But CEO gives assurance that all is in order
MESINIAGA Bhd ’s first billion-ringgit contract has gone under the microscope, with some quarters questioning its validity.
In a move to address the concerns, Mesiniaga Bhd has assured investors that the RM1.9bil project awarded by the little-known Xiddig Cellular Communications Sdn Bhd is intact and viable.
Mesiniaga’s contract is part of the RM5.45bil Enhanced Malaysia International Internet Gateway (EM-IIG) high-speed broadband project, developed by Xiddig.
Mesiniaga, which is 18.77%-owned by Permodalan Nasional Bhd, will undertake the commissioning of the core, metro distribution and access network for the EM-IIG project. The contract is effective from Jan 18, 2019 to March 31, 2020.
Group chairman and chief executive officer Datuk Wan Mohamed Fusil Wan Mahmood tells StarBizWeek that Mesiniaga has done its due diligence on Xiddig and its business plan, prior to bidding for the project.
“We are satisfied with Xiddig’s capabilities. The Contract and payment milestone have been agreed upon and are fair to both parties,” says Wan Mohamed Fusil.
The contract from Xiddig will easily be Mesiniaga’s biggest revenue contributor over the next 15 months and will likely raise the group’s turnaround by multiple times.