Penang Landslide occured days after remedial works started


Cracks at Tanjung Bungah site began in June, Commissioner of Inquiry told

Expert panel: (From right) Yeo, Dr Gue and Prof Ramli arriving for the inquiry.

GEORGE TOWN: A temporary structure supporting a worksite slope in Tanjung Bungah developed cracks in mid-June, a Commissioner of Inquiry heard.

Soil Mechanic Sdn Bhd director Cheah Wing How, who was a sub-contractor of the project where a landslide killed 11 workers, said he was informed by a clerk to carry out remedial works as the granite wall had cracked.

Cheah said his team left after completing the granite works and soil-nailing works to enhance the stability of the temporary slope.

There was, however, no mention when they completed the works.

“When we returned, we found there were pile cap excavation works carried out near the slope.

“We believe there was soil movement that resulted in the cracks on the granite wall.

“We were carrying out remedial works and 11 days into the job, the landslide happened,” said Cheah, who has 20 years’ experience in the field.

Cheah was testifying on the first day of the public hearing into the landslide tragedy by the State Commission of Inquiry (SCI) at City Hall in Esplanade yesterday.

On Oct 21, last year, a landslide hit the affordable condominium project made up of two 49-storey towers with 980 units in total within the Permai Village township near the Tunku Abdul Rahman University College.

Among the 11 killed was site supervisor Yuan Kuok Wern, 27.

During the proceeding, the Penang Island City Council (MBPP) also presented eight drone videos that showed the slope and the surrounding area after the tragic incident.

SCI chairman Datuk Yeo Yong Poh said they planned to carry out a site visit tomorrow.

He also fixed the hearing to continue until Monday, followed by Feb 8 to Feb 11, March 24 to March 28 and April 18 to 25.

Other members of the commission are geotechnical expert Datuk Dr Gue See Sew and forensic geo-technical engineer from Universiti Teknologi Malaysia Prof Ramli Nazir.

The SCI was gazetted on Dec 21 last year to investigate the landslide after Yang di-Pertua Negri Tun Rahman Abbas gave his consent on Dec 6, 2017, for the appointment of the members of the commission and its terms of reference.

Meanwhile, Penang Citizens Awareness Chant Group (Chant) adviser Yan Lee said the entrance to the Teik Granite Quarry, which is located near the site where the landslide occurred, should be fenced up.

“Anyone can just walk into the site as the safety measure is not up to mark.

“We have voiced our concern to the Penang Island City Council, the Department of Environment as well as the Land and Mines Department,” he said yesterday.

By Chong Kah Yuan and Jo-Leen Wong The Star

Related Links:

Contractors in jitters over temporary slopes – Nation

Boulders slid down hill prior to disaster – Nation

//players.brightcove.net/4405352761001/default_default/index.html?videoId=5719810415001
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Tough questions on Penang turnel project; Engineering Consultant arrested in probe


 

 

 

In-depth query: A screen grab of the video where Dr Wee demanded explanations over the controversial Penang undersea tunnel.
Dr Wee, is trained as a civil engineer has a Master’s in traffic engineering and a PhD in transportation planning, believed to have worked as an Environmental Impact Assessment and Traffic Impact Assessment consultant for more than a decade. He is currently a minister in the
Prime Minister’s Department
.

Wee poses more questions to Guan Eng on tunnel project

Wee raises doubt over paid-up capital and ability of SPV – Nation

Lim: Contract between CRCC and Penang govt legally binding …

PETALING JAYA: Datuk Seri Dr Wee Ka Siong threw hard-hitting questions at the Penang government, demanding an explanation for the controversial undersea tunnel project.

The MCA deputy president raised major concerns in videos uploaded in two parts to MCA’s YouTube channel.

He zeroed in on the changes in the paid-up capital of a special purpose vehicle (SPV) and how two Chinese construction giants have “disappeared” from the SPV shareholding.

He also touched on the state government’s “agreement” with China Railway Construction Corpo­ration Ltd (CRCC) and Penang’s insistence that no money was paid for the project.

In the videos, also uploaded on Dr Wee’s Facebook page, the Minister in the Prime Minister’s Department had a whiteboard to his left showing the changes in the shareholding while a television screen to his right displayed various documents.

Dr Wee wanted Penang Chief Minister Lim Guan Eng to clarify why the SPV Consortium Zenith Construc­tion Sdn Bhd’s paid-up capital was reduced from RM4.6bil to RM70.5mil.

He said while Beijing Urban Construction Group (BUCG) was no longer a shareholder in the SPV, CRCC was never in the picture.

Dr Wee said back in March 4, 2013, the state government’s official newsletter Buletin Mutiara published an article quoting state secretary Datuk Seri Farizan Darus as saying the SPV had a paid-up capital of RM4.6bil, with Zenith Construction Sdn Bhd and CRCC jointly holding a 70% stake in it.

