KUALA LUMPUR (April 17): Transport Minister Anthony Loke Siew Fook said the value of the MySikap contract awarded to HeiTech Padu Bhd rose to RM190.01 million due to a job merger, and refuted any connection between the contract award and new shareholder Datuk Wira Farhash Wafa Salvador Rizal Mubarak, a former aide to Prime Minister Datuk Seri Anwar Ibrahim.

Loke further clarified that the contract awarded to HeiTech Padu concerning MySikap, a driver and vehicle information system, was previously two jobs, but has now been merged into one, resulting in a higher value. 

The minister also denied any link between the contract award and Farhash's past ties with Anwar, clarifying that the tender occurred before Farhash became a shareholder of the company.

On Wednesday, the transport minister explained that the recent MySikap maintenance and technical support job awarded to HeiTech Padu was previously two separate contracts - one for MySikap and another for its accompanying mainframe, the server hardware storing MySikap data - which were previously awarded via direct negotiation. 

He continued that the ministry last year decided to merge the two contracts into one, as well as award it via an open tender process. 

Loke said three companies participated in the tendering process, with all three passing the technical and financial evaluation. 

Compared to the project’s internal ceiling estimate of RM207.32 million, Loke said HeiTech Padu offered to undertake the job for RM185.08 million, while the other two bidders offered RM186.89 million and RM199.51 million respectively (excluding service tax).

“On Nov 24, 2023, the Ministry of Transport (MOT) procurement board convened and certified HeiTech Padu as the best offer, as it had the most reasonable and lowest price that passed all evaluative stages,” Loke said.

“Treasury approval was obtained on Feb 8, 2024 for a value of RM185 million (excluding service tax),” he added.

Addressing claims made by certain parties insinuating that the contract was awarded to HeiTech Padu due to Farhash’s prior connection to Anwar, Loke stressed that the contract’s tender was decided on in November last year, prior to Farhash emerging as a substantial shareholder of the company in March this year. 

“In February 2024, the Ministry of Finance (MOF) gave approval for the tender certificate, which means that this approval was not given yesterday. It was already made in February, and Farhash only bought a 15.9% stake in HeiTech Padu on March 16,” Loke said. 

“The tender decision was already made before Farhash bought shares in HeiTech Padu. He had nothing to do with it [prior to] his involvement in the company. He got to buy the shares in March. It's your respective right to buy shares,” he added. 

Loke noted that Anwar and the Cabinet take seriously the claims that the contract was awarded to HeiTech Padu due to Farhash’s connection with Anwar, and welcome any party still not satisfied with the government’s explanation over the matter to lodge a report with the Malaysian Anti-Corruption Commission, so that a detailed investigation can be undertaken. 

Loke also quelled allegations of insider trading, stating that Farhash does not serve the government in any capacity, and noted that the letter from the MOF to the MOT regarding the tender certificate’s approval in February was confidential - protected under the Official Secrets Act 1972. 

“To make that allegation is something that is not right,” he added.

HeiTech secured the RM190.01 million job from the Road Transport Department (JPJ) on Monday, disclosing that it involved “maintenance and technical support services for the JPJ’s information and communications technology infrastructure and MySikap system”. 

On Tuesday, Loke initially explained that the higher contract value of RM190.01 million was due to a longer extended contract duration. 

Shares in HeiTech Padu were up two sen or 0.84% to RM2.41 at the time of writing on Wednesday, giving the company a market capitalisation of RM243.95 million.  

https://www.theedgemarkets.com/node/708258