PUTRAJAYA will take over the management of the offshore patrol vessel (OPV) project that was managed by a former Tabung Haji subsidiary, Prime Minister Anwar Ibrahim said today. 

Anwar, who is also finance minister, said the project will now be overseen by the Finance Ministry and the government will inject another RM152.6 million to ensure the project is completed.  

“The OPV project that used to be managed by Tabung Haji Destini Sdn Bhd is taken over by the Finance Ministry after detecting major problems.  

“The project also needs another loan injection of RM152.6 million to ensure it is completed. The loan has been provided,” Anwar said at a press conference in Putrajaya after the cabinet meeting.  

Anwar said the first OPV is expected to be completed this year.  

Last year, it was reported that three OPVs that should have been handed over to the Malaysian Maritime Enforcement Agency in 2020 were still under construction, raising questions over the project.

The prime minister urged all relevant authorities to continue investigating the previous awarding of the OPV contract.  

He said that no one should get away from facing the consequences, if proven guilty. 

“We ask all enforcement agencies to continue with their investigations on the (OPV) procurement matters, whether it involves the Ministry of Home Affairs or the Ministry of Defence. 

“Hence, two actions here — first, must save and complete the OPVs according to schedule now and secondly, not letting go of those who have abused their powers by benefitting from this project,” he added. 

On October 27, 2016, TH Heavy Engineering Bhd (THHE) entered into a joint-venture agreement with Destini Bhd to undertake the contract.

THHE Destini Sdn Bhd (THHE Destini) was formed, being 51%-owned by Destini Bhd and 49%-owned by THHE.

On January 18, 2017, THHE Destini was awarded the contract for the supply, delivery, testing and commissioning of three OPVs, complete with fitting and accessories, for MMEA for a total contract sum of RM738.9 million. The contract tenure was 42 months. 

In late 2021, THHE acquired Destiny Bhd’s stake in THHE Destini for RM121,131.12. 

Last year, Lembaga Tabung Haji disassociated itself from the now-delisted THHE following its alleged delay in delivering all three vessels.

Previously, former Parit Buntar MP Mujahid Yusof Rawa had called for the Public Accounts Committee to investigate the late delivery of the OPVs, claiming there were signs of financial mismanagement in the RM738.9 million project. 

Mujahid added that the investigation must be expedited to ensure the safety of the country’s waters.   

He also questioned the government for awarding the contract via direct negotiation to THHE, which had no prior experience in building ships. – January 4, 2023.