‘RM740m direct contracts to bail out TH subsidiary’
PKR’s Rafizi Ramli alleges contracts to TH Heavy Engineering, which is in serious financial difficulties, will save shareholders with public money.
PETALING JAYA: Contracts worth RM740 million were awarded in direct-negotiations to TH Heavy Engineering Berhad (THHE) by Prime Minister Najib Razak, says Rafizi Ramli.
The PKR secretary-general said that he also possessed documents supporting his allegations pertaining to the company which is partly-owned by the pilgrim’s fund Tabung Haji.
“I have documents which clearly confirm the awarding of contracts through direct negotiations of RM740 million to THHE which I will reveal further every day this week,” the Pandan MP said in a statement today.
Rafizi called the alleged awarding of the contracts by Najib as an attempt to bail out the engineering company, which he said was close to bankruptcy.
“I have repeatedly questioned Tabung Haji’s investments in THHE because the latter has continuously experienced financial difficulties, with many falling victim to THHE (formerly known as Ramunia Holdings Berhad).
“THHE is in desperate straits, especially after two of its contractors had filed a suit to close THHE and collect their debts,” Rafizi said.
Rafizi claimed that THHE’s increasingly severe financial standing was proven in how THHE’s stock price fell to 6.5 sen last week, resulting in losses of RM228 million, as well as shariah-compliant loans in the form of sukuk issuances of RM50 million, and debt issuances in the form of redeemable preference shares (RPS) of RM275 million.
Rafizi said that he strongly protested the RM740 contract awarded because THHE is a listed company, of which Tabung Haji only owns 30 per cent.
“We do not know who really owns the other 70 per cent, especially since they are the ones who will get a windfall when RM740 million of the people’s money is given to THHE,” Rafizi said.
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“In fact, the people behind THHE should be investigated and brought to court (if there is a case) for having caused losses of up to RM554 million in public funds.”