Businessman tells court his company was used to channel RM2m in bribes to then Penang CM Guan Eng

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Businessman tells court his company was used to channel RM2m in bribes to then Penang CM Guan Eng

KUALA LUMPUR, July 24, 2025: As former Penang chief minister Lim Guan Eng’s alleged Penang Tunnel Project graft case progresses, Lim appears to be “cornered”.

A key prosecution witness testified in a Sessions Court yesterday that his private vehicle firm was used to channel RM2 million in bribes to Lim.

Businessman G. Gnanaraja, 44, claimed his own company was used to make illicit payments to the Bagan MP and former Finance Minister as part of the alleged corruption involving the state’s RM6.3 billion undersea tunnel and roads project.

Lim has only himself to blame for dealing with Umno-linked politicians and businessmen.

No News Is Bad News reproduces below a news report on the court proceedings:

Malaysia

Witness tells Court his company was used to pay bribes to Guan Eng in Penang Tunnel Project

A key prosecution witness testifies in the Sessions Court that his private vehicle firm was used to channel RM2 million in bribes to former Penang Chief Minister Lim Guan Eng,

Updated 18 hours ago · Published on 23 Jul 2025 2:22PM

“All these instructions to prepare the company and open the account were given while I was in the car with Lim” in connection with the state’s controversial undersea tunnel project - July 23, 2025

A BUSINESSMAN told the Sessions Court today that his own company was used to make illicit payments to former Penang Chief Minister Lim Guan Eng, as part of the alleged corruption involving the state’s RM6.3 billion undersea tunnel and roads project.

G. Gnanaraja, 44, said Lim had personally instructed him to set up and open a bank account for Bumi Muhibah Capital Holding Sdn Bhd, which was incorporated on 10 August 2016. The firm was then allegedly used to pay bribes to Lim a year later.

“All these instructions to prepare the company and open the account were given while I was in the car with Lim, on the way to Publika shopping mall on 20 August 2017,” Gnanaraja said while reading his witness statement in court. “The company maintained a single account with CIMB Bank. I had full access to the account, and only I could make withdrawals.”

Testifying as the prosecution’s 37th witness, Gnanaraja told the court that he was selected as a conduit for the alleged bribe payments by Datuk Zarul Ahmad Mohd Zulkifli, then director of Consortium Zenith Construction Sdn Bhd (CZCSB).

He said Zarul first approached him between 10 and 19 August 2017 to act as the intermediary to deliver cash to Lim.

“Datuk Zarul chose me to handle the payments to Lim because he trusted me, and I was not affiliated with any opposition political party at the time,” Gnanaraja said.

He added that they discussed a RM2 million payment during a meeting at the Impiana Hotel in Ipoh on 18 August 2017. Later that evening, he was summoned by Zarul to the Eastin Hotel in Petaling Jaya.

“When I arrived at the hotel at around 6pm, Datuk Zarul got out of his car and placed two dark-coloured bags into the boot of my car,” he said. “He said ‘1M’ while putting in the first bag and ‘1M’ again with the second. I understood this to mean one million ringgit in each bag.”

Gnanaraja said that when he returned home, he opened both bags and saw they contained bundles of RM100 notes. He did not count the money, but confirmed the bags remained untouched in his study until he received another call from Zarul on 20 August.

On that day, Zarul instructed him to prepare one of the bags containing RM1 million and drive to the vicinity of Hotel Wen Worth in Pudu, Kuala Lumpur, to pick up Lim.

“When I got there, I saw Lim, wearing an official white Penang Chief Minister shirt with the state emblem, get into Datuk Zarul’s car. I was wearing a batik shirt,” he said. “Inside the car, Lim greeted us and asked how we were. He mentioned he had initially planned to arrange a meeting between me and someone named Datuk Ewein but decided instead to meet me directly to discuss financial matters.”

Lim, 64, is facing several amended charges in connection with the multi-billion-ringgit infrastructure project.

The first charge alleges that, in his capacity as Chief Minister, he used his position to receive RM3.3 million by helping Zarul Ahmad’s company secure the Penang roads and tunnel project between January 2011 and August 2017.

The second charge accuses Lim, who is also the MP for Bagan, of soliciting a 10 per cent cut of future profits from Zarul in return for aiding his company’s appointment. The alleged solicitation occurred near The Gardens Hotel, Mid Valley, sometime between 12.30am and 2am in March 2011.

Lim also faces two further charges relating to the disposal of two parcels of state land in Penang worth RM208.8 million, allegedly transferred to developers linked to the tunnel project in 2015 and 2017.

The trial before Judge Azura Alwi is scheduled to continue on 19 August. - July 23, 2025

Guan Eng told me to set up account for payments, businessman tells court

Ho Kit Yen

G Gnanaraja says he used a company’s bank account with CIMB for the purpose.

G Gnanaraja told the sessions court he met businessman Zarul Ahmad Zulkifli in May 2017 to discuss setting up a company to facilitate intended payments to Lim Guan Eng.

KUALA LUMPUR: A businessman told Lim Guan Eng’s corruption trial that the former Penang chief minister instructed him to open a bank account eight years ago to facilitate payments in relation to the undersea tunnel project.

G Gnanaraja said he utilised Bumi Muhibah Sdn Bhd to pay bribes to Lim sometime in August 2017.

He said the company maintained a CIMB bank account ending in 783, to which he had full access.

“YB Lim and I spoke about this when we were travelling in a car,” said Gnanaraja.

Gnanaraja said he met with fellow businessman Zarul Ahmad Zulkifli in May that year to discuss setting up a company for Zarul to facilitate payments to Lim.

“Zarul wanted me to be the ‘middleman’, to hand over money to me, as I was not involved with opposition parties (at the time),” he said, adding that Zarul subsequently introduced him to Lim.

First ‘middleman’ task

Gnanaraja told the court that he acted as a “middleman” for the first time on Aug 20, 2017, when he was instructed to pass RM1 million to Lim.

“Zarul gave me two bags (containing RM1 million each) at Eastin Hotel a few days earlier. He put them in my car and left,” he said.

Gnanaraja then went home and put the bags in his study room.

“I checked both bags and saw that they contained RM100 notes. I also locked my study room so that no one would enter,” he said.

The businessman said Zarul contacted him on Aug 20, 2017, asking him to bring one of the bags.

“Zarul said that we were picking up YB Lim from Hotel Wenworth to go to Publika,” Gnanaraja said.

The hearing before judge Azura Alwi was adjourned to Aug 19 after Gnanaraja told the court he was unwell.

Lim is accused of using his position as Penang chief minister to solicit a 10% share of profits from the undersea tunnel project and receiving RM3.3 million in bribes from Zarul. He also faces two charges of dishonestly misappropriating RM208.7 million worth of state land.