THE Penang government has been asked by the state Barisan Nasional to explain why it paid the contractor of the undersea tunnel and highway project for completing the three highways’ environmental impact assessment (EIA).

State BN chief Teng Chang Yeow said the cost was to be borne by the contractor, Consortium Zenith Construction Sdn Bhd.

He said the state Public Accounts Committee (PAC) report in October 2015, which was also tabled in the state legislative assembly, clearly stated that the cost of conducting the EIA for the highways was to be borne by Consortium Zenith BUCG Sdn Bhd.

The contractor was known as Consortium Zenith BUCG when it won the project via open tender in 2013, until Chinese firm Beijing Urban Construction Group (BUCG) was removed following a fatal accident at a Kuala Lumpur construction site in 2016.

“What we understand from the PAC report is, the cost would be borne by the contractor. Why, then, did the state pay for the EIA, via a 3.7 acre land swap?” he said in a press conference today at the Penang Gerakan headquarters.

The tunnel and highway project is under Malaysian Anti-Corruption Commission investigation. Two company directors related to the project have been remanded since last week to facilitate investigations.

It was reported that the state had paid Consortium Zenith RM208 million, via the land swap, for completing the EIA, which has since gained approval from federal authorities.

Chief Minister Lim Guan Eng had repeatedly said over the past week that the state government had not paid a single sen for the tunnel project, which is still at the feasibility study stage.

Teng, who is also Penang Gerakan chief, questioned why the state had transferred land to the contractor when physical work on the project had yet to start.

“There was news that 50 acres were sold by the contractor to its subsidiaries. Why was this allowed when work has not started?”

It was reported that Consortium Zenith would receive 110 acres of freehold reclaimed land in Tanjung Pinang from the state government for undertaking the multi-billion-ringgit infrastructure project.

The consortium has since set up a 40-60 joint venture, called Ewein Zenith Sdn Bhd, with developer Ewein Land to develop land in Tanjung Pinang.

In January 2016, Ewein Zenith inked a memorandum of understanding with Consortium Zenith to grant Ewein Zenith the right to buy three parcels of land, totalling 50 acres, in Tanjung Pinang to develop the City Of Dream project, featuring wellness resorts and apartments, among others.

Teng asked that the state government be “truthful” about the RM11.2 million consultancy payment to technical consultant HSSI Sdn Bhd for reviewing and certifying the claims submitted by the tunnel and highway project contractor.

He said the Penang government had said “not a single sen” was paid, but money was indeed paid to HSSI.

“Is it not lying when the DAP-led state government said not a single sen was paid, and that only land was swapped?

“Is this kind of payment not similar to the mismanagement cases exposed in the Auditor-General’s Report years ago, about how a set of screwdrivers was bought for RM224.90 when the market price was RM32?”

He said BN was not raising these questions because the coalition was against the state government’s efforts to resolve traffic congestion issues, and that it was not right to accuse BN of being unsupportive of the project.

“You can propose a project, but we have to raise questions for the purpose of checks and balances.

“We have not even put in a motion at the state legislative assembly to halt the project.”

Teng, who was state tourism exco from 2004 to 2008, said when BN proposed the Penang Outer Ring Road during its administration years ago, the opposition had questioned the project and objected to it.

“Did we accuse the opposition then of not supporting our plan to tackle traffic problems?

“They were the ones who had put in a motion at the state legislative assembly to stop the project.”

He said Penang should walk the talk as a CAT (competent, accountable, transparent) government.

“The CAT is dead and buried.”

Under MACC scrutiny so close to the 14th general election, which must be called by August, Lim has accused BN of trying to sabotage the project, and undermine and ruin the reputation of the Pakatan Harapan state administration. – January 16, 2018.