SHAH ALAM: Back in August, Malaysian Defence reported that the MMEA’s OPV1 – OPV Tun Fatimah – will be delivered by year end. This was even though the plan was for her to be delivered by October or November. MMEA DG Admiral Maritime Abdul Hamid Amin speaking on November 11 announced that the handing over will take place on November 27.
Unfortunately, I was told that this was not the case as the handing over ceremony today was scrubbed after OPV1 suffered a glitch last week.
The matter was rectified quickly, I was told, but it was enough for the handing over to be delayed to mid-December. For the record, OPV1 was on contract to be delivered in August 2022. Checks on ship trackers today showed Tun Fatimah remained at the TH Heavy Engineering (THHE) jetty adjacent to the shipyard. She was on trials within the last two months.
KUALA LUMPUR (Sept 13): Offshore fabricator and shipbuilder TH Heavy Engineering Bhd (THHE) is undertaking a voluntary winding-up, a year after it was delisted from Bursa Malaysia.
The company resolved to undertake voluntary winding-up as it is unable to continue its operations due to liabilities, it said in a winding-up notice dated Sept 13.
The winding-up notice also stated that a meeting of creditors is scheduled for Oct 4 at 3pm.
THHE is controlled by the Ministry of Finance-owned (MoF) unit Urusharta Jamaah Sdn Bhd, which holds a 64.45% stake in the company prior to its delisting on Sept 5, 2022.
As of March 23, 2022, other shareholders include Mohamed Faroz Mohamed Jakel and siblings Luqman and Mohamed Nizam who collectively held 2.95%, according to THHE’s last annual report.
As at end-June 2022, THHE had capital deficiency of RM210.87 million, as it had RM393.14 million in total liabilities, against RM182.27 million in total assets.
It must be noted that both KD Teguh Samudera and KD Gagah Samudera had already been launched when the shipyard was wound-up by its creditors. I was told OPV2 and OPV3 blocks have been built but they are not yet joint. (I was told of recent pictures of the OPV 2 and OPV3 under construction at the THHE shipyard but they looked the same as when I saw them in 2019).
I was told the Home Ministry and Urus Harta Jemaah (the MOF-owned company which took over THHE during the PH government rule) were trying to ensure that the OPV2 and OPV 3 could be completed. But it will take some time based on the training ships saga. Hopefully, Urus Harta had ring fenced OPV2 and OPV3 when it voluntarily wound-up THHE so there is no need for them to get a court order to do it (which will take time).
Even if they got the legal order to complete the ships, it is unclear whether the work to complete them could be done at THHE yard in Pulau Indah or it need to be done elsewhere like the two Samudera.
I am not a lawyer but based on the Edge report above, the government may well have to pay TH Heavy Engineering’s liabilities of around RM393.14 million as the company has no income. And this is on top of the RM738.9 million contract to build the three OPV was secured by THHE in January 2017. I am not sure whether the government has paid THHE the whole amount though.
The government also extended a loan of RM152.6 million to THHE early this year to ensure the completion of OPV1 within this year. The money was supposed to be enough to complete the OPV2 and OPV3 as well, Malaysian Defence had reported.
THHE travails is probably the reason MMEA had to accept offers of retired ships.
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