PAC: Defence Ministry’s littoral ship project overspent by 1.4b, with RM400m used to settle old debts

Ipoh Timor MP Wong Kah Woh says the Ministry of Defence’s Littoral Fight Ship (LCS) challenge has overspent RM1.4 billion. — Image by Hari Anggara

By Rex Tan

Thursday, 04 Aug 2022 1:54 PM MYT

KUALA LUMPUR, Aug 8 —The Littoral Fight Ship (LCS) challenge has overspent RM1.4 billion, and RM400 million was used to pay outdated money owed from an outdated patrol vessel challenge, stated Public Accounts Committee chairman Wong Kah Woh in the present day.

The Ipoh Timor MP added that 15 per cent of the gear for the LCS challenge value RM1.7 billion has additionally change into out of date after sitting within the retailer for too lengthy.

“The Littoral Fight Ship (LCS) was given to the Boustead Naval Shipyard Sdn Bhd (BNS) firm via direct negotiation and we now have paid them as much as RM6.083 billion to date,

“Nevertheless, not even one of many LCS ships is delivered. In accordance with our timeline, 5 LCS ships ought to have been accomplished and handed over to us by August 2022,” stated Wong.

When requested by reporters, he stated that out of RM1.4 billion additional value, RM400m was used to pay for outdated money owed from the NGPV challenge, RM300 million was used for an integration facility in Cyberjaya, whereas the remaining are value overruns.

He additionally slammed the Ministry of Defence for not contemplating the “advantage of end-user” when they’re making the acquisition of the fight ships.

“Initially, Mindef agreed to buy the Sigma mannequin however it was modified to Gowind on July 11 upon the proposal of BNS.

“Even [Admiral Tan Sri Abdul Aziz Jaafar], the then chief of Navy stated that such a call is gravely mistaken,” stated Wong.

Wong then steered the federal government declassify the reviews associated to the procurement of LCS ships for public scrutiny.

He additionally urged the MACC to take quick motion in the direction of all of the findings from the PAC report and referred to as for Mindef to current a progress report on the LCS challenge each 3 months.

“We perceive that this challenge has been delayed for a very long time, and there hasn’t been a lot progress over the previous few years and has even stopped working,

“Due to this fact we would like the MinDef to report back to us each three months till the challenge is accomplished,” stated Wong.

The LCS challenge is the most important procurement within the historical past of Mindef with a complete value of RM9 billion.

The stated contract started in 2013 with a ten-year time span and 6 LCS ships have been anticipated to be constructed and delivered to the nation by the tip of 2023.