Penang: The Sessions Court was today informed that two pieces of land in Bandar Tanjung Pinang, Penang, were wrongfully transferred, leading to significant losses for the state government. According to Malaysian Anti-Corruption Commission (MACC) Senior Superintendent Zulhilmi Ramli, this transfer could have been avoided if there had been no early dealings between the former Penang Chief Minister, Lim Guan Eng, and two businessmen.
According to BERNAMA News Agency, Zulhilmi, who also serves as the investigating officer, identified the two businessmen as Datuk Ewe Swee Kheng, Managing Director of Ewein Zenith Sdn Bhd (EZSB), and Datuk Zarul Ahmad Mohd Zulkifli, Director of Consortium Zenith Construction Sdn Bhd (CZCSB). Zulhilmi testified that Ewe had approached Lim in 2011 to explore government lands for potential projects. Lim allegedly suggested that Ewe could acquire a state project through a land exchange method, advising him to deal with the contractor to purchase the land for Ewe's company.
The investigation revealed that Lot 702 was acquired by Ewe, with CZCSB selling the land to EZSB for RM133 million. The sale agreement stipulated that EZSB was to pay 60 percent (RM79.8 million) upfront and the remaining 40 percent (RM53.2 million) upon completion of the City of Dream (COD) development at the site.
Zulhilmi emphasized that without the prior dealings between Ewe, Zarul Ahmad, and Lim, the land would not have been transferred to Ewe, sparing the Penang government the associated losses. He noted the unusual nature of Ewe making early payments as of November 2013 to Zarul Ahmad's company, despite no guarantee of acquiring Lot 702.
The court also heard about a preliminary agreement signed on October 6, 2013, between the state government, represented by Lim, and Zarul Ahmad for the construction of three main roads and a tunnel in Penang. The agreement included a feasibility study valued at RM305.88 million, with parts of Lots 702 or 713 offered as payment.
Zulhilmi pointed out that the feasibility study for the tunnel project was incomplete, yet Zarul Ahmad's company obtained the land lots. He also noted that BUCG anticipated challenges with the undersea tunnel project from the outset, as discussed in a meeting on May 10, 2011.
The former chief minister, Lim, faces multiple charges, including abusing his position to receive a RM3.3 million bribe to aid Zarul Ahmad's company in securing the Major Roads and Undersea Tunnel Construction Project in Penang, valued at over RM6.3 billion. These offences allegedly occurred between January 2011 and August 2017 in Penang.
Lim is also accused of soliciting a 10 percent bribe from the project's future profits and faces charges related to the disposal of state-owned land valued at RM208.8 million. These offences were purportedly committed at the Penang Land and Mines Office in 2015 and 2017.
The hearing before Judge Azura Alwi is set to continue on October 29.