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KUALA LUMPUR – The declassified report on investigations into the Navy’s littoral combat ship (LCS) controversy has purportedly implicated Datuk Seri Ahmad Zahid Hamidi, despite the Umno president distancing himself from the multi-billion-ringgit controversy.
The report by the Special Investigation Committee on Public Governance, Procurement, and Finance includes a formal letter issued by Boustead Naval Shipyard (BNS) to Zahid when he was the defence minister.
The letter dated July 8, 2010 was sent from then BNS managing director Tan Sri Ahmad Ramli Mohd Nor, a former navy admiral who sought a letter of intent (LOI) from the ministry for the LCS project.
The copy of the BNS document, contained in the committee report’s appendix section, also indicates that Zahid had indeed acknowledged receiving the letter and had signed it off with his own signature, with a call to action for the attention of a subordinate.
In the letter, Ramli said BNS had been planning the LCS project for two years and preparations for the project were “near completion”.
However, Ramli told Zahid the LOI was needed to assure original equipment manufacturers (OEMs) that the government had given a green light in the form of a mandate and consent for the project.
With an official stamp and his own signature, Zahid had instructed the issuance of the LOI by the ministry.
“SUB (Setiausaha Bahagian) Perolehan, sila laksanakan,” Zahid reportedly wrote in a brief note, which translates as “Procurement division secretary, please implement”.
Both Zahid and BNS have come under fire after the Public Accounts Committee disclosed that key findings from the proceedings on the matter had revealed, among others, that not a single LCS was completed despite the government having paid a total of RM6.083 billion for the project.
This is despite how, according to the original schedule, five LCS vessels should have been completed and delivered by this month.
On August 7 this year, Zahid had claimed that the delays happened prior to his time in office.
The Umno president stressed that the procurement failure should not be related to him as he was not the defence minister when the project was awarded.
He added that Boustead Naval Shipyard Sdn Bhd, the vessel provider, is a subsidiary of Boustead Holdings Bhd, which has the Armed Forces Fund Board (LTAT) as its biggest shareholder.
“According to the audit report by the Parliament’s Public Accounts Committee (PAC), the contract with Boustead is in line with procurement application through direct negotiation guidelines and is dated April 17, 2002.
“Evidently, the matter has nothing to do with me, and LTAT itself holds the biggest portion of shares in the LCS supplier company,” he pointed out.
Zahid, who held the position of defence minister from April 2009 to May 2013, had also urged those involved to give their full cooperation to PAC.
“Any party that has caused delays in the procurement process should own up and provide their explanation to PAC,” he said.
Yesterday, Ramli became the first individual to be charged in court over the LCS controversy.
The 78-year-old managing director of BNS, the company contracted to deliver the LCS to the government, was charged with three counts of criminal breach of trust 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 Vibes, August 17, 2022
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