“We are in great shock because just days ago, CRCC went on record to deny ever being a shareholder and developer of the undersea tunnel SPV.

“Without the participation of CRCC and BUCG, the actual capital of the other component SPV back then is only RM8.2mil,” said Dr Wee, who is trained as a civil engineer and has a Master’s in traffic engineering and a PhD in transportation planning.

He, however, said the SPV had a total paid-up capital of RM70.5mil.

Dr Wee added that currently, Zenith Construction has a 47.12% equity in the SPV, Juteras Sdn Bhd (0.75%); Kenanga Nominees (Tempatan) Sdn Bhd (38.92%) and Vertice Bhd (formerly known as Voir Holdings Bhd, 13.21%).

He also revealed that Consortium Zenith BUCG Sdn Bhd was only registered on July 5, 2012, one day before the state government invited the consortium to submit a request for proposal (RFP).

“Chief Minister, you may argue that they formed the consortium just one day before to make it to the tender.

“But bear in mind your state secretary said the consortium was selected based on the financial and technical strength of CRCC and BUCG,” he said, adding that Zenith Construction was only less than three months old when it was then invited to participate in the pre-qualification for the tender.

Dr Wee also said that Acknowled­gement of Commitment signed by the state government with CRCC was not a legally binding document.

“Where is the stamping of documents as required and which is the Court of Arbitration to arbitrate disputes?” he asked.

Dr Wee also questioned Lim’s stand that not a single sen was paid when state exco member Lim Hock Seng replied in the state assembly on March 19 last year that a land swap deal worth RM208mil was identified.

“The said land has been developed and sales of properties for the City of Dreams (which is built on the land) are ongoing. Aren’t you aware of that?

Dr Wee also urged Lim to give a detailed breakdown of how Consor­tium Zenith reaped a significant after-tax profit of RM60mil for the financial year that ended on Aug 31, 2015, when it had only conducted studies and had yet to start any construction work.- The Star

Engineering Consultant arrested in tunnel probe 

‘Datuk Seri’ remanded for five days in Penang tunnel probe – Nation 

Datuk Seri remanded in probe

Magistrate Ainna Sherina Saipolamin allowed the 62-year-old “Datuk Seri” to be held in custody until Jan 29.

Engineering consultant remanded for five days – Nation

 

In custody: The consultant being taken out of the magistrate’s court in Putrajaya. — Bernama

 

PETALING JAYA: A senior engineering consultant in her 50s is the latest to be detained in connection with the probe over controversies surrounding the Penang undersea tunnel project.

The consultant is believed to have forged claim documents for the feasibility studies valued at RM305mil for the mega project of three main roads and an undersea tunnel to the state government, said a source familiar with the Malaysian Anti-Corruption Commission (MACC) investigation.

The woman is expected to be remanded at the Putrajaya magistrate’s court today.

She was arrested at MACC headquarters in Putrajaya at 6.10pm yesterday after her statement was recorded.

“The investigators are trying to determine if other individuals were involved in the preparation of the falsified documents,” the source added.

The engineering consultant is the third person to be arrested in MACC’s investigations into the Penang undersea tunnel project.

Two high-ranking Datuks of development and construction companies were earlier arrested on Jan 9 before being remanded for six days beginning Jan 10.

The remand was then extended for another five days from Jan 15.

They were released on MACC bail of RM200,000 each on Jan 19 by the Putrajaya magistrate’s court.

On Monday, MACC deputy chief commissioner (operation) Datuk Seri Azam Baki had said that more individuals would be hauled up over the project.

The RM6.3bil mega project includes building the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in north Butterworth, 10.53km North Coastal Paired Road from Tanjung Bungah to Teluk Bahang, 5.7km Air Itam-Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive-Tun Dr Lim Chong Eu Expressway bypass.

The MACC has since recorded statements from more than 70 people and visited more than 40 premises in the course of their investigation.

By Royce Tan The Star

State govt can only hold SPV liable, says Wee

PETALING JAYA: Although Penang Chief Minister Lim Guan Eng has reiterated that not a single sen was paid for the feasibility study of the undersea tunnel, the fact remained that it was paid in kind, said Datuk Seri Dr Wee Ka Siong.

Dr Wee, who is MCA deputy president, said the crux of the problem was that the state government had no contractual nexus with the contractor.

“The state government can only hold the special purpose vehicle (SPV) liable, not the contractor.

“Don’t confuse the people with the SPV and the contractor. SPV means you can hold it liable.

“If a contractor is subsequently awarded by the SPV, that’s between the contractor and the SPV.

“If the SPV fails to pay the contractor, the contractor has no obligations (to construct),” he said.

He added that he had conducted a comprehensive research and he knew what happened.

“I welcome this project, but it must be carried out in a proper manner. This is what I want.

