KUALA LUMPUR – Top officials in the Finance Ministry and Economic Planning Unit, among others, may be roped into a high-powered committee to oversee the tendering, procurement and implementation of mega projects.
Defence Minister Datuk Seri Ismail Sabri Yaakob (BN-Bera) told the Dewan Rakyat today that the government is considering setting up the panel.
“We have proposed and tabled in the cabinet for a high-powered committee to be introduced, and perhaps chaired by the chief secretary to the government.
“This is to ensure that any future multibillion-ringgit projects can be monitored by this committee, which will comprise top government officials,” he said when winding up his ministry's budget at the committee stage, in response to questions from Nurul Izzah Anwar (PH-Permatang Pauh).
She said action against companies that fail to fulfil their terms and obligations is often taken after issues are brought forward, and singled out the procurement of defence assets, following the delay of Malaysia’s RM9.1 billion littoral combat ship (LCS) programme.
The programme, which was awarded to Boustead Naval Shipyard (BNS) in December 2011, has failed to deliver any of the six vessels to date, despite some RM6 billion having been paid.
An initial agreement stated that the ships were to be completed by 2023, with two delivered this year.
Ismail Sabri said LCS1 and LCS2 are only 60.7% and 48.09% completed, respectively, with the overall programme having made only 57.03% progress.
Previously, he had said the ministry was considering three options to resolve the delay – appointing ship designer Naval Group France as a rescue contractor, completing the programme by BNS with the remaining contract ceiling, or terminating the contract with BNS.
Today, Ismail Sabri said the cabinet is considering giving BNS the opportunity to complete the programme, albeit with certain conditions.
“They (BNS) have to present a new plan if we are to agree to allow them to continue with the contract. In the short term, the matter has been reported to the Malaysian Anti-Corruption Commission for investigation.
“We will also leave it to the Public Accounts Committee to investigate, and agree that a forensic audit be conducted. We will also conduct due diligence to see if they (BNS) are capable of completing the project.
“Finally, we want a revamp of BNS’ top management, and if there are still cases of misappropriation, a domestic inquiry will be conducted.” – The Vibes, December 14, 2020
