This article first appeared in The Edge Malaysia Weekly on April 22, 2024 - April 28, 2024

The controversy triggered by the emergence of Datuk Farhash Wafa Salvador — a former political aide of Prime Minister Datuk Seri Anwar Ibrahim — as a substantial shareholder of HeiTech Padu Bhd, seemed to have caught Farhash and some in government by surprise.

It is, to us, a surprise that they were surprised.

Here are the facts:

•     March 11: HeiTech won a RM13.11 million maintenance contract extension from the Immigration Department

•     March 14: Farhash disclosed deemed interest of a 15.9% stake in HeiTech

•     April 15: HeiTech announced it had bagged a RM190 million contract from the Road Transport Department (JPJ).

It is true that these contracts are not completely new, as HeiTech has been providing IT services to both JPJ and the Immigration Department.

What is new, however, is the emergence of Farhash as a substantial shareholder. In the past, having a politically well-connected shareholder was seen as a pathway to getting lucrative deals, especially from the government.

But that is not the case anymore, or at least that is what the unity government has promised — that it will not be business as usual in the way contracts are awarded.

Transport Minister Anthony Loke has said the RM190 million JPJ contract went through the proper tender process, and that the Ministry of Transport tender committee had picked HeiTech well before Farhash bought a stake.

Still, HeiTech is eyeing bigger and new contracts. And having Farhash as a shareholder may now be a liability more than an asset. To avoid controversy, they may not be given to HeiTech. And if they were awarded, it would spark controversy.

This is probably why Farhash announced last Thursday that he no longer had an interest in HeiTech, following changes at the private company that held the stake.

Farhash will feel that he is being unfairly singled out because of his previous job as Anwar’s political aide.

Maybe he is.

But times have changed and politicians (retired or otherwise) will have to figure out how to navigate the corporate world better, be it by themselves or with business partners.

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