“Don’t blame others. If at all you need to blame somebody, it is your SPV that you appointed.

“They keep on delaying the report, not us. We have no say in the report and we’ve not even seen it,” said Dr Wee.- The Star


Related Links:

 Difficult questions over tunnel sea project has party in a tight spot …

 

Contract value of roads increased significantly, says See-To – Nation …

 

Penang has enough roads and linkages, say activists – Nation |



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PTMP: Losses making fashion company in Penang Undersea Tunnel Project



Filepic: PenangPropertyTalk

Did the Penang Govt do a “bait and switch” on the Penang people?

That was the question posed by MCA deputy president Datuk Seri Dr Wee Ka Siong after it was revealed that a local fashion company has been identified as the shareholder of a special purpose vehicle (SPV) for the RM6.3bil Penang undersea tunnel project.

He questioned how the DAP-led Penang state government can claim that it is normal for a loss-making local fashion company to be suddenly involved in building a complicated multi-billion undersea tunnel as its first project as part of normal buisness diversification process.

Shareholdings disclosure of the company on Bursa Malaysia. Pic: mca.org.my
Shareholdings disclosure of the company on Bursa Malaysia. Pic: mca.org.my

Shareholdings disclosure of the company on Bursa Malaysia. Pic: mca.org.myShareholdings disclosure of the company on Bursa Malaysia. Pic: mca.org.my

“Taking aside the fact that the fashion company has reported losses in each of the past 3 financial quarters and their last financial statement submitted to Bursa Malaysia on 29 Nov 2017 showed that the company had cash balances of RM1,7 million and short-term loans of RM16.5 million, I believe the Penang Government is completely missing the point.

“The main point is that the Penang Govt had reassured and promised to the people of Penang in March 2013 when the project was awarded that the Special Purpose Vehicle (SPV) company had strong financial backing of RM4.6 billion and had deep experience in construction,” Wee highlighted, in a statement posted on MCA’s website.

He points out that five years later there was nothing to show except for the millions spent on uncompleted feasibility studies.

“Did the DAP government lie to the public and made a bait and switch?” he asked.

Meanwhile, political analyst Datuk Eric See-Toh has revealed that the project never awarded on open tender.

“This is an interesting development as the project was never awarded based on Open Tender as DAP frequently claims.

“It was done via a Request for Proposal (RFP) exercise where a company was then selected for further negotiations before agreement signing,” he noted in a recent Facebook posting.

“The Penang Government should release the minutes of why the winner was selected and why others were rejected,” he urged the DAP-led Penang government to give a proper explanation over how this could have happened.

This is important, he stressed as the result has clearly led to “such lop-sided terms that is in favour of the contractor and at the expense of the people of Penang” which is the reason for the Malaysian Anti-Corruption Commission (MACC) investigation now.

“Allowing many to participate in an open RFP is not the most important question but how and on what basis the final party was selected and the negotiations after that,” he added.

“Taking aside the fact that the fashion company has reported losses in each of the past 3 financial quarters and their last financial statement submitted to Bursa Malaysia on 29 Nov 2017 showed that the company had cash balances of RM1,7 million and short-term loans of RM16.5 million, I believe the Penang Government is completely missing the point.

“The main point is that the Penang Govt had reassured and promised to the people of Penang in March 2013 when the project was awarded that the Special Purpose Vehicle (SPV) company had strong financial backing of RM4.6 billion and had deep experience in construction,” Wee highlighted, in a statement posted on MCA’s website.

He points out that five years later there was nothing to show except for the millions spent on uncompleted feasibility studies.

“Did the DAP government lie to the public and made a bait and switch?” he asked.

Meanwhile, political analyst Datuk Eric See-Toh has revealed that the project never awarded on open tender.

“This is an interesting development as the project was never awarded based on Open Tender as DAP frequently claims.

“It was done via a Request for Proposal (RFP) exercise where a company was then selected for further negotiations before agreement signing,” he noted in a recent Facebook posting.

“The Penang Government should release the minutes of why the winner was selected and why others were rejected,” he urged the DAP-led Penang government to give a proper explanation over how this could have happened.

This is important, he stressed as the result has clearly led to “such lop-sided terms that is in favour of the contractor and at the expense of the people of Penang” which is the reason for the Malaysian Anti-Corruption Commission (MACC) investigation now.

“Allowing many to participate in an open RFP is not the most important question but how and on what basis the final party was selected and the negotiations after that,” he added.

“According to a MACC source, the investigation was zeroing in on the tender process and appointment of the company to carry out the feasibility study for the (Penang Tunnel) project.” said a report today. This is an interesting development as the project was never awarded based on Open Tender as DAP frequently claims. It was done via a Request for Proposal (RFP) exercise where a companywas then selected for further negotiations before agreement signing.

