KUALA LUMPUR – Top government officials were alerted on numerous occasions of possible problems emerging from the procurement process of the six littoral combat ships (LCS) but took no measures to address them.
This was revealed by former navy commander Tan Sri Abdul Aziz Jaafar during a Public Accounts Committee (PAC) proceeding on July 29, 2021.
His testimony was included in the committee’s report on LCS that was released yesterday.
According to Aziz, who was the navy chief from April 2008 to November 2015, he had expressed his suspicion and the view of the navy via letters of reprimand and dissatisfaction to the top echelons of the federal government and Defence Ministry.
This included two letters to the then prime minister Datuk Seri Najib Razak, five letters to the defence minister, 10 to the ministry secretary-general, and one each to the secretary-general of the treasury, and chief secretary to the government.
Datuk Seri Ahmad Zahid Hamidi helmed the Defence Ministry from April 2009 to May 2013, followed by Datuk Seri Hishammuddin Hussein.
For the record, while a letter of intent for the LCS procurement was first made in October 2010, the official contract was only signed with Boustead Naval Shipyard Sdn Bhd (BNS), the vessel provider, in July 2014.
“All these letters that I sent have been archived. We archived them to ensure that they will be available for reference, and I would not be blamed for the failure to perform my job as the chief of the navy,” said Aziz.
“I anticipated (the problems in procurement), for your information. Because from the start, I have raised concerns over the procurement process. I said, ‘something is gravely wrong’.
“I have never said this outside, but now is the best opportunity for me to inform you that I have registered my greatest disappointment to everyone who is supposed to be listening to me.”
Aziz testified that he suspected something was off with the LCS procurement because while the acquiring of the vessels was done by the government on behalf of the navy, BNS was given full control over the project.
He recalled how the company had previously issued statements notifying that the requests made by the navy about the specifications of the ships were subjected to its evaluation and verification.
“This is odd. If I were to build a house and say I want that, you would bloody well get it done. Right or not? The fact that it happened the other way round clearly shows there was no transparency.”
Aziz said BNS’ claim that the selection of certain equipment for the vessels was done as part of cost-cutting measures was also proven false following cost verification.
“This gives the picture as though we have been cheated. That was disappointing.”
He also said the action taken by Boustead to ignore the demands of the navy showed that the company was being very arrogant and appeared as though it was “very well protected”.
He added that the navy’s request for the LCS has always been to ensure that any equipment purchased is value for money, technologically advanced, will enhance defence capability, and will enable the navy to be highly capable.
Yesterday, PAC chairman Wong Kah Woh said the recommendation was based on the findings made under several reports, namely PAC’s report, as well as the Special Committee on Governance Investigation, Government Procurement and Finance report, and the forensic audit report.
This issue cropped up following findings made by the National Audit Department, which were reported in the 2019 Auditor-General’s Report (Compliance Auditing of Ministries and Departments), as well as appearing in the Special Committee report.
Among witnesses who were summoned to the proceedings include Hishammuddin, Zahid, and Defence Ministry secretary-general Datuk Muez Abd Aziz.
Others include Special Committee chairman Tan Sri Ambrin Buang, RMN chief Tan Sri Mohd Reza Mohd Sany, Armed Forces Fund Board (LTAT) chief executive officer (CEO) Datuk Ahmad Nazim Abd Rahman, Boustead Heavy Industries Corporation Bhd CEO Sharifuddin Md Zaini Al-Manaf, and Boustead Naval Shipyard Sdn Bhd chief operating officer Low Kok Chiang.
Wong said the Defence Ministry must submit its progress report for the LCS project every three months to the PAC until the project is completed. – The Vibes, August 5, 2022
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