Fashion firm only an investor in Penang mega project – Guan Eng

GEORGE TOWN: The DAP-led Penang government conceded and defended the involvement of a local fashion company as a special purpose vehicle (SPV) in the undersea tunnel project in the state.

Chief Minister Lim Guan Eng said the involvement of the apparel and accessory company was as an investor and not as the main implementer of the project.

“The agreement we signed in 2013 was between Consortium Zenith, Beijing Urban Construction Group Co Ltd (BUCG) which had withdrawn, the state government represented by me and China Railway Construction Corporation Ltd (CRCC) as the main project contractor.

“The project was conducted through an open tender managed by the State Tender Committee chaired by the State Secretary,” he told reporters here yesterday.

He was commenting on the statement of MCA deputy president Datuk Seri Dr Wee Ka Siong on Saturday which questioned the involvement of a local fashion company as a SPV shareholder in the undersea tunnel project.

Lim claimed the action was politically motivated to smear the image of the state government.

He said the involvement of the fashion company was similar to the involvement of the Finance Ministry in holding 51 percent share in the Tun Razak Exchange (TRX) project.

“We know it is not the Finance Ministry which is building but another developer, so the purchase of the shares was reasonable and in the interest of the people,” he said.

The 7.2-kilometre undersea tunnel connecting Persiaran Gurney to Bagan Ajam in Seberang Perai as well as three major roads was awarded to Consortium Zenith Construction Sdn Bhd which comprised several companies.