The Penang Government should release the minutes of why the winner was
selected and why others were rejected as well as the minutes of the attendees and what was discussed during the negotiations with the winner prior to the final agreement that led to such lop-sided terms that is in favour of the contractor and at the expense of the people of Penang. Allowing many to participate in an open RFP is not the most important
question but how and on what basis the final party was selected and the negotiations after that.

Eric See-To. http://www.freemalaysiatoday.com/…/undersea-tunnel-probe-m…/

Here’s an explanation between RFP and Request for Tender/Quote and other methods:

http://thoughtbubble.com.au/…/whats-the-difference-between…/

Image may contain: text

 

Source: Malaysian Digest: http://www.malaysiandigest.com/
Related Links:

Politicians on MACC radar over tunnel payoffs – Nation

Video:  //players.brightcove.net/4405352761001/default_default/index.html?videoId=5714956846001

“There were politicians who received a few hundred thousand ringgit and those who took millions.

“Investigators are digging in on the extent of the misconduct and where the payments took place.

“It is believed that this is also related to the two land swaps
done as payment for the feasibility study,” said a source, who declined
to elaborate.

Feasibility study cost just doesn’t add up, says Wee – Nation

Undersea project: Fashion apparel just an investor not contractor, says Lim

More arrests likely in undersea tunnel probe – Nation

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In troubled waters: An artist’s impression showing where the tunnel project will start on the island.   Land swap under…

Moving forward with affordable housing


One way to solve housing shortage problem is to build more houses.

“If we take a look at countries with commendable housing policies such
as Singapore and Hong Kong, we notice that the government plays a very
important role in building and ensuring a sufficient supply of housing
for their people.”

THE issue of affordable housing has been a hot potato for many countries, especially for a nation with a growing population and urbanisation like ours.

In my previous article, I mentioned that there was a growing shortage of affordable housing in our country according to Bank Negara governor Tan Sri Muhammad Ibrahim. The shortage is expected to reach one million units by 2020.

According to Bank of England governor Mark Carney, one of the most effective ways to address the issue is to build more houses. There are good examples in countries like United Kingdom, Australia and Singapore, which have 2.4, 2.6 and 3.35 persons per household respectively.

In comparison, the average persons per household in our country is 4.06 person, a ratio which Australia had already achieved in 1933! To improve the current ratio, we need to put more effort into building houses to bring prices down.

If we take a look at countries with commendable housing policies such as Singapore and Hong Kong, we notice that the government plays a very important role in building and ensuring a sufficient supply of housing for their people.

For example in Singapore, their Housing and Development Board (HDB) has built over one million flats and houses since 1960, to house 90% of Singaporeans in their properties. In Hong Kong, the government provides affordable housing for lower-income residents, with nearly half of the population residing in some form of public housing nowadays. The rents and prices of public housing are subsidised by the government and are significantly lower than for private housing.

To be on par with Australia (2.6 persons per household), our country needs a total of 8.6 million homes to house our urban population of 22.4 million people. In other words, we need an additional 3.3 million houses on top of our existing 5.3 million residential houses.

However, with our current total national housing production of about 80,000 units a year, it will take us more than 40 years to build 3.3 million houses! With household formation growing at a faster rate than housing production, we will still be faced with a housing shortage 40 years from now.

Therefore, even if the private sector dedicated all its current output to build affordable housing, it will still be a long journey ahead to produce sufficient houses for the nation. It is of course impossible for the private sector to do so as it will be running at a loss due to rising costs of land and construction.

In view of the above, the government has to shoulder the responsibility of building more houses for the rakyat due to the availability of resources owned by the government. Land, for example, is the most crucial element in housing development. As a lot of land resources are owned by government, they must offer these lands to relevant agencies or authorities to develop affordable housing.

I recall when I was one of the founding directors of the Selangor State Development Corp in 1970s, its main objectives was to build public housing for the rakyat.

However, today the corporation has also ventured into high end developments in order to subsidise its affordable housing initiatives. This will somehow distract them from focusing on the affordable housing sector.

Although government has rolled out various initiatives in encouraging affordable houses, it is also important for the authorities to constantly review the original objectives of the relevant housing agencies, such as the various State Economic Development Corporations, Syarikat Perumahan Negara Bhd, and 1 Malaysia People’s Housing Scheme, to ensure they have ample resources especially land and funding to continue their mission in building affordable housing.

A successful housing policy and easy access to affordable housing have a huge impact on the rakyat. It is hoped that our government escalates its effort in building affordable housing, which will enhance the happiness and well-being of the people, and the advancement of our nation.


Datuk Alan Tong has over 50 years of experience in property development. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.
By Alan Tong

Penang undersea tunnel project scrutinized by the Malaysian Anti Corruption Commission (MACC)


In troubled waters: An artist’s impression showing where the tunnel project will start on the island.

