17-3-2024 (KUALA LUMPUR) A former aide to Malaysia’s Prime Minister Anwar Ibrahim has emerged as a significant shareholder in technology services provider HeiTech Padu, raising concerns over possible favouritism and undue influence in government contract awards.
Datuk Farhash Wafa Salvador, previously Anwar’s political secretary, acquired 16.1 million shares, representing 15.9 per cent of HeiTech Padu, through his private company Rosette Partners, as revealed in HeiTech’s filing to the local stock exchange on March 14. The acquisition price remains undisclosed.
Following this development, HeiTech’s share price soared by 7 per cent on Friday, closing at RM2.60.
This marks the fifth public listed company linked to Mr Farhash, known as Anwar’s “blue-eyed boy” within his Parti Keadilan Rakyat (PKR), since Anwar took office over a year ago.
Mr Farhash’s investment comes amidst reports of HeiTech Padu being a frontrunner for the development of the government’s National Integrated Immigration System, valued at over RM1 billion. This system aims to integrate biometric technology into the country’s immigration checkpoints.
A source within the industry informed that Mr Farhash’s involvement with public listed companies facilitates access to the Prime Minister’s Office and provides insights into government directives on infrastructure projects.
Within the initial six months of Anwar’s premiership, Mr Farhash secured chairmanships in convenience store chain 7-Eleven Malaysia Holdings, stockbroking firm Apex Equity Holdings, and fintech company Excel Force MSC.
While his engagement with these companies may offer advantages such as easier access to government contracts, political analysts raise concerns about transparency and public trust in the government’s integrity.
University of Malaya sociopolitical analyst Awang Azman Pawi noted that such associations could breed perceptions of corruption or crony capitalism, potentially destabilizing the country’s economic and political landscape.
Mr Farhash dismissed these concerns, stating that his investment in HeiTech formed part of a strategy to invest in bumiputera tech companies. He highlighted his recent acquisition of a 4.97 per cent stake in Theta Edge, HeiTech’s competitor, as evidence against any bias.
In December 2022, Mr Farhash was appointed group chairman for Apex Equity Holdings, shortly after the Securities Commission launched an investigation into the company. The lawsuit for breach of capital market rules was withdrawn in December 2023.
Additionally, in January 2023, he was appointed chairman of 7-Eleven Malaysia Holdings, which is 22.36 per cent owned by politically-connected tycoon Vincent Tan. Mr Farhash also serves as director of Berjaya Construction, the construction arm of Berjaya Land controlled by Tan Sri Tan.
The Berjaya Group, led by Mr Tan, is among the consortiums bidding to revive the Kuala Lumpur-Singapore high-speed rail project and install a barrier-free system at toll plazas nationwide.
According to filings with Bursa Malaysia, Mr Farhash holds a degree in business administration and boasts “more than a decade’s worth of experience in the field of business, consultancy, and advisory.”
