[UPDATED] Hishammuddin to bring RCI proposal for LCS scandal to cabinet

KUALA LUMPUR – Defence Minister Datuk Seri Hishammuddin Hussein will be proposing to the cabinet to set up a royal commission of inquiry into the contentious procurement of the six littoral combat ships (LCS).

He told Dewan Negara today that he will bring the proposal tomorrow to the cabinet as it is his responsibility to do so.

Earlier, he was asked by Datuk Razali Idris on the matter after explaining the project to the upper House. 

This comes less than a week after he said that ministry officials have nothing to hide pertaining to the ships’ procurement and that he would provide full cooperation to authorities investigating the matter, including the Malaysian Anti-Corruption Commission.

“This is my responsibility to present the matter to the cabinet on Wednesday and I will do it. The cabinet also needs to present (the proposal to set up the RCI) to the Yang di-Pertuan Agong.”

He added that based on the cabinet’s decision in April, the ministry will continue the LCS project for the benefit of the navy.

The minister then reiterated that the ministry will ensure that the mobilisation phase will be implemented to enable Boustead Naval Shipyard Sdn Bhd (BNS) to start negotiations with original equipment manufacturers in Europe and locally, from June 20 to December 21.

On the move to declassify the report of the Special Committee on Governance Investigation, Government Procurement and Finance, Hishammuddin said the Prime Minister’s Department has started the process and expected it to be completed soon.

As for the LCS forensic audit report, he said the cabinet was waiting for feedback from the Attorney-General’s Chambers and the National Audit Department, seeing that the audit belongs to BNS.

Today, Dewan Negara president Tan Sri Rais Yatim allowed senator Lim Hui Ying’s motion to debate the LCS in Parliament.

He said Lim’s motion is in accordance with Standing Order 17(3) as it is of public interest and relates to national security – allocating 30 minutes for the debate and 30 minutes to the government to answer.

Lim had proposed that the Dewan Negara debate the Public Accounts Committee report on the LCS procurement.

“Boustead Naval Shipyard Sdn Bhd received a Malaysian government contract worth RM9.1286 billion to build six LCS, of which five have to be delivered to the navy in August.

“However, until now, no ships have been completed even though the government has paid RM6.083 billion to the company, and the cost of the project has also exceeded the original cost of RM1.4 billion.”

She added that the PAC report revealed flaws, irregularities and abuse of power in the LCS procurement project.

On August 10, Prime Minister Datuk Seri Ismail Sabri Yaakob said the government agreed to declassify the report by the Special Committee on Governance Investigation, Government Procurement and Finance on the multi-billion ringgit LCS scandal. 

He added that the cabinet suggested for the forensic audit report of the project conducted in 2019 to be declassified. 

However, he said the advice and views of the attorney-general and auditor-general would have to be sought before proceeding with the aforementioned process. – The Vibes, August 16, 2022