Malaysia

[UPDATED] LCS subcontractors overcharged govt by three times, claims Rafizi

Putrajaya billed with RM1.185 billion, but works only cost RM397 million, says PKR deputy chief

Updated 3 years ago · Published on 09 Aug 2022 2:12PM

[UPDATED] LCS subcontractors overcharged govt by three times, claims Rafizi
PKR deputy president Rafizi Ramli says that ‘even children could conclude’ that there are ‘invisible hands’ behind companies BNS, CAD and CED which had arranged supply contracts to take a 200% commission from the cost charged by Naval Group. – The Vibes file pic, August 9, 2022

KUALA LUMPUR – Two packages worth RM1.185 billion was awarded to subcontractor Contraves Advanced Devices Sdn Bhd (CAD) by littoral combat ship (LCS) provider Boustead Naval Shipyard Sdn Bhd (BNS), alleged PKR deputy president Rafizi Ramli.

In a statement today, he claimed that on the same day BNS appointed CAD as a subcontractor for the LCS project (April 9, 2012), BNS also allowed CAD to appoint its associate company Contraves Electrodynamics Sdn Bhd (CED) as its subcontractor.

He said CED then issued a Letter of Award to French naval vessel maker Naval Group (formerly DCNS) to “provide work” under the two packages valued at RM1.185 billion, which would be paid by the Malaysian government.

“Unfortunately, investigations showed that these two packages, which were finalised at RM1.185 billion with the Malaysian government, awarded to DCNS were only valued at RM397 million.

“This means that the works invoiced by DCNS to CED amounts to RM397 million while the claims from subcontractors CED and CAD to the government through BNS are three times more expensive.”

He alleged that “even children could conclude” that there are “invisible hands” behind companies BNS, CAD and CED which had arranged supply contracts to take a 200% commission from the cost charged by Naval Group.

He also questioned why the government had not directly appointed Naval Group as the main vessel supplier, but instead appointed BNS, a subsidiary of Boustead Holdings Bhd, which has the Armed Forces Fund Board under the Royal Malaysian Navy as its biggest shareholder.

“Although the decision was explained as an initiative to aid army veterans, appointing two levels of subcontractors before arriving at the final supplier (Naval Group) implies that there is misconduct from the beginning.”

Taking aim at Datuk Seri Najib Razak, Rafizi labelled the former prime minister’s attempts at dodging responsibility for the project’s delay as “weak” and insensitive to the people’s demands.

“The people want to know who are the sharks robbing the nation’s money and weakening our national defence system. This is why Najib’s efforts to divert attention from the issue is, so far, very weak.

“He is giving the impression that everything was due to bureaucratic weakness… he is trying to deceive his followers to believe that this scandal does not involve elements of corruption.”

Yesterday, the former Pandan MP had claimed that the Naval Group was privy to negotiations on the government’s move to develop and procure the six LCS even before the Defence Ministry appointed BNS as the main contractor.

He said an internal investigation by BNS parent company, Boustead Heavy Industries Corporation, concluded that it was “unusual” for DCNS to issue a quotation on December 23, 2010, even before the Letter of Award was signed between BNS and the Defence Ministry.

He had also pointed his finger at former defence minister Datuk Seri Ahmad Zahid Hamidi, who helmed the ministry during the deals, and who was allegedly responsible for switching the designs to Gowind-class vessels without consulting the Royal Malaysian Navy. – The Vibes, August 9, 2022

Related News

Malaysia / 2y

7.7 mil people registered in Padu, 2.5 mil cyberattacks, but not one success: Rafizi

Malaysia / 2y

Something fishy: More leaders berate Rafizi as Padu deadline draws near

Malaysia / 2y

Padu system to avoid leakages in distribution of subsidies, aid, says PM

Malaysia / 2y

Progressive wage policy a strategy to boost employee compensation

Malaysia / 2y

Rafizi says RON95 targeted subsidy to start after June 2024

Malaysia / 2y

Rafizi says support for Anwar has gone up

Spotlight

Malaysia

Former head of a ministry's corporate communications unit acquitted of bribery charge

Malaysia

Two sisters die trapped in Johor house fire as escape routes cut off by flames

Malaysia

NS election speculation intensifies as Aminuddin granted audience with state ruler

Malaysia

Teenager who drove recklessly, causing death remanded for further investigation

Malaysia

Police looking for trio involved in violent armed robbery in Penang (video)

Malaysia

Family of five killed as car crashes into water pipe in Serian

Malaysia

'I was once spat on by a pakcik' — Marina denies fear of contesting Malay-majority seats

Malaysia

Jewellery shop among six premises destroyed in fire (video)

You may be interested

Malaysia

Govt prioritises effective administration over early election talk - Anwar

Malaysia

METMalaysia urges calm after tremors felt across Sabah, Sarawak following minor earthquakes

Malaysia

Toh Puan Na'imah’s legal team cautions against ‘dangerous’ application of SOSMA

Malaysia

Chinese national identified as organiser of drug-fuelled party raided in KL hotel

Malaysia

Johor State Election: BN to launch machinery this Sunday

Malaysia

Future cooperation between PAS and Bersatu determined next Monday - Annuar Musa

Malaysia

Penang water tariffs to increase from July 1 after year-long deferment

Malaysia

Jewellery shop among six premises destroyed in fire (video)