CEO Morning Brief

Ex-Zenith Director: No Connection Between Guan Eng and RM19m Payment to Businessman Gnanaraja

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Publish date: Tue, 05 Mar 2024, 12:59 PM
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TheEdge CEO Morning Brief

KUALA LUMPUR (March 4): A former director of Consortium Zenith Construction Sdn Bhd (CZCSB) agreed with Lim Guan Eng’s counsel Haijan Omar that when the Malaysian Anti-Corruption Commission (MACC) took his statement on Jan 18 and Sept 5, 2018, he did mention that the RM19 million money paid by his company was not meant for the former Penang chief minister.

The former director, Datuk Zarul Ahmad Mohd Zulkifli, who is testifying in his impeachment proceedings, was first shown the statement the MACC took from him, and he agreed that the statement was without any amendment or addition or implicating Lim.

Zarul Ahmad, 64, who is now on a wheelchair, agreed with Haijan that the total sum of RM19 million paid to businessman G Gnanaraja was to be paid to the then prime minister, Datuk Seri Najib Razak, to seek his assistance for the MACC to drop investigations into Zarul and CZCSB, while also maintaining the company’s good ties with Najib.

The statement he gave to the MACC was to be used against Gnanaraja, who was initially charged with cheating in the Shah Alam Sessions Court, but the businessman pleaded guilty to a lesser charge of an offence under the Companies Act 2016.

However, when Zarul tried to further explain the matter, he was prohibited to do so by Haijan.

This resulted in Sessions Court judge Azura Alwi asking Zarul to reply with either a 'yes' and 'no' while he sought to elaborate on the RM19 million — when the prosecution led by deputy public prosecutor Datuk Wan Shaharuddin Wan Ladin wanted to ask him about it.

Trial within trial following impeachment

The witness was responding in a trial within trial, following his purported conflicting testimony in Lim’s trial, where Azura had granted leave (permission) on Jan 9 for the defence to begin the impeachment proceedings against him.

Prior to this, in the main undersea tunnel graft trial, Zarul had testified that part of the RM2 million paid to Gnanaraja — which also consisted of part of the RM19 million that he and the company paid in August 2017 — was paid to Lim.

Zarul said he himself withdrew RM2 million from his own company's safe to allegedly pay Lim through Gnanaraja.

However, during the trial within trial on Monday, Zarul agreed that the payment voucher and Public Bank cheque issued by the company for RM2 million, which was cashed in and transported in two bags, was to be paid to Najib.

The witness said that was the content of his statement, which he gave to the MACC twice, and he agreed there were no additions or amendments to the statement.

However, Zarul said he had lodged a separate complaint with the MACC on another matter.

He agreed with Haijan that his company had tried to recoup the money from Gnanaraja, and they had also appointed a lawyer, as the sum paid to Gnanaraja was such a huge sum.

Zarul also agreed with Hajian that as a result of his complaint to the MACC, Gnanaraja’s 'Datuk' title was withdrawn.

Lim, 60, is alleged to have used his position as the then chief minister of Penang to receive bribes amounting to RM3.3 million by helping the company owned by Zarul to be appointed to implement a highway and undersea tunnel project in Penang worth RM6,341,383,702.

Lim allegedly committed the act between January 2011 and August 2017 at the Penang Chief Minister's Office.

For the second amended charge, Lim allegedly sought a bribe of 10% of the profits from Zarul, as an inducement to help the businessman's company to be appointed for the same project.

Lim allegedly committed the act near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City between 12.30am and 2am in March 2011.

He is also facing two charges of causing two lots of land owned by the Penang government worth RM208.8 million to be disposed of to companies allegedly linked to the undersea tunnel project in the state. The offences were allegedly committed at the Penang Land and Mines Office, Komtar on Feb 17, 2015 and March 22, 2017.

The trial resumes on Wednesday as Zarul was unwell.

Source: TheEdge - 5 Mar 2024

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