Malaysia's multi-billion warship project to proceed but subject to review: Defence minister - CNA

PUTRAJAYA: Malaysia's warship project will be continued but subject to a review, the country's Defence Minister said on Saturday (Dec 10). 

Mohamad Hasan said he needed to be briefed soon to get a clearer picture of the multi-billion ringgit Littoral Combat Ship (LCS) project which had been hit by delays.

"I will get a briefing from the relevant parties so that I have a deeper understanding of the background and issues involved.

"We will ensure that the ships are built; no point talking about history. That is important because (the LCS project) is a strategic asset of the Malaysian Armed Forces," he said.

Mohamad Hasan added that he will work together with the ministry leadership to ensure the frigates were built and delivered.

"I will ask the government to study it properly and we will ensure these ships are built and completed in the best way possible."

RM9 BILLION CONTRACT

In August this year, the Malaysian parliament's Public Accounts Committee (PAC) tabled a report on the procurement of littoral combatant ships, two years after starting a probe into the RM9.13 billion (US$2.05 billion) contract.

The committee said the project to construct six ships was awarded by the Ministry of Defence to Boustead Naval Shipyard through direct negotiation, and the government has paid RM6.08 billion or 66.65 per cent of the cost so far.

"However, not even one of the LCS ships has been delivered. According to our timeline, five LCS ships should have been completed and handed over to us by August 2022,” said PAC chairman and Ipoh Timor MP Wong Kah Woh.

The issue first drew public attention in August 2020 during the tabling of the 2019 auditor-general’s report in parliament. Altogether, the PAC held nine rounds of proceedings from November 2020 to March 2022.

Among those called up to the proceedings were former Defence Minister Ahmad Zahid Hamidi, then-Defence Minister Hishammuddin Hussein who also held the position from May 2013 to May 2018, former navy head Admiral Abdul Aziz Jaafar and officials from Boustead subsidiaries.

Former prime minister Najib Razak, who was Ahmad Zahid’s predecessor at the defence portfolio, has also been linked to the scandal. 

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2022-12-10 08:13:00Z
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