BHIC pledges fullest co-operation to MACC


Boustead Heavy Industries Corporation Bhd (BHIC) says it will extend its fullest co-operation to Malaysian Anti-Corruption Commission (MACC) and other authorities in any investigation pertaining to the Littoral Combat Ship (LCS) Project.

“We reiterate our firm stand in the fight against all forms of corruption and will continue to steadfastly address the issues identified by its external and internal auditors and to meet the expectations of its Board of Directors and government stakeholders in demonstrating good corporate governance and values.

“BHIC will also continue to work closely and transparently with the government, the Royal Malaysian Navy and financiers, contractors and vendors especially in the past 12 months in arriving at a workable outcome to get the LCS back on track,” it said in a statement responding to media’s inquiry today.

It was reported earlier this week that MACC has arrested two CEOs of a company involved in a contract to procure six LCS.

According to the anti-graft body, those aged 79 and 49 were arrested after appearing to assist in the investigation at the MACC Headquarters on Monday.
A MACC spokesman said the two were arrested on suspicion of committing malpractice and accepting bribes through payments made to three companies abroad.

“One of them is also suspected of accepting bribes from sub-contractors appointed to handle the project,” the spokesperson was quoted as saying in a report by a Malay daily.

On Nov 27, 2021, BHIC lodged a report with the MACC on possible irregularities in the RM9 billion LCS project, which its associate Boustead Naval Shipyard Sdn Bhd (BNS) is undertaking.

BHIC said the findings of the forensic audit, which was commissioned in February 2020, were handed over to the MACC in September.

Meanwhile, according to BHIC chairman Admiral Tan Sri Datuk Seri Ramlan Mohamed Ali, this stands testimony to the BHIC’s group commitment in fighting corruption and bribery at all levels of the organisation and in all its business dealings.

“This is in line with its core corporate values of belonging, honour, integrity and commitment,” said Ramlan in a statement recently who is also a retired Chief of Navy.

The project was awarded to BNS by the Ministry of Defence in 2011, and the order was for six LCSs to be constructed for the Royal Malaysian Navy.