GEORGE TOWN: The state government has defended the involvement of local fashion company, Voir Holdings Bhd, in the proposed RM6.3 billion Penang undersea tunnel project.
Chief Minister Lim Guan Eng said the company was an investor and not the main contractor for the project.
He said it was beyond the state government to interfere in any company's shareholding structure.
Noting that Minister in the Prime Minister’s Department and MCA deputy president Datuk Seri Dr Wee Ka Siong was attempting to confuse the people by claiming that the fashion company would undertake the project, Lim said there was no truth to the claims.
"Based on the contract signed, Consortium Zenith-BUCG Sdn Bhd was awarded the project and it had appointed China Railway Construction Corporation Ltd (CRCC) as the main project contractor.
"As far as the Penang government is concerned, that is the contract we signed and we will abide by it," he said.
Lim also maintained that the project was awarded via open tender system, above board and conducted according to international standards.
Wee had recently revealed that the fashion company was the majority owner of the special purpose vehicle (SPV) formed for the controversial tunnel project.
He had said that despite the Penang government announcing in 2013 that two construction giants from China would be the main stakeholders in the SPV, checks showed that the two China construction companies were nowhere to be seen as shareholders.
He had then questioned if it meant the contract awarded was now invalid.
Wee also said the people were entitled to find out why an infrastructure project of the magnitude featured such prominent involvement from a firm primarily concerned with fashion.
The project had raised numerous controversies in recent months, especially on the high cost of the RM305 million feasibility studies as well as the 21-month delay in completing it.
The Malaysian Anti Corruption Commission (MACC) is currently investigating the case with a series or raids conducted and key individuals questioned.
Following a raid earlier last week, two Datuks were remanded at the magistrates' court of Putrajaya and Georgetown on Tuesday.