Destini's failed OPV Project and Boustead's failed LCS Project
Everybody is talking about Boustead Holdings, BHIC and Boustead Naval Shipyard on the devastating failure in the construction of the 6 LCS ships, worth RM6 Billion. It is all over the news. However, investors and public are not aware of the other RM1 Billion ship construction project failure involving Destini Berhad, Destini Shipbuilding and Engineering Sdn Bhd and THHE-Destini Sdn Bhd. Destini has failed to deliver its NGPC Number 6 ship, after the government has bent over backwards to accept 5 x NGPCs with significant problems. Now a larger problem is being faced for their 3 x OPV ships; the OPV1 was supposed to be delivered in Feb 2020, OPV2 in May 2020 and OPV3 in Aug 2020. All are late, due to mismanagement of funds at Destini Berhad. Similar case like LCS, funds are taken out by the Top Bosses for own agenda and the blame continues to be given as "donations to political parties and politicians". Come to think about it, it is true as they are “politicians”, so they remove the funds for themselves.
Genuine vendors continue to suffer, and many at the brink of bankruptcy. Investors like me and my colleagues are cheated many folds, when correct news are not being shared to/among us. Why many folds? Simple examples as follow. Investors invest in the shares of Destini and Boustead, faced mismanagement of funds by unscrupulous Top Management. Investors invest in the vendors, get screwed by the same Top Management, vendors either don’t get paid or paid very late or suffer massive additional costs due to late payment by the shipyards as the main-contractors. Please bear in mind in both cases of Boustead and Destini, Government has paid them promptly. In fact, Government has been questioned on possibility of over-payment. The fact still remain that the hundreds of vendors still face payment issues, albeit “friendly crony” vendors gets paid handsomely and on time. The middle management of both organisations enjoy fat salary for being fat, dumb and happy.. not doing anything under the pretext that the project is at standstill due to insufficient funds.
To make matters worse, both Boustead and Destini are asking for capital injection, Extension of Time and excused from paying Liquidated Damages. Who gets to gain? Obviously the Top Management who will continue to behave the same whilst the vendors will continue to be screwed. Government continues to be blamed and screwed by the same “selfish individuals” having to fork out more money,that belongs to the public. Ultimately, innocent Malaysian citizens also get screwed. From history, what is the guarantee that these “selfish individuals” would actually complete the project? Why should they be given more chances when other shipyards and organizations have been chasing for their first opportunity but never given.
The shit hit the fan when MSM took Boustead for winding-up of Boustead Naval Shipyard, having exhausted all means of discussion. https://www.klsescreener.com/v2/announcements/view/3253681 . Otherwise it may have not been taken seriously by Boustead Holdings, LTAT, the Government and the public. Now it’s in the papers, so no way to avoid. Similarly on Destini, I was also informed by Destini’s internal sources that the same winding-up petition has been filed by a vendor since September 2020, without any action by Destini to discuss and negotiate on a payment plan. Destini is obligated to inform KLSE but have failed to do so, without any action taken by anyone. Investors will continue to be screwed when crucial information like this is not shared by Destini as they are obliged to do. To make matters worse, there is already a “rescue plan” formed by the same leaders of Destini along with “their partners in crime” within THHE, to assist Destini’s head honchos to exit with a another big fat bonus “cash out”. Who gets screwed now? Investors including supposedly cash rich MOF as the owner of Urusharta Jamaah. Again, innocent citizens gets screwed left, right and centre. Urusharta Jamaah has just been assisted by Petronas (https://www.theedgemarkets.com/article/th-heavy-engineering-out-rough-waters) to help THHE survive, and for what? So that they are ready to be screwed again?
As you can see the similarities between both projects, same issue, just different scale of disaster. Sad to say, both already involved billions and will continue to incur billions more if nothing is done seriously to curb the problem.
We do hope that with the elaboration above, the relevant authorities including KDN, SPRM, MOD, MOF, KLSE and others would no longer hide but to take the necessary action to protect the innocent parties including the vendors, investors and the citizens at large as the ultimate contributors to the coffers. Allow talented, experienced, Non-political affiliated (proven clean) Shipbuilding, Shiprepair and Ship Maintenance professionals to manage the projects with support of experienced lawyers, accountants, engineers and former military officers at the board level. Putting individuals without Shipbuilding, Shiprepair and Ship Maintenance at the helm, is like relying on the great Michael Schumacher to drive an Oil & Gas Company as good as he drives his F1 car. Are you kidding? What else needs to be done to make everyone realize this simple philosophy?