[UPDATED] LCS saga: former navy chief Ramli Nor pleads not guilty to three CBT charges

KUALA LUMPUR – Former navy chief Tan Sri Ahmad Ramli Mohd Nor became the first individual to be charged in court over the contentious littoral combat ship (LCS) project today. 

The 78-year-old former managing director of Boustead Naval Shipyard Sdn Bhd (BNS), the company contracted to deliver the LCS to the government, was charged with three counts of criminal breach of trust (CBT) at the Kuala Lumpur sessions court. 

Ramli is accused of fraudulently approving payments amounting to a total of RM21.08 million to three different firms without the approval of BNS’ board while he helmed the company. 

He pleaded not guilty to all charges after they were read to him before judge Suzana Hussain.

The charges were made under Section 409 of the Penal Code, which provides for imprisonment of between two and 20 years with whipping, while those guilty may also be liable to a fine.

While the charge sheet made no mention of the LCS, sources have confirmed that Ramli’s charges today are related to the project.

Suzana then set bail at RM500,000 with a security of RM200,000 and one surety, while Ramli’s passport will also be held by the court until the end of his case. 

Case mention has been set for November 24, after the judge was satisfied by the application from both the deputy public prosecutor Datuk Wan Shaharuddin Wan Ladin and the defence counsel Datuk Mohd Yusof Zainal Abiden to allow them a longer period to prepare.

For the first charge, Ramli is accused of abusing his power by committing CBT over funds belonging to BNS, when he fraudulently approved the payment of RM13.54 million to a bank account belonging to Setaria Holding Ltd without BNS’ board of directors’ approval. 

He is alleged to have committed the offence between July 26, 2010 and March 25, 2011. 

For the second charge, Ramli is accused of committing the same crime, this time by consenting to the payment of RM1.36 million to JSD Corp Pte Ltd between April 19, 2011 and May 4, 2011. 

As for the third charge, he is accused of unanimously approving the payment of RM6.18 million to Sousmarin Armada Ltd between October 28, 2010 and November 22, 2010. 

All three transactions saw funds being transferred to banks in Singapore. 

Previously on August 12, The Vibes had reported on Ramli’s heavy-handed involvement in the LCS controversy, with his name being mentioned on 14 occasions in the Public Accounts Committee (PAC) report on the project procurement. 

He had also served as chairman of the LCS Steering Committee (LCSSC), besides being deputy executive chairman and managing director at Boustead Heavy Industries Corporation Bhd (BHIC), which shares the same parent company as BNS, Boustead Holdings Bhd. 

Another individual that was said to have been heavily involved is Anuar Murad, who was previously LCS programme director. 

Among the PAC findings was that Ramli and Anuar had been holding private talks involving the LCS project, and had attempted to dodge queries from the LCSSC by minimising the number of committee meetings and often postponing them if Ramli was unable to attend. 

Ramli had also gone against the LCS Technical and Commercial Committee by issuing letters of award (LOAs) to certain companies without their approval, the PAC report noted.

Separately, the report noted that within his capacity as BHIC chairman, Ramli had suggested converting the currency for a separate LCS LoA from ringgit to euros, a decision that caused BNS to suffer RM13.5 million in losses. 

Based on probes conducted by independent auditors Alliance IFA (M) Sdn Bhd, Ramli was also found to have released progress payments for the project solely on the recommendation of Anuar, while dismissing letters by whistleblowers regarding red flags in the LCS project. – The Vibes, August 16, 2022