Malaysia Oversight

Businessman denies deal to frame Guan Eng in undersea tunnel case

By FMT in August 27, 2025 – Reading time 2 minute
Guan Eng’s undersea tunnel trial postponed as key witness unable to testify


G Gnanaraja
G Gnanaraja denied lying in court about being a ‘middleman’ in facilitating payments related to the undersea tunnel project.
KUALA LUMPUR:

A businessman told the sessions court here today that he had not struck a deal with the authorities to frame former Penang chief minister Lim Guan Eng in the undersea tunnel project case.

Prosecution witness G Gnanaraja said this during cross-examination by Lim’s lawyer, RSN Rayer.

Rayer suggested that Gnanaraja might have struck a deal, noting that although he was initially investigated and charged with cheating, he later pleaded guilty to a lesser offence and was fined.

“I do not agree (with that contention),” Gnanaraja said.

He also insisted that he bore no animosity towards Lim and denied lying in court about being a “middleman” in facilitating payments related to the undersea tunnel project.

He told the court that fellow businessman Zarul Ahmad Zulkifli had given him RM19 million as a “friendly loan” in 2017.

“RM15 million was deposited in a CIMB account and another RM4 million was (given) in cash.

“Of the RM4 million, RM2 million cash was for YB Lim,” Gnanaraja said.

To a question on whether the witness had knowledge about Zarul testifying in court that he was cheated of the RM19 million, Gnanaraja said he knew about it.

“I disagree (with Zarul’s testimony). That was his version and I have my own version of what happened,” he added.

Gnanaraja said he used to contact Zarul frequently on WhatsApp, adding that they would both address Lim as “big boss”.

“It was just a general word to refer to someone with authority,” Gnanaraja said.

He told the court that Zarul also referred to cash as “chocolates” in the text messages.

The hearing continues before judge Azura Alwi on Thursday.

Lim is accused of using his position as then Penang chief minister to ask Zarul for a 10% cut of the profits from the roads-and-tunnel project.

The former finance minister is also accused of seeking RM3.3 million in kickbacks to appoint Zarul’s company to undertake the project.



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