Malaysia

All we have are words: Nik Nazmi demands accountability on LCS

Setiawangsa MP says defence minister should outline how govt will ensure delivery of first ship in ‘a year or two’

Updated 4 years ago · Published on 10 Aug 2022 10:33AM

All we have are words: Nik Nazmi demands accountability on LCS
Setiawangsa MP Nik Nazmi Nik Ahmad has slammed the federal government for continuing the LCS project with Boustead Naval Shipyard Sdn Bhd, yet did not reveal how it intends to ensure that the failures and delays that have plagued the project will not recur. – The Vibes file pic, August 10, 2022

KUALA LUMPUR – Verbal assurances from Defence Minister Datuk Hishammuddin Hussein on the littoral combat ships’ (LCS) delivery is not enough to quell the opposition’s calls for accountability. 

Setiawangsa MP Nik Nazmi Nik Ahmad said the minister should have outlined how the government will ensure the delivery of the first LCS in “a year or two” as “Malaysians deserve more than just words”.

“It must not be forgotten that he (Hishammuddin) had oversight over this project during his previous, over four-year tenure as defence minister.

“All we have – from him and his colleagues in the government – are promises. Although there have been several arrests, as far as one is aware, no one has yet been charged over the scandal, although the MACC said recently it plans to do so soon.”

He also called for the government to declassify the separate report of the Special Investigation Committee on Public Governance, Procurement and Finance on the LCS, as well as implement its respective recommendations.

“Even if all of the ordered LCS were magically delivered tomorrow and the country was able to recoup the monies wasted or improperly spent – the culprits must still be brought to justice,” he said in a statement today.

Nik Nazmi also slammed the federal government for continuing the project with Boustead Naval Shipyard Sdn Bhd, yet did not reveal how it intends to ensure that the failures and delays that have plagued the project will not recur.

He also questioned the LCS’ capability, pointing to the report by the Parliament’s Public Accounts Committee that found 15% of some RM1.7 billion worth of equipment stored for the ships are now obsolete.

“The PAC report has found that the ‘detailed design’ for the project has yet to be finalised between the government and BNS. This, as the PAC argues, leaves the project vulnerable to continued manipulation.

“The government seems to be running on the assumption that the first two LCS’ can be completed by 2024 or sooner and that they will be accepted without issues.

“It is unclear if the two ships can be completed by 2024 with the remaining RM3 billion or so budget, especially considering that there are RM800 million in liabilities.”

Hishammuddin on Monday told the Dewan Negara that the Defence Ministry was given six months to mobilise efforts to revive the project, and he believed the first ship would be delivered to the navy in two years.

He added that the government will report the schedule and progress of the littoral combat ship construction project in stages.

Last Thursday, the Public Accounts Committee advised the Malaysian Anti-Corruption Commission (MACC) to take legal action against those responsible for the alleged scandal, based on the findings of its report on the LCS project.

MACC chief commissioner Tan Sri Azam Baki said last Saturday that a probe is currently in the final stages, with investigation papers being delivered to the Attorney-General’s Chambers, adding that the results of the probe will be announced soon.

According to the PAC report, the government has spent more than RM6 billion in the procurement of six LCS vessels, which were approved in 2011 while Najib was prime minister, but a single vessel had yet to be delivered to the navy to date.

Yesterday, PKR deputy president Rafizi Ramli alleged that two of the project’s packages worth RM1.185 billion were awarded to subcontractor Contraves Advanced Devices Sdn Bhd by LCS-provider Boustead Naval Shipyard Sdn Bhd. 

Rafizi said investigations showed that these two packages were later awarded to French vessel manufacturer Naval Group (formerly DCNS), but were only valued at RM397 million.

As a war of words ensued, Najib denied Rafizi’s allegations that he was involved in applying three layers of contracts for the project, leading to the government being charged three times its actual costs by the subcontractors. – The Vibes, August 10, 2022

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