KUALA LUMPUR (Sept 21): The Centre to Combat Corruption and Cronyism (C4) has questioned why Tan Sri Lodin Wok Kamaruddin — former chairman of Boustead Heavy Industries Corporation Bhd (BHIC) and one of the key figures in the Littoral Combat Ship (LCS) scandal — has not come under the scrutiny of the authorities, given his involvement in the supply chain companies for the scandal-tainted project.

In a press briefing on Wednesday (Sept 21), C4 said that Lodin, who was connected to the scandal via a web of BHIC-owned subsidiary companies, remained largely isolated from any formal investigation by anti-graft agencies.

“We want to highlight this to MACC (Malaysian Anti-Corruption Commission). Lodin is involved in all the supply chain companies for the LCS project.

"But this is the work of MACC, are they doing their job? There are some real names that have escaped scrutiny,” contended C4 executive director Cynthia Gabriel.

Citing the Public Accounts Committee (PAC) report, the anti-corruption non-governmental organisation said that during his leadership of BHIC, Lodin had facilitated the set up of shell companies such as Contraves Advanced Devices Sdn Bhd (CAD) and Contraves Electrodynamics Sdn Bhd (CED) — the main contractor responsible for the procurement of various components for the LCS.

C4 alleged that the two companies were set up with the intention of using the companies as vehicles to avoid detection of fund misappropriation.

BHIC held the majority stake of 51% in both CAD and CED, while German-based Rheinmetall Group held the balance 49%; but a report by the PAC said that Lodin ceded complete control to Rheinmetall.

The NGO also highlighted that between July 2008 and October 2016, Lodin was the deputy chairman of Affin Holdings Bhd, which controls Affin Bank that had extended loans to Boustead Naval Shipyard (BNS) — the company that undertook the LCS project.

“The connections are too striking to be ignored in that Lodin Wok formerly occupied the board of directors and the chairman role of Affin Bank. Affin Bank is also connected to other companies that Lodin Wok has occupied high-ranking positions that are involved in the LCS scandal", said C4 research officer Bryan Cheah.

He highlighted that Lodin was the chief executive of the Armed Forces Pension Fund (LTAT) from August 1982 until September 2018, which holds substantial stakes in Boustead Holdings Bhd and Affin Bank.

LTAT owns 59.42% stake in Boustead Holdings Bhd.

LTAT holds a direct 33.32% stake in Affin Bank, while Boustead Holdings also owns a direct 20.85% stake in the banking group.

Meanwhile, Boustead owns 65% in BHIC and its parent LTAT owns 8.16%.

“In the LCS scandal, LTAT’s presence is less direct, but nonetheless significant. LTAT is the majority shareholder of Boustead Holdings and also has shares in its subsidiary BHIC, and thus retained some control over the company's operation,” Cheah pointed out.

Boustead Holdings is the largest shareholder of BNS holding 68.85%, followed by BHIC 20.77% and LTAT 10.38%.

The Edge reached out to Lodin for comment, but had yet to receive a response at press time.

C4 also asked MACC to announce its findings into its investigations into the LCS scandal, which the anti-graft body had completed in August.

On Aug 11, MACC said it had completed its investigation into individuals linked to the LCS project, and that investigation papers had been handed to the Attorney General's Chambers (AGC). MACC said it had also made recommendations on charges to be filed against these individuals.

“For now, MACC is keeping mum on the investigation report they did. There are no updates. This is an important issue that has got national interest. They should update the public, so that it restores and builds confidence in the anti-graft agency,” said C4 investigative researcher Pushapan Murugiah.

C4 said its claims are based on its internal investigations into a number of publicly available documents by the Investigating Committee of Procurement, Governance and Finance (JTSUPKK) report on the LCS, and the declassified internal forensic audit report by BHIC into the LCS controversy.