Farhash dismisses crony capitalism jibe over HeiTech stake acquisition | FMT

Source: Free Malaysia Today

PETALING JAYA: Farhash Wafa Salvador Rizal Mubarak, a former aide to Prime Minister Anwar Ibrahim, has dismissed concerns of "crony capitalism", after he emerged as a substantial shareholder of a government contractor.

He said allegations over his stake in Heitech Padu Bhd are "nonsense", Straits Times reported.

"My stake in HeiTech was part of an investment strategy in Bumiputera tech companies.

"I felt those listed companies are undervalued and have massive potential," he told the Singapore daily.

Farhash added that on March 13 he and his business partner had also acquired a 4.97% stake in Theta Edge, a HeiTech competitor.

"If I was betting on HeiTech, why would I invest in Theta Edge at the same time?"

Farhash is the chairman and director of several companies, including 7-Eleven Malaysia Holdings Bhd and Apex Equity Holdings Bhd.

In a Bursa Malaysia filing on Thursday, HeiTech Padu disclosed that Farhash had acquired an interest in the company through Rosetta Partners Sdn Bhd. However, the acquisition price was not disclosed.

A few days prior, MyEG Capital Sdn Bhd, a subsidiary of MyEG Services Bhd, announced that it had acquired 14.6 million shares, or a 14.4% equity interest, in HeiTech Padu for RM31.2 million.

In a separate Bursa filing on the same day, HeiTech Padu announced it had secured a contract extension worth RM13.1 million for the provision of maintenance services to the Malaysian Immigration System (MyIMMs).

HeiTech Padu said the 12-month contract extension runs from Feb 18, 2024, to Feb 17, 2025.

HeiTech Padu first secured the three-year contract in March 2021. It was worth RM33.9 million and was to end on Feb 17, 2024.

The extension comes amid the government's selection process for the development of the national integrated immigration system (NIISe) to replace MyIMMs.

The Edge recently reported that HeiTech Padu was among three companies shortlisted by the government to develop the NIISe project, which is understood to be worth over RM1 billion.