Why was Huawei China replaced as contractor in the Aries Telecoms project?

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Huawei China Was Replaced by Paneagle Holdings in the Aries Telecoms Project

Bank Pembangunan Malaysia Bhd (BPMB) has alleged that Huawei China was replaced as the turnkey contractor for the Aries Telecoms fibre optic project by Paneagle Holdings. This change in contractor occurred without the full knowledge, consent, or approval of BPMB. The RM400 million loan originally intended for the project was disbursed to Aries Telecoms under conditions that were allegedly not met, and BPMB claims the funds were subsequently misused and transferred to other entities.
Contractor Change Occurred Without Bank Approval

The initial appointment of Huawei Technologies Co Ltd (Huawei China) as the turnkey contractor for the Aries Telecoms fibre optic project was a key condition for the RM400 million loan approval. However, this arrangement was later altered. Paneagle Holdings took over the role of contractor, a decision that BPMB states was made without its complete awareness, agreement, or sanction.
Loan Funds Allegedly Misused and Transferred

BPMB contends that the RM400 million loan was disbursed to Aries Telecoms despite the non-fulfilment of necessary conditions. The bank further alleges that the funds, earmarked for the fibre optic project, were subsequently misused. These funds were reportedly "syphoned and/or unjustifiably transferred" to various other entities, including Paneagle Holdings Bhd, BVS Trinity Sdn Bhd, VCB Malaysia Bhd, Orient Telecoms Sdn Bhd, and Primawin Ltd.
Loan Disbursed Despite Corporate Changes

Despite the significant change in the appointed contractor from Huawei China to Paneagle Holdings, the loan was still disbursed. This disbursement occurred in two tranches of RM200 million each to Aries Telecoms, which was then known as V Telecoms Bhd. BPMB's claim indicates that the bank’s former president and group managing director, Datuk Mohd Zafer Mohd Hashim, allegedly approved separate waivers for certain conditions that were required.

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Why was Huawei China replaced as contractor in the Aries Telecoms project?

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