GEORGE TOWN: Consortium Zenith BUCG Sdn Bhd (CZBUCG), the special purpose vehicle set up to undertake infrastructure projects in Penang worth RM6.3bil, will sue Parti Cinta Malaysia vice-president Huan Cheng Guan for defamation.

CZBUCG chairman Datuk Zarul Ahmad Mohd Zulkifli said the company has had enough of “the unsubstantiated accusations and disparaging remarks from people who clearly know that the company won the project through an open tender.”

“The board has given the go-ahead to sue Huan as his statements are defamatory and create suspicion that the company has something to hide.”

On Tuesday Huan told reporters, after submitting additional documents to the Malaysian Anti-Corruption Commission (MACC) here to back his allegations, that the consortium shareholding in 2013 comprised joint venture between Zenith and China Rail (70%), Beijing Urban Construction Group (BUCG) (10%), Sri Tinggi (10%) and Juteras Sdn Bhd (10%).

Huan claimed that CZBUCG shareholding structure changed after the company won the award, with Zenith, BUCG and Juteras Sdn Bhd having a stake of 99.13%, 0.057% and 0.863%.

He also questioned why China Rail was no longer involved as “the state government said the project was viable because of their (China Rail) presence.”

Zarul said there was no China Rail as claimed by Huan as the joint venture involves Zenith and China Railway Construction Corporation (CRCC).

“The stakes of BUCG and Juteras were diluted as they did not take up the cash call in line with the agreement.

“We have explained this before and it is being rehashed to create negative publicity,” Zarul told a press conference yesterday.

Chief Minister Lim Guan Eng, who was at the press conference, said the state had been carrying out the projects with “total transparency and integrity.”

Huan, in a statement issued later, admitted that there was no company called the China Rail group and he had used the term when he meant China Railway Construction Corporation for the purpose of brevity.

Huan sees CZBUCG’s move to sue him as an attempt to stifle further scrutiny of the project.

“I expect CZBUCG to apply for a gag order to shut me up. I await their legal letter and once received, I will consider all my legal options, including possibly a counter-suit.”