunnel project in Penang and was awarded the project. Zarul Ahmad also confirmed that apart from the three official meetings with the state government, there were informal meetings with state officials to gather crucial information for preparing the RFP. "My officers contacted state officials, sometimes one-on-one, sometimes in groups of two or three. These were all informal meetings to obtain the information necessary for the RFP we were tasked with," he said, adding that most of the input provided in the meetings was reflected in the RFP. For example, Zarul Ahmad mentioned the inclusion of a paired road directed by an engineer, which was recorded in the minutes, illustrating the advantage BUCG enjoyed. Additionally, he also mentioned knowledge of a concession toll not documented in the meeting minutes. "Based on the actions by the state government, including a visit to China to see BUCG, the meetings and the MOU signed, it appeared as though the project would be awarded to BUCG through something akin to direct negotiation," he added. Zarul Ahmad also confirmed that Lim informed him in early May 2011 about the change of the project's bidding to an open tender. Despite this, he said BUCG was still invited to attend meetings, which took place both before and after the announcement of the open tender by Lim. Lim, 64, is facing an amended charge of using his position as then Penang chief minister to solicit RM3.3mil in bribes as an inducement to assist Zarul Ahmad in securing the undersea tunnel project worth RM6.34bil. Lim allegedly committed the offence at the Penang Chief Minister's Office, Level 28, Komtar, George Town, between January 2011 and August 2017. In the second amended charge, Lim is accused of soliciting a 10% profit from the company as gratification to secure the project. The offence was allegedly committed near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City here, in March 2011. Lim, who is Bagan MP, faces two further charges of causing two plots of land worth RM208.8mil, belonging to the Penang government, to be disposed of to two companies linked to the project. The trial before Judge Azura Alwi continues on May 27.
The Star
06-05-2025
- Business
- The Star
Life Water to boost annual capacity with new RM19mil line at Sandakan plant
KUALA LUMPUR: Homegrown bottled water manufacturer, Life Water Bhd is setting up an additional drinking water manufacturing line at its existing Sandakan Sibuga Plant 1. In a statement, Life Water said the development forms part of the company's expansion strategy outlined in its initial public offering (IPO) prospectus. The new manufacturing line is set to begin operations in the second half of 2025 and will increase the company's annual drinking water production capacity by an additional 178 million litres. Life Water's current annual drinking water production capacity stands at 448 million litres, following the recent commencement of its Keningau Plant. Upon completion of the new line at Sandakan Sibuga Plant 1, the group's total capacity will increase to 626 million litres per annum. Life Water said the capital expenditure for this project is approximately RM19mil. Managing director Liaw Hen Kong said the upcoming line not only supports the company's growth plans but is also designed with sustainability and efficiency at its core. He highlighted that it underscores the company's commitment to adopting Industry 4.0 practices, while continuing to deliver quality drinking water to more Malaysians. 'In line with Industry 4.0 practices, the new manufacturing line will be equipped with automated systems to enhance operational efficiency. With smart control systems and energy-efficient technology in place, the company anticipates substantial utility savings — estimated at 29,700 tonnes of water and 215,424 kWh of energy per year.' 'The new line will also support our bottle light-weighting efforts, allowing us to reduce plastic usage and lower overall carbon emissions throughout the production and distribution process. These improvements are part of our broader strategy to scale up responsibly and contribute to a low-carbon, resource-efficient future,' he said.
