PENANG has given its full cooperation to the Malaysian Anti-Corruption Commission in the ongoing probe into the state’s undersea tunnel project, said Chief Minister Lim Guan Eng, who questioned a series of raids on the island yesterday.

MACC yesterday raided the offices of the state’s Public Works Department, State Secretary, Office of Lands and Mines, and Valuation and Property Services Department, as well as three property development and construction companies.

Lim said the anti-graft agency had been investigating the matter since 2016, with the state giving its full cooperation from the start.

He said MACC had already seized many documents, and asked why yesterday’s raids were needed.

“I am surprised why the investigations are yet to be completed. They started this in 2016, and now, I understand that it is ongoing.

“I am surprised because the project was awarded via open tender, which was overseen by international accounting firm KPMG. The decision (on the tender award) was made by the state exco.

“I hope this is not due to the election cycle or attacks by pro-Barisan Nasional forces against the state government,” he told a press conference today.

MACC today remanded two company directors at the George Town and Putrajaya magistrates’ courts, in relation to its investigations.

The tunnel project, undertaken by Consortium Zenith Construction Sdn Bhd after winning an open tender in 2013, comes in two parts.

Apart from a 7.2km tunnel linking Butterworth on the mainland and Persiaran Gurney on the island, it also involves the building of three major roads.

They are the 10.53km Tanjung Bungah-Teluk Bahang paired road in the northern coast; the 5.7km Tun Dr Lim Chong Eu Expressway-Air Itam bypass; and, the 4km Tun Dr Lim Chong Eu Expressway-Persiaran Gurney bypass.

The project was first presented to Penang folk in the run-up to the 2013 general election.

It has been strongly objected to and criticised by BN.

Over the years, several parties have lodged reports with MACC over the project.

The latest report was lodged by Parti Cinta Malaysia vice-president Huan Cheng Guan, a vocal critic of the DAP-led Penang administration, at MACC’s headquarters in Putrajaya.

Lim said the state was unaware of the raids yesterday until news on the operation broke later in the day.

He said the state government did not contact anyone as it wanted to allow MACC to investigate freely.

He also said Penang would proceed with the project, unless instructed otherwise by the courts.

“The project was awarded via open tender. It is still a valid contract.

“Environmental impact assessment approvals have also been given for the three highway projects.”

Lim asked why there was so much publicity on the tunnel project, but not the land scandal involving federal body Penang Regional Development Authority, which allegedly sold government land in Nibong Tebal to a private company in 2015 at a RM15.2 million loss.

“That is an older case than the tunnel project. I know MACC investigated, but why is there no similar level of publicity?

“They were supposed to build low-cost homes on that land, but until today, no such plans have been submitted.

“Why is it not in the news on TV and the front pages of the papers?”

A senior executive director of a company with the title of “Datuk” was one of those remanded today by MACC.

The man, attached with Consortium Zenith Construction, was brought to court at 9.50am for the remand proceeding.

Magistrate Fatina Amyra Abdul Jalil granted MACC a remand order to detain the 59-year-old from today to Monday, for a total of six days, to facilitate investigations under Section 16 of the MACC Act 2009.

The man was detained at 8.45pm yesterday after giving his statement at the MACC headquarters in Putrajaya.

The other individual, a property development firm’s deputy chairman from Penang, has also been remanded for six days, until Monday.

The remand was granted by George Town court deputy registrar Muhammad Azam Md Eusoff.

The tunnel project, worth a total of RM15 billion, is part of the Penang government’s transportation plan, aimed at tackling traffic congestion in the state. – January 10, 2018.