INVESTIGATIONS by graft busters into the Penang undersea tunnel and three other projects seems to be driven by false reports published in pro-Barisan Nasional newspapers, Penang Chief Minister Lim Guan Eng said today.

Guan Eng said in a statement that the state government had been showing proof to deny reports of alleged corruption and misappropriation in the project but the papers concerned had not backed up their claims.

“For this reason, the state government expresses misgivings when MACC investigations appears to be driven by fake news in the BN media,” he said.

The DAP secretary-general reiterated that the state had never allowed a special purpose vehicle to pre-sell RM3 billion of state land to the contractor undertaking the project.

He said no sea land was reclaimed and transferred to the contractor or its nominees to build the City of Dreams project.

“It is also lies that money was paid for work done on the undersea tunnel project, that the bidding process was flawed and claims made were excessively high,” he said today.

Guan Eng also denied that that more than RM208 million was paid to the project contractor Consortium Zenith Construction, and that state public works exco Lim Hock Seng had given contradicting figures.

“Both Hock Seng and I had said that the Penang government had not paid a single sen for the undersea tunnel but had paid RM208 million for work done on the three road highway projects.

“And yet the BN media continues to harp on Hock Seng and myself giving different figures.

“Payment was made by land swap at a net development value of RM1,300 per sq ft, which is significantly higher than the current market value.

“The land swapped was not on unreclaimed sea land but existing land with land title,” he said.

Guan Eng then took MACC to task for “allowing such fake news in the Barisan Nasional media that quoted unnamed MACC sources” to continue to be printed without taking action.

He accused the mainstream media of conducting a “massive campaign of lies, falsehoods and fake news” to sabotage the project and undermine the Pakatan Harapan (PH) state government in the run-up to the 14th general election.

“What is worrying is that the fake news claim to come from sources in MACC.

“When there were disclosures making a strong allegation involving the Johor menteri besar of receiving funds of tens of millions of ringgit, the authorities had acted quickly. Why the double-standards?”

“Penang reminds MACC deputy chief commissioner Azam Baki that his comments on investigation into the under-sea tunnel and three main highways would also include those in the media, must necessarily not be based solely on reports in the BN media.

“MACC should also rely on reports raised in the independent and neutral online news media to prevent any negative perception that its investigations are driven by the fake news in the BN news media,” he said.

Guan Eng said unlike cases involving entities like the 1Malaysia Development Bhd (1MDB), Penang Regional Development Authority and Felda, the Penang government was an “open book” that has given MACC full cooperation.

“But the Penang state government will not be bullied by the BN government’s political witch hunt into the undersea tunnel and three road projects, nor bow down to dirty tactics of intimidation, fake news and abuse of power to sabotage this transport plan to alleviate traffic congestion.

“There is nothing to hide nor fear when the project is granted through an open competitive tender by the Penang Tender Committee chaired by the Penang state secretary,” he said.

It was reported that MACC is investigating the project’s agreement and land swap payment deal.

Since last week, MACC has raided, interviewed witnesses and seized documents from the state government and various parties involved and linked to the project.

Two directors from Consortium Zenith and property developer Ewein-Zenith had since been remanded to assist investigation.

Consortium Zenith and Ewein Land has a joint-venture called Ewein-Zenith Sdn Bhd that plans to develop land in Bandar Tanjong Pinang.

The land is the land swap payment to Consortium Zenith for its work on the undersea tunnel and highways project. Ewein is not directly involved with the infrastructure project. – January 16, 2018.