 

 

Land swap under MACC scrutiny

PETALING JAYA: The Malaysian-Anti Corruption Commission (MACC) probe into the controversial Penang undersea tunnel is focused on land swaps that were made for the feasibility and detailed design study which has yet to be completed.

Sources said investigators are scouring documents involving two plots of land – Lot 702 and Lot 713 in Bandar Tanjung Pinang – with a size of 1.48ha and 2.31ha respectively.

The value of Lot 702 is around RM135mil while Lot 713 is around RM160mil.

It is learnt that both parcels of land have since been mortgaged to banks to obtain financing. The state government has also authorised planning permission on both parcels of lands.

“The state government paid the consultant for the feasibility studies by means of two land swaps. The cost for the feasibility study is around RM305mil.

“It has become an issue on why the study cost was inflated so much when it should have been an estimated RM60mil,” sources said, adding that determining the inflation and the reason behind it were among the challenges faced by the investigating team.

The sources also said that the graft-busters have their sights targeted on “somebody” who has been enjoying kickbacks and entertainment from the deal.

The feasibility and detailed design study is for the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in Seberang Perai.

It is part of the RM6.3bil mega project comprising a 10.53km North Coastal Paired Road (NCPR) from Tanjung Bungah to Teluk Bahang, the 5.7km Air Itam–Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive–Tun Dr Lim Chong Eu Expressway bypass.

Yesterday, the investigating team also questioned four officers from several state government agencies on the land swaps.

Sources added that the anti-graft agency also raided a property agency office in Penang and carted various documents away. It is learnt the chief executive officer of the company was not around during the raid.

MACC deputy chief commissioner Datuk Seri Azam Baki said his investigating team has yet to call in any witnesses for the case as they are still conducting a thorough study on the seized documents.

He added that the officers would still be obtaining more documents from the companies involved and also from the state government.

 

Two bosses of construction firms held for six days as MACC investigates project

Datuks’ remanded in tunnel probe

Taken away: Officers escorting one of the men out of the courthouse in Putrajaya.

MACC digs deeper

A swap involving two parcels of land worth close to RM300mil is in the spotlight as the MACC intensifies investigations into claims of corruption in Penang’s undersea tunnel project and several accompanying highway projects. Two ‘Datuks’ have been remanded and several key officials in companies and agencies involved in the project have been questioned. But Chief Minister Lim Guan Eng says the project will go on.

GEORGE TOWN: Chief Minister Lim Guan Eng says the undersea tunnel project, now the subject of a corruption investigation, will proceed unless there is a court order to stop it.

He said he was baffled by yet another investigation into the project as the Malaysian Anti Corruption Commission (MACC) had been conducting an investigation into the RM6.3bil mega project comprising the tunnel and three other highways since 2016.

“What are they investigating now? Is it because of the looming general election?

“The project was awarded via an open tender overseen by international accounting firm KPMG.

“Still, I have instructed everyone involved to give their full cooperation to the MACC in its investigation as we have nothing to hide,” said Lim at a press conference at Komtar yesterday.

On Tuesday, graft-busters arrested two “Datuks” involved in the controversial Penang undersea tunnel project to help in investigations into claims of corruption.

The duo, who were picked up in Putrajaya and Penang, have since been remanded for six days to facilitate the probe.

The anti-graft agency raided the offices of four state government agencies – the Penang Public Works Department, Penang State Secretary, Penang Office of Lands and Mines and Penang Valuation and Property Services Department – and three property development and construction companies – Ewein Zenith Sdn Bhd, 555 Capital Sdn Bhd and Consortium Zenith Construction Sdn Bhd’s Penang office.

MACC officers also questioned several officers in charge of the respective agencies and companies. Sources familiar with the investigation said the probe into the undersea tunnel project was also zooming in on land swaps.

Ewein Zenith is a joint-venture vehicle of Ewein Land Sdn Bhd and Consortium Zenith BUCG Sdn Bhd.

The latter is a Malaysia-China joint venture that was awarded the RM6.3bil mega project to build the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in Seberang Prai, a 10.53km North Coastal Paired Road (NCPR) from Tanjung Bungah to Teluk Bahang, the 5.7km Air Itam–Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive–Tun Dr Lim Chong Eu Expressway bypass.

Consortium Zenith BUCG changed its name to Consortium Zenith Construction Sdn Bhd on Jan 18 last year after the withdrawal of Beijing Urban Construction Group (BUCG).

In a related development, Vertice Bhd (formerly known as Voir Holdings Bhd) said the current investigation by the MACC will not impact the progress of the undersea tunnel project.

It said the project was an integral component of the Penang Transport Master Plan and that the role of Consortium Zenith Construction as the main contractor would remain.

Consortium Zenith Construction is a 13.2% associate company of Vertice. PUTRAJAYA: Two high-ranking bosses of development and construction companies have been remanded for six days as graft investigators continue their probe of the Penang undersea tunnel project. The two “Datuks” were held here and in Penang before being brought to court.

