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Penang Undersea Tunnel project not linked to graft case, says CM

GEORGE TOWN: The proposed Penang Undersea Tunnel and three paired roads projects have nothing to do with the graft case involving a former “Datuk Seri” businessman charged with cheating the contractor of the project, said Chief Minister Chow Kon Yeow today.

He said the charge sheet against M. G. Gnanaraja suggested that he could have taken advantage of a particular situation to obtain money from the managing director of Consortium Zenith Construction Sdn Bhd Datuk Zarul Ahmad Mohd Zulkifli.

“This is not over the tender, not about how the government awarded tender to the company. It has nothing to do with the Penang government,” he told a press conference, here, today.

He said subsequent charges involving Gnanaraja were isolated and had nothing to do with the tunnel project

He was responding to a statement by Centre to Combat Corruption and Cronyism (C4 Centre), which had urged the state government to place a moratorium on its agreement with Consortium Zenith Sdn Bhd until the Malaysian Anti-Corruption Commission (MACC) had completed its investigation into the controversial undersea tunnel project.

It was reported that Gnanaraja was charged with three counts of cheating Zarul of RM19 million.

He was alleged to have cheated Zarul into believing that he was able to settle an MACC investigation into the RM6.3 billion mega tunnel project.

He was subsequently charged with 68 counts of money laundering involving RM11.4 million.

C4 Centre argued that the company awarded the tender for the project had lost its credibility to carry out the undersea tunnel and paired roads projects, as it was reportedly involved in unethical ways of conducting business.

Chow said no charges had been filed against Zarul and his company pertaining to the project.

“Zarul said two letters have been issued to his company and him, and that no action will be taken after MACC has completed its investigations.

“We consider the matter closed and we are working with the company to finalise the agreement so that work can begin on the project with the second paired road,” he said.

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