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Wednesday, 24 January 2018 | MYT 12:00 AM

Wee asks Penang govt tough questions

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.