A 59-year-old businessman was brought to a magistrate’s court here at 9.40am yesterday and remanded for six days until Monday to help with the Malaysian Anti-Corruption Commission’s (MACC) investigation.

Magistrate Fatina Amyra Abdul Jalil allowed MACC prosecutors’ remand application although the Datuk’s lawyer Hamidi Mohd Noh objected, arguing that there was no need for his client to be held.

“I told the court that my client has been cooperative with the MACC.

“I would also like to point out that my client is innocent and his remand is only to assist the investigation,” he told reporters after the proceedings.

The MACC had initially asked for the Datuk to be held for seven days but the magistrate only allowed six days.

He was arrested at the MACC headquarters at around 8.45pm on Tuesday after being called for his statement to be recorded.

In George Town, another Datuk was brought to court for a remand application at 11.40am.

He was handcuffed and wearing MACC’s orange lock-up T-shirt with black pants when he arrived at the courthouse escorted by MACC officers.

The 49-year-old appeared calm and smiled to reporters but did not say anything before he was led inside.

Deputy registrar Muhammad Azam Md Eusoff granted a six-day remand order and the businessman was escorted out of the courthouse about 30 minutes later.

The case is being investigated under Section 16(a)(B) of the MACC Act 2009 for bribery.

It is also believed that one of the Datuks remanded yesterday tested positive for drugs.

On Tuesday, MACC personnel raided the offices of four state government agencies – the Penang Public Works Department, Penang State Secretary, Penang Office of Lands and Mines and Penang Valuation and Property Services Department – and three property development and construction companies believed to be related to the case.

The project involves a plan to bore a 6.5km tunnel below the seabed to connect north Butterworth and the island.

The tunnel is to connect Bagan Ajam, a mature suburb of about 5km from the Butterworth ferry terminal, to the end of Gurney Drive near the Pangkor Road junction on the island.

Connected to the project are three paired roads to be built on the island as a traffic dispersal system to cope with the traffic that the tunnel would bring to Gurney Drive, which is already densely developed.

The three paired roads are from Teluk Bahang to Tanjung Bungah, from Pangkor Road to the Tun Dr Lim Chong Eu Expressway – part of this stretch will be underground – and from Air Itam to the expressway near the Penang bridge.

To finance the construction, projected to cost RM6.3bil, the state government is giving payment in kind of 44.5ha of state land to the contractor, Consortium Zenith Construction.

Chief Minister Lim Guan Eng told the state assembly in 2014 that the land was valued at RM1,300 per sq ft and the project, ending with the tunnel, is scheduled for completion in 2025.

It was reported last March that RM135mil worth of land had been given to the contractor as payment to fund the feasibility studies and detailed studies.

A public-listed company announced in January 2016 that it had secured an agreement to buy 20.2ha of the land from the contractor over 10 years at RM1,300 per sq ft.

It is believed that the MACC is looking into why the state government allowed the contractor to presell state land despite delays in the project construction.

More to be called up for questioning

GEORGE TOWN: Investigations into allegations of corruption in the proposed Penang Undersea Tunnel project are expected to deepen with more people likely to be called up for questioning.

A source in the Malaysian Anti-Corruption Commission (MACC) said the focus was on the feasibility and detailed design study, which had been paid for but not completed.

“We will call in more people involved in the project to assist in investigations into the study,” the source said.

He declined to comment on whether more arrests would follow after two “Datuks” were remanded for six days yesterday to help in the investigations.

The two were remanded in George Town and Putrajaya for investigations into the corruption allegations.

The MACC source declined to share details on evidence collected that led to the remand of the two Datuks yesterday but confirmed that it was about the delayed feasibility study and detailed designs.

The feasibility, detailed design studies and environmental impact assessment was reported to cost RM305mil with RM220mil already paid. Since 2015, NGOs, government agencies, political parties and state assemblymen had asked about the payment and studies, only to be met with replies they considered unsatisfactory.

Last July, the Works Ministry and Board of Engineers Malaysia (BEM) repeatedly asserted that Penang significantly overpaid, by four times, design fees involving three roads.

Barisan Nasional strategic communications director Datuk Seri Abdul Rahman Dahlan sought the professional opinion of BEM, and it was reported that BEM replied that the detailed design costs were four times higher than the maximum allowed under the gazetted scale of fees based on the total project cost.

Last August, the state government declared that the feasibility studies would be ready by September.

In October, however, Works Minister Datuk Seri Fadillah Yusof said his ministry “had not seen a single page” of it.

