Zahid did not appoint Datasonic for passport chip contract, says defence


Hailey Chung Wee Kye

Former home minister Ahmad Zahid Hamidi’s involvement in appointing Datasonic Technologies Sdn Bhd in 2015 for a government contract was limited to providing assistance, information to Finance Ministry, his lawyer says. – The Malaysian Insight pic by Afif Abd Halim, September 20, 2021.

IT is totally “unfounded” to suggest that Ahmad Zahid Hamidi had appointed Datasonic Technologies Sdn Bhd in 2015 for a government contract worth RM318.75 million, his defence team submitted at his corruption trial today. 

The former deputy prime minister’s lawyer Hamidi Mohd Noh told the Kuala Lumpur High Court that the appointment was in fact made by the Finance Ministry.

Hamidi said Zahid’s role in as far as the contract was concerned was only to provide “assistance and information to the Finance Ministry”. 

Two of the 47 graft charges that Zahid are facing are for corruptly receiving RM5 million and another RM1 million on April 26, 2017 from Datasonic, allegedly as a reward for appointing the information technology services management company to supply Malaysian passport chips for five years. 

“The contract had to go through direct negotiation procedures, and such procurement could only be approved by the MOF,” Hamidi told judge Collin Lawrence Sequerah. 

“The involvement of Zahid as the then home minister in the award of the contract to Datasonic was only limited to providing assistance and information to the MOF before such appointment was concluded by the latter.” 

The lawyer said initial talks on the direct negotiation on the contract involved only Datasonic and the MOF. 

“Datasonic wrote a letter to the attention of then finance minister Najib Razak, and not to the accused, to indicate the company’s interest to be part of the contract,” he said. 

Hamidi said evidence of MOF’s procurement department former deputy secretary Dr Uzailee Abdul Latif showed that the award of the contract was strictly proper. 

The 30th prosecution witness had testified that he did not receive any instructions from anyone to write a letter to seek the Home Ministry’s response regarding Datasonic’s potential to execute the project. 

Hamidi further said it was not unusual for Datasonic to be awarded the government contract as it had an established reputation and standing. 

Datasonic deputy managing director Chew Ben Ben, the 34th prosecution witness, had previously said the company group had already received about 30 government projects. 

He had also said the estimated value of the projects Datasonic received from the government was about RM3 billion. 

“Therefore, the award of another contract to Datasonic should not trigger any suspicion because the company has its own expertise and experience in performing the works required of them,” Hamidi said. 

Apart from that, Hamidi said the contract has financially benefited the government because Datasonic agreed to reduce a sum of RM6.25 million. 

Consequently, the government saved 1.92% from the initially proposed price of RM325 million, he said. 

Today is the eighth day of oral submissions by Zahid’s lawyers to present their final arguments before the court decides whether he should enter his defence.

The Umno president faces 47 charges – 12 counts of criminal breach of trust, 27 counts of money-laundering, and eight counts of bribery charges – involving millions of ringgit belonging to his charity arm Yayasan Akalbudi.

The hearing continues tomorrow. – September 20, 2021.


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