THE Penang government today has rejected calls to suspend infrastructure projects by Consortium Zenith Sdn Bhd’s over its link to a RM19 million corruption case involving a businessman.

Chief Minister Chow Kon Yeow said the Malaysian Anti-Corruption Commission (MACC) has completed its investigation into Zenith and its chairman Zarul Ahmad Mohd Zulkifli in relation to the case. 

“Zarul had announced that he and Zenith received letters from MACC informing them that no action will be taken (against them) after the investigation is completed.

“With that, the question (of suspending Zenith’s projects) does not arise, unless MACC thinks it has to continue with its investigation. 

“But MACC had sent them the letters, and no charges had been filed against them. As far as we (Penang) are concerned, the matter is considered closed,” he told reporters at Komtar today.

The alleged corruption case took place in 2017 when businessman M G Gnanaraja allegedly deceived Zarul to pay him RM19 million. 

Gnanaraja told the Zenith boss that he could settle MACC’s investigations into the undersea tunnel and three major roads projects that are part of the Penang Transport Master Plan.

The projects were investigated by MACC several times in recent years when Barisan Nasional (BN) was in control of the federal government.

BN leaders were critical of the tunnel project mooted by DAP-held Penang government.

The MACC investigation intensified early last year in the run-up to the general election in May.

Zarul and Ewe Swee Kheng, group managing director of Zenith’s developer partner Ewein Bhd, were remanded to assist investigations. 

Both were released without charges filed against them.

But Gnanaraja was charged in the Shah Alam Sessions Court earlier this month for cheating. He also faces 68 counts of money laundering.

Yesterday, Centre to Combat Corruption and Cronyism in a statement urged Chow to send out a strong message that the Penang government would not compromise with unethical and corrupt practices and would live up to high standards of integrity and good governance by suspending the Zenith tunnel and road projects. 

“If you look at the news reports, you will see that the charge is related to cheating Zarul into believing he could help settle the MACC investigations.

“The accused took advantage of Zarul situation to get money. The case has nothing to do with the state government or how the tender was awarded to Zenith to implement the projects,” said Chow.

He said if the first charge had nothing to do with the state, the subsequent charges faced by the businessman were unrelated to Penang.

Chow said the state is working with Zenith to finalise an agreement for work to proceed on one of the three roads this year. 

Apart from the undersea tunnel, Zenith is building the North Coast Pair Road from Tanjung Bungah to Teluk Bahang (Package 1), the Air Itam-Tun Dr Lim Chong Eu bypass (Package 2), and Persiaran Gurney-Tun Dr Lim Chong Eu bypass (Package 3).

All the three roads have received conditional approval for their environmental impact assessment reports.

Chow said the construction of Package 2 is expected to start in August. – April 17, 2019