Source: By mazwin nik anis, royce tan, arnold loh, r. sekaran, simon khoo The Staronline

 

MACC to make more arrests – Penang undersea tunnel project

More arrests are likely in the investigations into claims of corruption in Penang’s RM6.3bil project involving an undersea tunnel and three highways after MACC officers raided 12 more places and took statements from a dozen witnesses. They are looking into an agreement on payments to the concessionaires but Penang Chief Minister Lim Guan Eng says there was no wrongdoing and that not a single sen has been paid for the undersea tunnel project.

PETALING JAYA: Investigators looking into the allegation of corruption in the Penang undersea tunnel project are said to be thoroughly looking through the papers related to the contract for the feasibility study for the undersea tunnel.

“The agreement looks suspicious and the feasibility study for the mega project does not exceed RM305mil as announced by the state government,” sources said.

“The state government might have made a payment which is way different than the real value of the study,” they said.

On Thursday, The Star reported that the graft-busters were zooming in on the land swaps of two plots of land in Bandar Tanjung Pinang.

The sources also say that the reclaimed land for the land swaps were of high value for development. It is believed that the state JKR has set the value for the study and that allegations of misappropriation were raised when the value that was paid far exceeded the initial value.

To finance the construction of the tunnel and three paired roads on the island, projected to cost RM6.3bil, the state government is giving payment in kind of 44.5ha of state land to the contractor, Consortium Zenith Construction.

Chief Minister Lim Guan Eng had told the state assembly in 2014 that the land was valued at RM1,300 per sq ft and the project, ending with the tunnel, is scheduled for completion in 2025.

It was reported last March that RM135mil worth of land had been given to the contractor as payment to fund the feasibility studies and detailed studies. However, the study has not been completed although the land has been handed over.

A public- listed company announced in January 2016 that it had secured an agreement to buy 20.2ha of the land from the contractor over 10 years at RM1,300 per sq ft.

It is believed that the MACC is looking into why the state government allowed the contractor to presell state land despite delays in the project construction and the study.

Source: The Star Malaysia reports by MAZWIN NIK ANIS and INTAN AMALINA MOHD ALI

Related stories:

MACC probe shifts to bidding process – Nation | The Star Online

MACC looking at how RM305mil was paid – Nation | The Star Online

MACC focussing on Penang tunnel project studies, sources say …

Lim: Not a single sen paid for Penang undersea tunnel project …

No money paid for project, says Lim – Nation

 12 spots raided in tunnel probe 

Guan Eng: Project will go on unless there’s a court order to stop

Vertice, Ewein shares down following Penang arrests – Business News

Ewein MD remanded by MACC – theSundaily

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Penang Transport Master Plan (PTMP) – Tunnel project rocked, Directors arrested in graft probe


 

 

 

Stalled ambition: A view of the Gurney Drive seafront, which is meant to be connected to Bagan Ajam in Seberang Prai under the Penang undersea tunnel project.
The RM6.3bil undersea tunnel project in Penang is on rocky ground with the MACC going on a day-long swoop on companies and state government agencies involved. A high-ranking Datuk in one of the companies has been detained to help in investigations into allegations of corruption in the long-delayed mega project and feasibility studies.

PETALING JAYA: Graft-busters have arrested a Datuk holding a high post in a company involved in the controversial Penang undersea tunnel project to help investigations into corruption claims.

The arrest came after a day-long massive swoop on several offices in Penang, where the Malaysian Anti-Corruption Commission (MACC) seized documents related to the RM6.3bil mega project.

The anti-graft agency raided the offices of four state government agencies – the Penang Public Works Department, Penang State Secretary, Penang Office of Lands and Mines and Penang Valuation and Property Services Department – and three property development and construction companies – Ewein Zenith Sdn Bhd, 555 Capital Sdn Bhd and Consortium Zenith Construction Sdn Bhd’s Penang office.

MACC officers also questioned several officers in charge of the respective agencies and companies since the raids began yesterday morning.

Sources familiar with the investigation said the probe into the undersea tunnel project was also zooming in on land swaps.

Ewein Zenith is a joint-venture vehicle of Ewein Land Sdn Bhd and Consortium Zenith BUCG Sdn Bhd.

The latter is a Malaysia-China joint venture that was awarded the RM6.3bil mega project to build the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in Seberang Prai, a 10.53km North Coastal Paired Road (NCPR) from Tanjung Bungah to Teluk Bahang, the 5.7km Air Itam–Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive–Tun Dr Lim Chong Eu Expressway bypass.

Consortium Zenith BUCG changed its name to Consortium Zenith Construction Sdn Bhd on Jan 18 last year after the withdrawal of Beijing Urban Construction Group (BUCG).

It is believed that the MACC is looking into why the state government allowed the Penang Tunnel special purpose vehicle (SPV) company to pre-sell state land rights worth RM3bil despite a four-year delay in the construction of roads.

Investigators are also believed to be looking into the RM305mil feasibility and detailed design studies that have yet to be completed, even though a payment of RM220mil was made to the SPV.

