Defense: Penang State Government Incurred No Loss in Land Swap Deal

KUALA LUMPUR, July 24 — Defense counsel in Lim Guan Eng’s corruption trial contended in the Sessions Court today that the Penang state government “never incurred any losses” when transferring two state-owned land plots to a contractor.

Lawyer Haijan Omar argued that the transfer of ownership for the two land parcels served as agreed-upon payment to Consortium Zenith BUCG Sdn Bhd — formerly owned by businessman Zarul Ahmad Zulkifli — for conducting feasibility studies on three paired roads connected to the undersea tunnel project.

Challenging the Malaysian Anti-Corruption Commission’s (MACC) findings regarding allegations of dishonest misappropriation against the former chief minister, Haijan questioned MACC investigating officer Zulhilmi Halim on whether his investigation had reached an erroneous conclusion.

Zulhilmi rejected the suggestion, testifying that ownership transfer could legally be granted to the contractor only after the company completed feasibility studies for both the roads and the main undersea tunnel project. He maintained that the Penang state government suffered losses through the transaction.

The court was reminded that in October last year, Zulhilmi testified that Penang emerged as the “losing party” in the RM6.3 billion undersea tunnel project. He previously explained that losses occurred after two land parcels, identified as Lots 702 and 713, were transferred to Zarul as a land swap to compensate for feasibility studies and detailed design plans.

Lim stands accused of using his position as then Penang Chief Minister to solicit a 10 per cent profit share from the undersea tunnel project and accepting RM3.3 million in bribes from Zarul. He also faces two charges of dishonestly misappropriating state land valued at RM208.7 million.

The trial before Judge Azura Alwi is scheduled to resume on August 3.

-NMT