KUALA LUMPUR (Dec 2): Boustead Holdings Bhd said today it supports subsidiary Boustead Heavy Industries Corp Bhd's stance in filing a report with the Malaysian Anti-Corruption Commission on possible irregularities found in the latter's associate company, Boustead Naval Shipyard Sdn Bhd (BNS).

In a statement, Boustead said it takes a zero-tolerance approach to bribery and corruption.

"We remain committed to the values and aspirations contained in the company’s Anti-Bribery and Corruption Policy Statement. These include preventing bribery and corruption and upholding the highest standards of integrity, accountability and professionalism in the conduct of our businesses," it said.  

It also reiterated its "commitment to uphold the highest standards of integrity, accountability and professionalism in the conduct of its businesses through its operations and subsidiaries".

The statement came after BHIC announced late last month that it had lodged a report with MACC on possible irregularities in the RM9 billion littoral combat ship project that BNS is undertaking. It had also handed over the findings of a forensic audit it commissioned in February this year to the MACC.

The project, comprising an order for six LCS to be constructed for the Royal Malaysian Navy, was awarded to BNS by the Ministry of Defence in 2011.

According to news reports, the first ship from the project should have been delivered in April 2019. However, not even one ship had been completed so far, although the Government had paid BNS RM6 billion.

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https://www.theedgemarkets.com/article/bhic-reports-possible-irregularities-its-rm9b-littoral-combat-ship-project-macc