SHAH ALAM: BHIC, BNS and directors sued. Boustead Heavy Industries Corporation Bhd (BHIC) on October 4 announced to Bursa Malaysia that the company; subsidiary BHIC Defence Technologies Sdn Bh; its associate company, Boustead Naval Shipyard and two of its directors have been sued.
The Board of Directors (“Board”) of Boustead Heavy Industries Corporation Berhad (“BHIC” or “the Company”) wishes to announce that on 27 September 2022, Messrs. Ranjit Ooi & Robert Low, the Solicitors representing Contraves Advanced Devices Sdn Bhd (“CAD”) and Contraves Electrodynamics Sdn Bhd (“CED”) has filed a Writ of Summons and Statement of Claim (Kuala Lumpur High Court Suit No. WA-22NCC-485-09/2022) against the Company, BHIC Defence Technologies Sdn Bhd (“BHICDT”) (a wholly-owned subsidiary of the Company), Boustead Naval Shipyard Sdn Bhd (“BNS”) (an associate company), (Dr.) Salihin Abang (“(Dr.) Salihin”) (a Nominee Director of BHICDT in CAD and CED) and Vice Admiral Dato’ Syed Zahiruddin Putra Syed Osman (Retired) (“Dato’ Syed Zahiruddin”) (a Nominee Director of BHICDT in CAD) (BHIC, BNS, BHICDT, (Dr.) Salihin and Dato’ Syed Zahiruddin are collectively known as the “Defendants”).
From The Edge:
KUALA LUMPUR (Oct 4): Two contractors of the controversial littoral combat ship (LCS) project whose contracts were terminated have sued Boustead Naval Shipyard Sdn Bhd for outstanding payments and a declaration that the contracts are not void.
The lawsuits were filed by Contraves Advanced Devices Sdn Bhd (CAD) and Contraves Electrodynamics Sdn Bhd (CED), both of which are 51:49 joint ventures between Boustead Heavy Industries Corp Bhd (BHIC) and Germany’s Rheinmetall Group.
CAD and CED are both the recipients of 12 letters of awards (LOAs) from BNS for the procurement, engineering, integration and supply of equipment and weaponry for the six LCS. The LOAs were terminated in August 2022.
The suit is seeking an order for BNS to pay CAD alleged outstanding amounts of RM880,068.21, €39.87 million (RM182.96 million), £3.78 million (RM19.95 million) and 55.94 million Swedish krona (RM23.8 million).
Furthermore, BNS also has to pay an alleged outstanding amount of RM216.65 million to CED.
This amounted to RM444.24 million worth of claims by the companies combined, back of the envelope calculations showed.
The legal action was one of the reasons that Malaysian Defence opined for the LCS project to be scrapped altogether. It is interesting to note that the Senior Defence Minister came out a press release on the LCS issue on September 2. I am assuming that the minister was made aware of the suit as the reason for him to come out with the release. The suits against the companies and two directors were revealed as the RMN yet again called for the defence budget to be increase to 1.5 percent in the national budget to be announced on Friday.
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— Malaysian Defence