Malaysia

Paper trail on LCS project destroyed by BNS officials: report

Destruction of electronic devices, documents indication of cover-up, it states

Updated 3 years ago · Published on 23 Aug 2022 1:32PM

Paper trail on LCS project destroyed by BNS officials: report
The forensic audit report by BHIC on the LCS project highlights findings that include how persons with a vested interest in the project had deliberately disposed of possibly incriminating paper trails. – Hishammuddin Hussein Facebook pic, August 23, 2022

by Qistina Nadia Dzulqarnain

KUALA LUMPUR – Critical evidence in the ongoing littoral combat ships (LCS) controversy was intentionally destroyed by key figures in a blatant attempt to cover up numerous misconducts plaguing the project. 

According to the forensic audit report by Boustead Heavy Industries Corporation Bhd (BHIC) on the LCS project, it highlighted findings that included how persons with a vested interest in the project had deliberately disposed of possibly incriminating paper trails. 

A segment of the report is dedicated to detailing important elements indicating purposeful mismanagement within the project, laying bare how former Boustead Naval Shipyard Sdn Bhd (BNS) leaders had acted suspiciously by eliminating materials pertinent to the project. 

“Destruction of numerous electronic devices, documents by the ex-directors including the ex-head of the supply chain who were managing the LCS programme… on behalf of the PMO (program management organisation) was an indication of a cover-up,” the report said. 

BNS is the main contractor for the LCS project and shares the same parent company as BHIC, Boustead Holdings Bhd.  

Besides that, the report completed in July 2020 revealed that then LCS programme director, Anuar Murad, had refused to leave behind his company-provided laptop when he moved on from the post. 

“Taking away the official laptop provided to the ex-PD (programme director) along with him while leaving the office was most suspicious,” the report detailed. 

It is believed that Anuar had vacated the LCS programme director position in 2017. 

The declassification of the report was announced by Defence Minister Datuk Seri Hishammuddin Hussein last night. 

This is the third report revealed to the public on the LCS saga, following the Public Accounts Committee’s (PAC) report on hearings it conducted into the matter, and the report by the Special Committee on Governance Investigation, Government Procurement and Finance.

Despite numerous redacted sections, the report undressed how evidence of irregularities and lack of proper governance in the LCS project had been gathered from as early as 2010. 

The report also reiterated that despite various red flags being raised by multiple concerned parties who pointed out irregularities and wrongdoing, no corrective measures were taken either by the company chairman or management. 

“Such failure to stop the abuse of power was a clear act of cover-up by the then managing director and his immediate subordinates,” it said. 

The managing director of BNS during the investigation period was former navy chief Tan Sri Ahmad Ramli Mohd Nor, who has since been charged with three counts of criminal breach of trust. 

He pleaded not guilty to accusations of fraudulently approving payments amounting to a total of RM21.08 million to three different firms without the approval of the BNS board while he helmed the company. 

The Vibes had previously reported how Anuar and Ramli were repeatedly mentioned in the PAC report on the LCS issue as having taken advantage of their roles in BNS, leading to dodgy financial transactions and lack of transparency in the project. – The Vibes, August 23, 2022 

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