Malaysia Oversight

Zarul was Guan Eng’s ‘tool’ to dispose of state land, says MACC officer

By FMT in October 29, 2025 – Reading time 2 minute
Zarul was Guan Eng’s ‘tool’ to dispose of state land, says MACC officer


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Former Penang chief minister Lim Guan Eng is on trial for four corruption charges linked to the RM6 billion Penang undersea tunnel and roads project. (Bernama pic)
KUALA LUMPUR:

The sessions court in Lim Guan Eng’s undersea tunnel corruption trial heard today that businessman Zarul Ahmad Zulkifli was used as a “tool” by the former Penang chief minister in the disposal of two plots of state-owned land.

Investigating officer Zulhilmi Halim, from the Malaysian Anti-Corruption Commission, told the court Zarul’s firm was given an “advantage” when bidding for the project.

He said Consortium Zenith BUCG Sdn Bhd received two plots of land as payment for conducting feasibility studies and preparing detailed design plans for the tunnel.

However, the studies were never carried out and the design plans were not prepared.

“Our investigations showed that this project was created to ‘gift’ the plots of land to Datuk Ewe (Swee Kheng),” said Zulhilmi.

The court was previously told that Ewe, who died in 2021, had met Zarul sometime in 2013.

He is alleged to have told Zarul that he had met Lim previously and was given an assurance that Zenith Construction would be granted the ownership of Lot 702.

Zulhilmi also told the court that Ewe’s company had been funding Zenith Construction since 2013 – two years before the land transfer was executed.

A total of RM79.8 million was paid between 2013 and 2015.

“This kind of transaction (which involved Ewe paying Zarul first and receiving the plot of land later) does not make sense.

“It happened because Datuk Ewe was promised Lot 702,” the officer said.

‘No motive to frame Lim’

Zulhilmi told the court his investigations showed Zarul paid Lim a sum of RM3.3 million and also gave him a watch.

He said he did consider the possibility that Lim may have been framed by Zarul.

“But based on Zarul’s recorded statements, he had no motive against Lim as Zarul was at an advantageous position and was ultimately awarded the project.

“I believed what he said. The situation would be different if Zarul had not been awarded the project,” he said.

Lim is charged with using his position as Penang chief minister to ask Zarul for a 10% cut of the profits from the undersea tunnel project and accepting RM3.3 million in kickbacks from the businessman.

He is also accused of two counts of dishonestly misappropriating RM208.7 million worth of state land.

The hearing before judge Azura Alwi continues on Thursday.



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