In a Bursa filing, BHIC said BHIC Submarine Engineering Services Sdn Bhd (BSES) was awarded a contract for the interim in-service support for the navy’s “Prime Minister’s Class Submarines”.
The RM99.8 million contract will last until Feb 14, 2024. The second contract is an extension to upkeep the navy’s submarine facilities and is worth RM40.2 million. It will run until Dec 31.
The letters of award were given to BSES on May 5 and accepted by the company yesterday.
BHIC is a subsidiary of Boustead Holdings Bhd.
The navy has two Scorpene submarines, which are based at Sepanggar in Sabah.
“Except for Aziah Ali and Salihin Abang, who are the directors of BHIC and BSES, none of the directors or substantial shareholders of the company or persons connected with them have any direct or indirect interest in the contracts.
“The contracts will contribute positively to the earnings of the BHIC Group for the financial year ending Dec 31, 2023,” BHIC said.
BHIC has been linked to the controversial littoral combat ship (LCS) project. The company had declassified its forensic audit report into the troubled RM9 billion project in August last year.
BHIC is a major shareholder of Boustead Naval Shipyard Sdn Bhd, the firm that received the defence ministry’s contract to build the six frigates in the LCS project.
According to BHIC’s declassified report, three companies were allegedly used to siphon off RM23.37 million from the navy’s troubled LCS project.
Parliament’s Public Accounts Committee (PAC) was reported to have said that RM6 billion had been spent on the project since 2014 but none of the ships were delivered, let alone completed.
BHIC posted a loss of RM28.1 million in the fourth quarter of 2022 compared with the RM564,000 net profit it garnered in the preceding quarter.
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