KUALA LUMPUR: Lim Guan Eng was happy when he managed to sign the Memorandum of Understanding (MOU) for the Penang undersea tunnel project in front of then prime minister Datuk Seri Najib Razak and then Chinese premier Wen Jiabao in 2011, a Sessions Court was told.

       Businessman Datuk Zarul Ahmad Zulkefli, who was a senior director of Consortium Zenith BUCG (CZBUCG) Sdn Bhd and recalled to the stand on Thursday (March 24), said Lim was happy that many had become envious about his achievement in getting the MOU signing witnessed by the two top leaders on April 28, 2011.

       Two MOUs were inked between the then Penang state government and CZBUCG’s holding company, Beijing Urban Construction Group.

       During direct examination by deputy public prosecutor Wan Shaharudin Wan Ladin, Zarul, who is a key witness in the trial, said Lim gave him a call about the MOU sometime in 2011.

       "Lim was happy for being able to sign it in front of both leaders at that time in Putrajaya," he said.

       When asked what was Lim's reaction, Zarul said he did not recall the exact words.

       "But I’m certain he was happy in getting to sign the MOU.

       "He said that many others were 'mata merah' (envious) that he got to sign it in front of the top leaders," he said.

       When asked to whom he was referring, he said, "MCA maybe.”

       When reading his witness statement in court, Zarul said he was “touched and thankful” when his company was awarded the RM6.3bil undersea tunnel project in 2013.

       “But such feelings were short-lived because the next day, my company was criticised by Barisan Nasional parties, saying Penang has awarded the project to a ‘RM2 company’,” he said.

       Although his company had the head start through his meetings with a former state leader and his involvement in the request for proposal preparation meetings before that, Zarul said it did not mean his company was certain to get the project, knowing that other companies were also shortlisted for the project's pre-qualification session.

       “I was still worried that YB Lim might influence any upcoming decision,” he said.

       To a question, Zarul said the undersea tunnel project could be done through direct negotiation if it is justifiable.

       “I don’t think there was anything wrong in awarding this project through direct negotiation if it was urgently needed.

       “This undersea tunnel is needed to resolve Penang’s traffic jam, so awarding it through direct negotiation would be justifiable,” he said.

       Although the project was eventually awarded to his company, Zarul said Lim made a “U-turn” during initial discussions and said the project would go through an open tender.

       The trial before Sessions Court judge Azura Alwi will resume on April 1.