THE latest audit findings on the littoral combat ship (LCS) programme have renewed scrutiny of warnings raised by former Navy chief Admiral Tan Sri Abdul Aziz Jaafar during the project’s early stages.
The Auditor-General’s Report 2/2026 found that the overall programme was 7.55% behind schedule as at June 25, with delays ranging from 30 to 108 days.
The first LCS, initially scheduled for physical handover on Aug 26, 2026, is now targeted for delivery on Dec 26.
However, the National Audit Department said the ship would not be fully operational if handed over on that date, as training and weapons systems would not yet be complete.
Several supplementary contracts linked to the fleet’s full readiness are only expected to be completed by December 2035, about five years after the main contract ends on April 25, 2030.
The delays could also affect the delivery schedule for LCS 2 to LCS 5, raising questions over when the fleet will achieve the capabilities stipulated under the programme.
The development has brought renewed attention to concerns Abdul Aziz raised over the procurement process.
Records of Public Accounts Committee (PAC) proceedings show that he had written to several senior government officials, including then prime minister Datuk Seri Najib Razak, then defence minister Datuk Seri Ahmad Zahid Hamidi, the Chief Secretary to the Government and the Treasury secretary-general.
Abdul Aziz raised concerns about the Royal Malaysian Navy's (TLDM) position as the end user, saying its views were not given due consideration during the procurement process.
During PAC proceedings, he described the situation as “something is gravely wrong” after the navy’s views were not taken into account in the implementation of the project.
The PAC’s 2022 report found that the government had paid RM6.083 billion for the LCS programme, although none of the ships had been completed according to the original schedule at the time.
The committee also found that the government’s due diligence on Boustead Naval Shipyard (BNS) had failed to identify the company’s financial problems before advance payments of up to RM1.36 billion were made.
The latest audit shows that issues surrounding the LCS programme extend beyond the delays that marked its earlier stages.
Several supplementary contracts remain unfinished as the government works towards the delivery of the first ship.
One is the RM535.37 million Integrated Logistics Support and Trial Aids (ILS-TA) contract.
The National Audit Department said its contract documents had not been formally finalised as at June 25, despite two progress payments totalling RM100 million having been made.
The department recommended that the Defence Ministry draw up a realistic recovery plan and strengthen monitoring by assigning officers to address critical issues and setting deadlines for their resolution.
The LCS programme has now moved well beyond its original delivery timetable, with the latest audit raising fresh concerns over both the completion of supporting contracts and the operational readiness of the ships.
For the government, the immediate task is to ensure that the first vessel is not only handed over, but can eventually operate with the systems, training and support required under the programme. – October 7, 2026
