LCS scandal: firm set up merely 45 days before obtaining subcontractor package – Part 1
SSM documents reveal intricate corporate web involving directors of firms involved with project
(The Vibes) – A company that was commissioned to implement vital defence features worth RM1.185 billion in the littoral combat ships (LCS) project was formed less than two months prior to its appointment as a subcontractor.
This was a mere 45 days before it was elected by Contraves Advanced Devices Sdn Bhd (CAD) for the implementation of two supply and manufacturing packages, as claimed by PKR deputy president Rafizi Ramli on Tuesday.
In a statement, Rafizi revealed that CAD had appointed CED as its subcontractor on the same day (April 9, 2012) that Boustead Naval Shipyard Sdn Bhd (BNS) awarded the two packages to the former, and the PKR man questioned why the deal had to go through multiple layers.
He detailed that the packages include combat system work on equipment integration, integration support, training centre, software and shore integration facility, combat system management as well as software system integration.
Notably, the first-layer subcontractor CAD’s business nature as recorded by SSM – industrial manufacturing, assembling and modules production – appears to not align with the requirements of the packages.
On the other hand, CED was set up to deal with system integration, training and simulation, as well as related technical services for the defence industry, ostensibly a better match for the listed works.
The SSM document also revealed that CAD is the sole shareholder of CED’s RM1 million share capital, while BHIC Defence Technologies Sdn Bhd (BHICDT) has a majority 51% share in CAD.
BHICDT is a wholly owned subsidiary of Boustead Heavy Industries Corporation Bhd (BHIC), which shares the same parent company as BNS, Boustead Holdings Bhd.