KUALA LUMPUR: A key prosecution witness in the corruption trial of former Penang chief minister Lim Guan Eng has denied that he struck a deal with the Malaysian Anti-Corruption Commission (MACC) to frame the accused.
During cross-examination by lead counsel RSN Rayer over the Penang undersea tunnel project, businessman Datuk Seri G. Gnanaraja recounted his legal troubles in a separate Shah Alam court.
There, he had been charged in 2019 with cheating former Consortium Zenith Construction Sdn Bhd director Datuk Zarul Ahmad Mohd Zulkifli of RM19mil.
“It was a short stint; I can’t remember exactly how long it lasted,” he said in court on Wednesday (Aug 27).
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He noted that the case saw multiple adjournments as his lawyer, the late Datuk Seri Gopal Sri Ram, was also handling a 1MDB case.
Gnanaraja admitted to being investigated and interrogated by the MACC, confirming that he was initially charged with RM19mil fraud. However, he paid a fine and the charges were amended.
Rayer then put forth the suggestion that Gnanaraja had made a deal with the MACC to frame Lim.
Gnanaraja replied: “I will not agree with that. No.”
In the 2019 case, Zarul Ahmad, another star prosecution witness in this trial, sued Gnanaraja for cheating him of RM19mil as an inducement to help him drop money laundering charges.
However, Gnanaraja pleaded guilty to an alternative charge under the Companies Act 2016 and was fined RM230,000, while the cheating case has since been classified as “no further action”.
Previously, a 108-page statement by Zarul Ahmad to the MACC, which was recorded for the Shah Alam case, was allowed in this court to impeach Zarul Ahmad’s credibility for making conflicting statements involving Gnanaraja.
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Earlier, when reading out his witness statement, Gnanaraja told the court that he gave RM2mil in cash to Lim in 2017.
He said he first handed RM1mil to Lim on Aug 20, 2017, in a car in Publika, as instructed by Zarul Ahmad, who was driving.
“Lim took the bag, and he also patted Zarul Ahmad’s shoulder. I think it was to show his appreciation for the RM1mil,” he said.
Gnanaraja said the second payment of RM1mil was made when Lim visited his home on the early morning of Aug 29, 2017, while Zarul Ahmad was present.
He added that the purpose of the visit was to discuss “setting up a company and a bank account” to handle matters relating to the bribe payment for the undersea tunnel project.
“As soon as Lim expressed his intent to leave, I retrieved a bag containing RM1mil from my Bentley and handed it to him.
“Lim accepted the bag with a smile, using his right hand, before immediately getting into his car and placing the bag on his lap,” he said.
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Gnanaraja added that the discussion between the three men went on for one hour.
He also said Lim posed for photographs with his mother-in-law and wife during the visit.
During further questioning by deputy public prosecutor Datuk Wan Shaharuddin Wan Ladin, Gnanaraja denied any animosity towards Lim.
He also denied any fabrication in his testimony.
“I do not agree. Why would I lie? I just told the court I took two bags and gave two bags,” he said.
Referring to forensic reports and messages from the Shah Alam court, Gnanaraja explained that the term “big boss” often referred to former prime minister Datuk Seri Najib Razak, but in certain contexts with Zarul Ahmad, it referred to Lim.
“It depended on the situation. Sometimes, it was just a general term to refer to a person in authority,” he said.
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Lim, 64, is facing an amended charge of using his position as then Penang chief minister to solicit RM3.3mil in bribes as an inducement to assist Zarul Ahmad in securing the undersea tunnel project worth RM6.34bil.
Lim allegedly committed the offence at the Penang Chief Minister’s Office, Level 28, Komtar, George Town, between January 2011 and August 2017.
In the second amended charge, Lim is accused of soliciting a 10% profit from the company as gratification to secure the project.
The offence was allegedly committed near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City here, in March 2011.
Lim, who is Bagan MP, faces two further charges of causing two plots of land worth RM208.8mil, belonging to the Penang government, to be disposed of to two companies linked to the project.
The trial before Sessions judge Azura Alwi continues on Thursday (Aug 28).
