KUALA LUMPUR – Boustead Heavy Industries Corporation Bhd (BHIC), the company embroiled in the Royal Malaysian Navy’s littoral combat ship (LCS) controversy, posted a RM500,000 loss in the second quarter of this year.
In a statement, BHIC said it continued to focus on efficiency and productivity despite the loss after tax of RM500,000 in the second quarter ended June 30, 2022 (Q2 FY2022).
It said the reported losses came in contrast to a profit after tax of RM12.3 million in the corresponding quarter last year (Q2 FY2021).
BHIC said the revenue for Q2 FY2022 stood at RM29.9 million, lower than the RM47.2 million generated in the same period last year, owing to “variations in milestones” attained for the navy’s submarine in-service support and refit contracts.
BHIC chief executive Sharifuddin Md Zaini Al-Manaf said BHIC is continuing its performance improvement programme, in line with the “Reinventing Boustead” strategy to transform the Boustead Group into a high-performing, sustainable organisation.
“We are unwavering in our focus on continuously improving our efficiency and productivity to generate more revenue, gain new business, serve our customers better, and steer the company back into the path of profitability.”
BHIC is implicated in the LCS scandal for being the parent company of Boustead Naval Shipyard Sdn Bhd, the firm awarded the contract to build the six warships costing more than RM1 billion each.
On the company’s prospects, Boustead Holdings Bhd group managing director Datuk Seri Mohammed Shazalli Ramly said Boustead Group welcomed Prime Minister Datuk Seri Ismail Sabri Yaakob’s decision to continue with the multi-billion ringgit project for the nation’s maritime security and strategic interests.
BHIC’s forensic audit report, conducted independently by Alliance IFA (M) Sdn Bhd on the LCS programme, was declassified earlier this week and uploaded on Parliament’s official website.
The report presented alleged evidence of irregularities, and lack of proper governance on the project as early as 2010.
To date, none of the six LCS vessels have been delivered to the navy, despite the government spending RM6 billion since the project began in 2013. – The Vibes, August 25, 2022
