PENANG Chief Minister Lim Guan Eng and state Barisan Nasional chairman Teng Chang Yeow’s spat in the media over the tunnel and three highways project has led to a suit.

Guan Eng said he would instruct his lawyers to initiate legal action against the Gerakan leader for accusing him of lying that the Penang government never paid a single sen for the tunnel project.

Teng has recently questioned if the state government had lied about the matter, citing a November 2017 reply by state public works exco Lim Hock Seng at the state legislative assembly that stated that RM219.9 million has been paid for work on the project so far.

The breakdown of the sum paid included RM208.7 million via land swap to the project contractor Consortium Zenith Constructions Sdn Bhd, and RM11.2 million cash to independent engineering consultant HSS Integrated Sdn Bhd, which was appointed by the state to verify and certify the contractor’s claims and designs.

“Teng refused to understand what Hock Seng had said. He has based his accusation on statements that Hock Seng has denied making.

“Hock Seng never said money had been paid for the tunnel. Clearly Teng was not telling the truth,” he said, adding that the state government would only “consider paying” the contractor for the tunnel after the study was finished.

“Since Teng has said I can sue him, I hope he will not wriggle out of it. I will ask my lawyers to act,” he told a press conference today at Komtar.

Guan Eng will be taking legal action against Teng for saying that he had lied when he earlier said not a single sen was paid for the tunnel, even though the feasibility study is 92% complete.

The BN leader had made the remark in a statement on Tuesday. He accused the state government, without naming Guan Eng, for lying about the payment.

But the chief minister yesterday challenged Teng to be courageous to name him as the liar, so he could take him to court and show proof.

Guan Eng said taking the matter to court was important to clear up the issue once and for all because the project was now under Malaysian Anti-Corruption Commission (MACC) investigation.

MACC is investigating the project and its contract. The commission has remanded two directors from Consortium Zenith and property developer Ewein Zenith to assist investigation.

Ewein Zenith has a contract with Consortium Zenith to develop land to be awarded by the state government as payment for the mage infrastructure project.

“Since you (Teng) have control over the press, they will print your statements and not the state’s; we will go to court to clear it up.

“This is important as the MACC has open investigation based on fake news and BN claims. We have tried explaining but the BN media will not publish our statements.

“No shame. Lie through their teeth but no shame. ‘Tak kenal maksud malu’ (They don’t know the meaning of shame. It never crossed their minds,” Guan Eng said.

Meanwhile, the chief minister also reiterated that the state only paid RM208 million via land swap for work completed for the three highways, which had obtained EIA (environmental impact assessment) approval.

He said the payment covered the highways’ feasibility study, designs and EIA, as well as other components.

“That’s what we had paid for through the contractor. The EIA cost was borne by the contractor but when approval was obtained, we would have to pay according to the contract.

“If the state had to pay for the EIA, we would have had to make extra payment. It is the contractor that has to pay the experts it appointed to do the work.

“The state only pays the contractor and HSSI for the checking and verification of the contractor’s claims,” he said.

He was asked to explain Teng’s query on the October 2015 state Public Accounts Committee (PAC) Report, that stated that the cost of conducting the EIA for the highways was to be borne by the contractor.

In a separate press conference earlier today, Teng said Guan Eng’s challenge was “laughable and ludicrous”.

“Guan Eng is the chief minister and head of the state administration. He is answerable to the people on all the decisions he makes.

“Whether his name is mentioned or otherwise, it makes no difference. Since he is fond of me naming him, I will do so in my press conference from now onwards,” he said.

Teng also said he was ready to face Guan Eng in court to seek the truth, and would continue to speak out despite the legal threats.

“I have instructed my lawyers to study Guan Eng’s accusation that I lied on this issue.

“I reserve my legal rights to take him to court. Let the people of Penang judge who is lying!” – January 18, 2018.