Firm linked to Zahid graft trial awarded RM31.2m contract extension

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Contract for the supply of Malaysian passport chips.

An IT services company – Datasonic Group Bhd (DGB) – linked to the corruption trial of former deputy prime minister Ahmad Zahid Hamidi, has secured a contract extension for its subsidiary worth RM31.39 million from the Home Ministry for the supply of Malaysian passport chips.

In a filing with Bursa Malaysia yesterday, DGB said its subsidiary Datasonic Technologies Sdn Bhd’s (DTSB) original contract was originally worth RM318.75 million.

With the extension, the contract ceiling value was now RM350.14 million.

According to Bernama, DGB said the amendments entailed the change in the quantity of equipment maintenance services, software and system application for public key infrastructure and public key development for 2022 and 2023.

It would also change the quantity of equipment maintenance services, software and chip system application for local and overseas for 2022 and 2023; as well as maintenance services of equipment, software and E-Gate system application for Malaysian and pre-read kiosk for 2022 and 2023.

“Under the terms of the letter, DTSB is required to furnish a performance bond for the amount of around RM3.19 million to the Home Ministry with the validity period extended until Nov 30, 2024,” it added.

DGB said the change in the contract ceiling value is expected to contribute positively toward the future earnings and net assets per share of the group for the financial year ending March 31, 2023, and the financial year thereafter for the duration of the contract.

It will not have any effect on the share capital and substantial investors’ shareholdings of the group, it added.


In March, the Kuala Lumpur High Court heard that Zahid had in 2017 – when he was home minister – received two cheques with a total value of RM6 million from DGB deputy managing director Chew Ben Ben.

In his defence, Zahid said the two cheques were not bribes but “political contributions”. – Malaysiakini