KUALA LUMPUR – The Penang undersea tunnel corruption trial has taken a dramatic turn with the testimony of businessman G. Gnanaraja, a once high-flying entrepreneur now battling bankruptcy, who claims to have acted as a middleman between construction magnate Zarul Ahmad Zulkifli and former Penang chief minister Lim Guan Eng.

On the stand, Gnanaraja painted a picture of secret dealings, midnight handovers, and whispered promises that linked Lim to millions of ringgit in alleged bribes. His words — if proven — not only imperil the political career of the former finance minister but also raise troubling questions.

A Businessman’s Burden

“I was only serving the chief minister,” Gnanaraja told the Kuala Lumpur Sessions Court when asked why he would agree to Lim’s alleged request to open a company and bank account in 2017. He claimed that Lim asked him to establish a company as a conduit for payments linked to the RM6.3 billion tunnel project.

Ramkarpal Singh, Lim’s lawyer, pressed him hard on the contradictions. Why, he asked, would a man who barely knew Lim — having met him twice — take on such a request? Wasn’t he instead using the company to commit fraud? Gnanaraja bristled at the suggestion. Fraud, he said, was not his intention. Instead, he described himself as a facilitator for the chief minister’s interests.

Adding a twist, he admitted to being declared bankrupt last December after failing to pay RM5.3 million in legal fees, a fact that could undermine his credibility as a witness.

The Black Bags of Cash

The most explosive revelation came when Gnanaraja detailed how he personally delivered two black bags containing RM1 million each to Lim in August 2017.

The first, he said, was handed to Lim outside Publika, Hartamas, after he had kept it overnight in his study. Lim, he claimed, accepted the bag and patted Zarul — the project’s main contractor — on the shoulder in what he interpreted as a gesture of thanks.

The second bag was allegedly delivered to Lim in the early hours of Aug 29, 2017, at Gnanaraja’s own residence. He described Lim smiling as he received the bag and placing it on his lap before driving away with Zarul.

Earlier that day, Gnanaraja claimed he and Lim held a confidential meeting to discuss the project’s finances, where Lim allegedly told him that 10 percent of the project’s profits were reserved for himself, with Zarul’s agreement.

The Charges Against Lim

Lim Guan Eng, now 64, faces four charges:

Two for soliciting and receiving bribes amounting to RM3.3 million from Zarul to help secure the undersea tunnel project,
And two more for dishonestly disposing of state land worth over RM208 million linked to the project.

The alleged offences span from 2011 to 2017, covering both his tenure as Penang’s chief minister and his dealings with developers tied to the mega-infrastructure plan.

Political Shockwaves

For Lim, once celebrated as a reformist and later entrusted with the nation’s finances under Pakatan Harapan, the trial strikes at the heart of his political legacy.

Political analysts note that Gnanaraja’s testimony, though dramatic, is riddled with weaknesses — not least his bankruptcy, his prior conviction in a cheating case, and the absence of direct evidence beyond his word.

For DAP, already bruised by internal rifts and public fatigue, the trial is a dangerous distraction ahead of looming elections. While Lim’s supporters insist the charges are politically motivated, detractors argue that the details — the bags of cash, the midnight meetings — are too vivid to dismiss outright.

Business News