On Oct 11 last year, the main contractor of the project announced that there was no urgency to finish the feasibility study for the undersea tunnel, as it was only set to begin in 2023.

The feasibility study of the tunnel started in February 2015 and as of October last year, it was said to be 92.9% complete.

Works Minister Datuk Seri Fadillah Yusof has said the delay in submitting the feasibility report to him was very unusual considering that the project was awarded in 2013.

On Friday, Parti Cinta Malaysia (PCM) vice-president Datuk Huan Cheng Guan lodged a report at the MACC headquarters in Putrajaya and handed over documents which he claimed contained new evidence of corruption in the project.

It was Huan’s third report about the matter. He first lodged a police report on July 17 last year, claiming that the project was awarded to an “undercapitalised” company.

He then lodged a report with the MACC on July 21, calling for a corruption probe.

In George Town, a source in the MACC confirmed that they had ­visited the offices of Ewein Zenith, Consor­tium Zenith Construction and 555 Capital, all of which are involved in the Penang undersea tunnel project.

“We went in the morning, shortly after their offices opened,” said the MACC officer.

However, none of the senior management staff were in and only the front office and sales staff were present to attend to them.

State Works Committee chairman Lim Hock Seng said he was not aware of the raids, while Consortium Zenith senior executive director Datuk Zarul Ahmad Mohd Zulkifli could not be reached for comment.

Meanwhile, state secretary Datuk Seri Farizan Darus said the National Economic Planning Unit on the 25th floor of Komtar was also raided, but declined to give details.

Huan thanked the commission for acting on his report.

“I believe the MACC will carry out its investigation professionally without any fear or favour,” he said.

The MACC is expected to hold a press conference today to explain the spate of raids and provide updates on the investigations.

By royce tan, tan sin chow, r. sekaran, cavina lim The Star

Penang hit by floods again !


GEORGE TOWN: Some 20 houses located on a slope in Hong Seng Estate in Mount Erskine were flooded due to blocked underground drainage.

“Not again!” was the reaction of factory worker S. Kalaiselvi, 42, who found herself neck-deep in water at her house at 2am yesterday after a three-hour downpour.

She waded through the water to higher ground with her parents, who are in their 60s.

“I have been living here for 26 years and only now am I seeing such floods,” said Kalaiselvi, who also had to move out when her house was hit by the massive floods on Nov 4 and 5 last year.

Her father Subramanian Peru­mal, 68, said he was still waiting for the relevant authorities to resolve the problem.

At the site, firemen had to install a water pump to draw out the rainwater, which flooded most of the units to waist level at one point.

It was the third time that the area was flooded since October last year.

Last Oct 30, blocked underground drainage caused floodings affecting six houses during an evening downpour, followed by massive floods during the Nov 4 and 5 storm.

On Sept 29 last year, seven houses in the estate were also affected by soil erosion.

Consultant engineer Datuk Lim Kok Khong had said the soil erosion was due to water seeping under the ground.

Kebun Bunga assemblyman Cheah Kah Peng, who has been barred from helping out with the registration of flood victims for the one-off RM700 aid given by the Penang government, was also there but offered no concrete solution to the floods in the area.

Pulau Tikus assemblyman Yap Soo Huey said nine houses had to be demolished to make way for repair works.

She said they had offered owners of the nine affected houses a low medium-cost unit each as compensation, but the residents insisted on staying put.

Earlier, Penang Flood Mitigation Committee chairman Chow Kon Yeow said the latest floods were caused by the continuous downpour that began on Thursday evening.

“The rain also coincided with a 2.34mm high tide at 2.30am yesterday,” he said.

Chow said the short-term measures to deal with the floods were to dig and deepen the rivers, and carry out upgrading and cleaning works at riverbanks to ensure that there were no blockages.

In Bukit Mertajam, a low wall sealing off the entrance to a lorry driver’s house prevented it from being submerged in floodwaters all over again.

While the water on the road outside was up to knee level, Heng Kai Chin’s home remained relatively dry, thanks to the metre-high barrier of cement and bricks.

But Heng, 43, still skipped work yesterday to keep an eye on the flooding.

A state flood report said water had entered at least 100 homes in Bukit Mertajam.

Source: The Staronline

Related Links:

Penang struck by yet another deluge

PENANGITES woke up to a cloudy and rainy morning as continuous downpour lasting for hours inundated several parts of the state.
Wet day: Students wading through floodwaters at SMK Mak Mandin in
Butterworth, Penang. (Left) Motorists braving through the waters on the
flyover at Sungai Nibong, Bayan Lepas. — MUSTAFA AHMAD/The Star and
social mediapic

 

 

Metre-high wall keeps flood out of his home

More rain in Sabah and S’wak

Fish and veggie prices go up due to scarce supply

Two primary schools in Sabah remain closed

Flood-hit students eager to return to school

 

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