MCA and its president Liow Tiong Lai should not try to sabotage Penang’s undersea tunnel and highways project by “causing anxiety” to the main contractor and consortium undertaking the project, said the Penang government.

Liow, who is the transport minister, had recently visited China for the Asia-Pacific Ministerial Conference on Civil Aviation and a bilateral meeting with his Chinese counterpart.

He met top leaders of the China Railway Construction Corporation (CRCC) in Beijing, and issued a statement yesterday on what he learnt from the company in relation to its role in the Penang project.

CRCC is the main project contractor of the tunnel and highways project, as per the October 2013 preliminary agreement signed by representatives of the state government, Consortium Zenith-BUCG Sdn Bhd (now Consortium Zenith Construction Sdn Bhd) and CRCC.

Chief Minister Lim Guan Eng accused Liow of abusing his power internationally to pressure CRCC by relating what the Chinese construction giant had allegedly told him in Beijing.

“When did Liow become the spokesperson for CRCC?,” he asked, using the Chinese saying “gong bao si chou”, to accuse the MCA chief of using his public office to settle a personal score.

“CRCC had never contacted us, even though they are a contracting party with the state government,” he told a press conference today.

Liow said CRCC confirmed to him that the company was never a shareholder in the special purpose vehicle, Consortium Zenith; and had never contracted directly with the state government.

Liow recognised that CRCC had signed an acknowledgement of commitment and preliminary contract for the project, including performing detailed design reports for the tunnel.

He also said CRCC gave an assurance that it would deliver its commitment for current or future contracted projects as per agreed schedules and budget.

Lim also said the Penang government believed CRCC would follow through with the contract it had signed.

“The state government will hold CRCC to their contractual obligations and will seek legal advice accordingly.

“We hope Liow and MCA do not try to sabotage the project by causing anxiety to the main contractor and the consortium with MACC investigations and false information disclosed to the BN media that will cause the whole project to fail.”

The tunnel and highways project is now under Malaysian Anti-Corruption Commission (MACC) investigation. Lim and his detractors from Barisan Nasional has been engaging in an open spat since the investigation started early last month.

The BN critics had previously raised questions about the project’s contract, the land swap payments made to the consortium for work down in the highways’ feasibility and detailed design (FSDD) studies, and the shareholders involved in the consortium.

Today, after another MCA leader, Dr Wee Ka Siong, claimed that the Penang state secretary had reportedly said in March 2013 that CRCC was a shareholder in the consortium, Lim told them to leave the civil servant alone.

“Don’t drag him into this when MACC is still investigating. As a civil servant he cannot comment while the investigation is ongoing. He will explain when it is over.

 “If they want to score political points, they can come for me. The whole attack is directed at me anyway,” the DAP secretary-general said.

The state secretary chairs the state tender board, which had awarded the mega project to Consortium Zenith in 2013. Lim reiterated that the tender board had no state excos on it.

“The decision was made as the company presented the best offer, and had fulfilled all the conditions in the open tender, including the minimal capital requirement of RM381 million.

“The main thing is whether the company has RM381 million. Otherwise, it would not have won the open competitive tender. You fail the checklist (of requirements), you are out.

It was reported in 2013, that the consortium had a total paid up capital of RM4.6 billion when the deal was inked. However, the partners in the consortium had changed over the years, such as with the exit of another Chinese giant Beijing Urban Construction Group (BUCG).

Lim said when the deal was signed, the state was insistent on which company would be made the main contractor.

“When we got CRCC and legal commitments were made, we were quite secure. Even though some of the parties (in the consortium) had changed, CRCC is still there.

“This project has the backing of companies with the paid up capital of RM4.5 billion because CRCC is there. I am saying ‘companies with the backing’, not shareholders. They are two different entities.

“CRCC is the elephant, the giant in the room. That is why they have given their commitment to the project twice, both in the principle agreement and in another attached to the main agreement,” he said. – February 6, 2018.