Boustead Heavy Industries Corp Bhd (BHIC) said BBA was a joint venture between BAE Systems Bofors Holdings Sdn Bhd and a unit of the Boustead group.

BHIC said the contract was for a three-year period from the date of BBA’s acceptance of the offer, with a formal contract between the ministry and joint venture company to be signed at a later date.

“The contract will contribute positively to the future earnings of BHIC Group,” it said in a Bursa announcement, adding that BHIC had a 51% stake in BBA through BHIC Defence Technologies.

“Rozi Baharudin is a director of BHIC and BBA, while Ahmad Fazril Mohd Fauzi, being the chief financial officer of BHIC, is a director of BBA.

“Save for the interest of BHIC in BBA, none of the directors or substantial shareholders of (BHIC), or persons connected with them have any interest, direct or indirect, in the LoA,” it added.

BHIC has been linked to the controversial littoral combat ship (LCS) project, with the company declassifying its forensic audit report into the troubled RM9 billion project last month.

Putrajaya has also declassified the governance, procurement and finance investigation committee’s report on the project.

BHIC is a major shareholder of Boustead Naval Shipyard Sdn Bhd, the firm that received the defence ministry’s contract to build the six frigates in the LCS project.

According to BHIC’s declassified report, three companies were allegedly used to siphon off RM23.37 million from the navy’s troubled LCS project.

The report also said the organisational structure of the LCS project was left unapproved so that various officers were kept in the dark about their levels of authority and responsibilities.

Parliament’s Public Accounts Committee had said RM6 billion had been spent on the project since 2014 but none of the ships have been completed or delivered.