JPJ paid RM 190 mil to company linked to PM's ex-political secretary, MoT explains timeline and justifications

Earlier this week, public listed Heitech Padu Bhd made an announcement to Bursa Malaysia, saying that it has secured a RM 190.01 million contract from the Road Transport Department Malaysia (JPJ) to maintain its IT systems.

The contract courted controversy because Heitech Padu has indirect ties with Prime Minister Anwar’s former political secretary, Farhash Wafa Salvador Rizal Mubarak.

Heitech Padu is 15.9 percent owned by Rosetta Partners, a wholly owned subsidiary of Mfivesouthsea Sdn Bhd., which is co-owned by Kelantan’s Sultan Muhammad V and Farhash.

To address the controversy, Minister of Transport Anthony Loke said the contract was awarded to the lowest bidder (which happens to be Heitech Padu) before Farhash became a substantial shareholder.

Loke also added that in 2014, the MoT separated the contracts for MySikap and mainframe maintenance, both of which are to be done via direct dealings. In 2023, the contracts for both jobs were combined into a single open tender, for easier supervision and project management.

Loke said contract’s higher value is because what were previously two separate contracts are now combined as one, and the duration of the contract has been extended from one year to three years.

Loke said the Ministry of Transport’s (MoT) opened the job tender on 21-June 2023. Three bids were received - RM 185,076,900, RM 186,885,611, and RM 199,513,872. The estimated ceiling price of the contract was RM 207,315,469.

The ministry’s board of acquisitions made the decision to appoint Heitech Padu on 24-Nov 2023, as it was the lowest and most reasonable bid.

Heitech Padu only announced to Bursa Malaysia on 14-March 2024 that Rosetta Partners had become a substantial shareholder of the company.

“The Cabinet takes a serious view of the insinuations that this contract was allegedly awarded to Heitech Padu because of its (Farhash’s) close ties with the prime minister,” said Loke, as reported by Free Malaysia Today.

“If anyone is not satisfied with this explanation, they can lodge a report with the Malaysian Anti-Corruption Commission (MACC).”