KUALA LUMPUR: A key witness in the corruption trial of Lim Guan Eng testified at the Sessions Court today that his company faced severe financial difficulties, forcing him to seek alternative funding sources for the feasibility study of the undersea tunnel project.

Consortium Zenith Construction Sdn Bhd director, Datuk Zarul Ahmad Mohd Zulkifli, said that, as a result, one of Lim’s contacts, the late Datuk Ewe Swee Kheng, agreed to assist him by promising payment for land so that his company could complete the study within the stipulated timeframe.

“At that time, my company was facing financial problems after the withdrawal of a major shareholder, Beijing Urban Construction Group. I had to seek other funds for the feasibility study of the underwater tunnel.

“Ewe mentioned that he had previously met Lim, who assured me that my company would be granted ownership of Lot 702,” the witness said during cross-examination by deputy public prosecutor Datuk Wan Shaharuddin Wan Ladin.

Zarul was testifying in proceedings aimed at challenging his credibility, as he is accused of providing contradictory statements to the Malaysian Anti-Corruption Commission (MACC) and in court concerning the fraud case of businessman G. Gnanaraja involving RM19 million related to the same undersea tunnel case.

Ewe, who was scheduled to be the 15th prosecution witness, passed away after reportedly falling from a luxury condominium unit on Jalan Kelawei, Penang, on Oct 5, 2021.

Zarul also confirmed that between November 2013 and December 2015, his company received RM79.8 million as part payment for the feasibility study.

When questioned by Wan Shaharuddin about the initial agreement between his company and the state government, Zarul confirmed that Zenith Construction was supposed to receive two plots of land, Lot 702 and Lot 713, upon completing the feasibility study.

Wan Shaharuddin: Has ownership of both plots been transferred to Datuk?

Zarul: Yes, but only partial ownership of Lot 713 has been transferred.

Wan Shaharuddin: But Datuk’s company has not completed the feasibility study yet.

Zarul: Yes, it is still incomplete.

The proceedings to challenge the witness’s credibility before Judge Azura Alwi will resume on Aug 26.

According to the first amended charge, Lim, 63, is accused of using his position as chief minister of Penang to receive a bribe of RM3.3 million.

He allegedly did this by assisting Zarul Ahmad’s company to secure the Main Roads and Tunnel Construction Project in Penang, valued at RM6,341,383,702, between January 2011 and August 2017, at the chief minister’s office in Penang.

In the second amended charge, Lim is accused of soliciting a 10 percent share of the profit from Zarul Ahmad as a fee for helping the businessman’s company secure the same project, near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City, in March 2011.

He also faces two charges related to causing two plots of land owned by the Penang state government, worth RM208.8 million, to be transferred to a developer linked to the undersea tunnel project.

These offences allegedly took place at the Penang Land and Mines Office, Komtar, on Feb 17, 2015, and March 22, 2017.

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