MACC officer tells court Penang Tunnel bidder allegedly gained early edge through private briefings

A MALAYSIAN Anti-Corruption Commission (MACC) investigating officer has told the Sessions Court in Kuala Lumpur that Consortium Zenith BUCG Sdn Bhd (CZBUCG) allegedly benefited from early access to project information during the Penang undersea tunnel tender process, which he said placed the company in a stronger position than competing bidders.

Investigating officer Zulhilmi Ramli, 34, testified that his investigation indicated CZBUCG  had received both technical and financial advantages after participating in separate briefings with the Penang state government during early-stage discussions on the multibillion-ringgit project.

“In my investigations, Consortium Zenith BUCG Sdn Bhd received technical and financial advantages. This follows, [since] there is discussion between the company and the Penang government without the attendance of others who may bid for the tender,” The Edge cited him telling the court today.

He added that the company’s position was further strengthened during the initial phase of the project, noting that procurement arrangements had first begun as direct negotiations before being converted into an open tender exercise.

“Initially, the project was awarded via direct tender. However, the Penang government reverted to an open tender,” he said.

Zulhilmi, who is the 38th and final prosecution witness in the Penang undersea tunnel graft trial, said his findings were based on minutes of meetings held on 10 May, 19 May and 11 July 2011, as well as interviews with witnesses, including CZBUCG director Datuk Zarul Ahmad Mohd Zulkifli.

He also agreed under cross-examination by counsel Haijan Omar, representing former Penang chief minister Lim Guan Eng, that the accused had not attended the three meetings in question.

The investigating officer further told the court that he had not obtained draft request-for-proposal documents for the project and instead relied on meeting minutes and witness statements to support his conclusions.

“This is over the cost and forecast… and this provided the company (CZBUCG) to offer a lower price compared to other companies who tendered for the project. Hence, CZBUCG received the technical advantage and hence won the tender,” he said.

The court also heard that the project’s early framework involved cooperation with Beijing Urban Construction Group, a Chinese state-owned entity, following memoranda of understanding signed with the Penang government before the process shifted into an open tender system.

Zulhilmi said his investigation papers covered multiple strands, including alleged false claims, feasibility study and design issues, corruption allegations, abuse of power, and a related probe involving Datuk G Gnanaraja.

He added that upon taking over the investigation, he recommended that charges be brought against Lim Guan Eng, marking a change from an earlier recommendation of no further action.

The court was also referred to earlier testimony by prosecution witness Zarul Ahmad Mohd Zulkifli, who said his company had a distinct advantage during the bidding process and had received indications he interpreted as preferential treatment.

Zarul had previously told the court he initially acted as a broker for BUCG and was encouraged to submit a bid for the tunnel project, despite the process being opened to competitive tender.

He also testified that Lim had expressed preference for a tunnel over a third bridge, citing reduced federal approval requirements due to Penang being an opposition-led state at the time.

The undersea tunnel project, alongside three major road expansion schemes, was conceived as part of a long-term plan to ease traffic congestion on Penang island, based on studies dating back to the 1990s.

The defence also questioned whether federal authorities had rejected the tunnel proposal, a matter the witness said he was not aware of.

The MACC officer confirmed that multiple investigation papers had been opened covering procurement irregularities, alleged misuse of power, and related aspects of the case.

Lim Guan Eng, a former finance minister and current Bagan Member of Parliament, is on trial for allegedly using his position as then Penang chief minister to solicit a 10 per cent cut of profits from the RM6.3 billion project in exchange for helping secure the contract for the company.

He is also accused of receiving RM3.3 million in alleged kickbacks, including RM2 million said to have been paid in August 2017 through intermediaries.

Separately, he faces additional charges of dishonest misappropriation of state land involving two parcels worth a combined RM208.75 million, linked to companies associated with the project.

The trial before Sessions Court judge Azura Alwi continues tomorrow. - June 4, 2026