Malaysia

Explain how LCS project elevates local defence industry, ministry told

Don’t hide behind ‘national security’, says Muda veep

Updated 4 years ago · Published on 20 Aug 2022 9:57AM

Explain how LCS project elevates local defence industry, ministry told
Muda vice-president Zaidel Baharuddin says the littoral combat ships project failed to empower the local defence industry to not depend on foreign capabilities, even though the contract was awarded to Malaysian company Boustead Naval Shipyard Sdn Bhd. – Hishammuddin Hussein Facebook pic, August 20, 2022

KUALA LUMPUR – The Defence Ministry must clarify how the controversial littoral combat ship (LCS) project contributed to improving local engineering capacity and whether Malaysian talent was fully utilised.

Although Malaysia may not be able to build missiles, Muda vice-president Zaidel Baharuddin said the country should have the technology to build communication, monitoring and other supporting systems for military use.

In a statement today, he questioned if the work packages are given to qualified companies or passed on to cronies or “Ali Baba” firms, which depend on importing overseas capabilities.

“Don’t hide behind the excuse of national security, as the country is more at risk with ships that cannot sail.”

He added that the LCS project failed to empower the local defence industry to not depend on foreign capabilities, even though the contract was awarded to Malaysian company Boustead Naval Shipyard Sdn Bhd (BNS).

“However, a lot of scandals have surfaced, many involving overseas companies and suppliers – for example, in the case of former BNS managing director Tan Sri Ahmad Ramli Mohd Nor, whose criminal breach of trust (CBT) charges implicated a Singapore-based company.”

The LCS project has been laid bare after Parliament’s Public Accounts Committee published its scathing report earlier this month.

The Vibes reported that Ramli was implicated in the 247-page PAC report, alleging he went against the LCS technical and commercial committee by issuing letters of award to certain companies.

On August 16, Ramli was charged with three counts of CBT at the Kuala Lumpur sessions court. He 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 20, 2022

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