BHIC must explain redacted portions in LCS forensic audit report: PAC 

KUALA LUMPUR – The Defence Ministry and Boustead Heavy Industries Corporation Bhd (BHIC) issued conflicting statements to the Public Accounts Committee (PAC) pertaining to the redacted portions of a forensic audit report by the latter on the littoral combat ship (LCS) procurement. 

PAC chairman Wong Kah Woh said in a previous proceeding, BHIC had explained that the audit report it received from the ministry, which was supposed to be handed over to the PAC secretariat for publication, was already redacted upon receipt. 

However, he added that in a meeting yesterday with Defence secretary-general Datuk Seri Muez Abdul Aziz, the latter claimed that his ministry had never received any report from BHIC and was not involved in the redactions. 

“PAC asks that the Defence Ministry obtain an explanation from BHIC and provide an update to the committee on what really transpired,” Wong said in a statement today. 

Yesterday’s meeting, which lasted two hours, was to obtain an update from the Defence Ministry on actions being taken to implement the PAC’s seven recommendations in its own report pertaining to the LCS scandal. 

Wong said PAC will provide its comment on the actions that have been taken by the ministry to address the seven recommendations and present its report in Parliament soon. 

Apart from BHIC’s audit report, he said PAC had similarly questioned the decision to redact certain information from a separate report by the Special Committee on Governance, Procurement and Finance Investigation into the contentious combat vessel project. 

“Pertaining to the special committee’s report, we are of the opinion that there is no need for the government to redact any information. We are also dissatisfied and do not accept the explanation given by the Attorney-General’s Chambers over the excuse given for the redaction. 

“PAC stresses that the report must be fully declassified as recommended in our own report, and the cabinet ought to issue a similar directive.”

In a separate statement, Wong said PAC is concerned over the continued increase in federal government debt, as reported in the latest Auditor-General’s Report on the government’s financial standing. 

The report added that government debt had increased by over RM100 billion from RM879.56 billion in 2020 to RM979.81 billion in 2021, resulting in the overall liability reaching RM1.298 trillion, or 84% of the country’s gross domestic product. 

“Although the auditor-general did not issue any rebuke, there are certain matters stressed that require the government’s attention.

“Among others, they include the decision to take up new loans to repay matured loans, the percentage reduction in development expenditure, and the increase in federal debt.” – The Vibes, October 6, 2022