There was a special investigation on Guan Eng by MACC, says key witness

A “special investigation” has led to conflicting statements from a key prosecution witness in the corruption trial of Lim Guan Eng, the former Penang chief minister. Consortium Zenith Construction Sdn Bhd (CZCSB) executive director Datuk Zarul Ahmad Mohd Zulkifli revealed during an impeachment proceeding that he did not mention Lim’s name in his statement to the Malaysian Anti-Corruption Commission (MACC) due to a special investigation involving Lim.

Zarul Ahmad explained to lead counsel Haijan Omar that the MACC officer instructed him to focus on the Shah Alam case instead of disclosing information about Lim Guan Eng. He confirmed that he contacted businessman G. Gnanaraja in July 2017 to discuss setting up a special purpose vehicle (SPV) called Bumi Muhibbah Capital Holdings Sdn Bhd to channel bribe money to Lim.

When questioned about a payment of RM15 million deposited into the Bumi Muhibbah account for Gnanaraja, Zarul Ahmad admitted to the payment being made for settling a case with Prime Minister Datuk Seri Najib Razak. However, he denied that the SPV was used to pay a bribe to Lim Guan Eng, stating that the money was intended for Najib, not Lim.

Zarul Ahmad acknowledged that Gnanaraja acted as a “middleman” between him and Najib, but this role was not included in his statement with the MACC for the ongoing corruption case. He claimed that payments to Lim were made in cash and not through any SPV. The witness only realized he was deceived after the MACC started investigating Gnanaraja.

In a previous case in Shah Alam in 2019, Zarul Ahmad sued Gnanaraja for cheating him of RM19 million, which was an inducement to help drop money laundering charges. Gnanaraja pleaded guilty to an alternative charge and was fined RM230,000, while the cheating case was classified as “no further action.” The witness also admitted giving RM2 million to Gnanaraja to maintain a relationship with Najib before Lim Guan Eng’s involvement.

Despite initially denying the involvement of Lim, Zarul Ahmad eventually agreed with co-counsel RSN Rayer that Lim’s inclusion in the events was part of the “continuity” before agreeing to Rayer’s statements. He disagreed that Lim’s involvement was an “afterthought” as his name was never mentioned during the investigation into Gnanaraja.

The hearing is set to resume on May 2, where Lim Guan Eng will face charges related to soliciting bribes to secure a major undersea tunnel project. He is accused of using his position to solicit bribes and secure the project, as well as causing land belonging to the Penang government to be disposed of to companies linked to the project.