BOUSTEAD Naval Shipyard Sdn Bhd CEO Capt Azhar Jumaat today refuted claims that 15% of the equipment stored in its warehouses for the littoral combat ships (LCS) were obsolete.

In a rare media tour of the shipyard in Lumut, Perak, Azhar sought to clarify where the RM6 billion for the project was spent.

He also wanted to set the record straight that the ship was indeed real, and not a mere “wayang kulit ”.

“The main point we want to illustrate is that the RM6 billion is not lost or all spent. The equipment and systems we bought are in storage,” Azhar said during the tour of the shipyard in Lumut.

“The report that 15% of the equipment is obsolete is not entirely accurate because it’s in the process of becoming obsolete.”

“It is stored for prolonged periods and requires preservation and maintenance while in storage.”

“All the equipment is certified and not obsolete and can be used another 25 years from now. It is ready to be installed.”

Azhar also took a dig at Public Account Committee chairman Wong Kah Wong who said in a statement yesterday that items such as televisions were in storage and are now obsolete.

“TVs are not mission critical to war fighting, they are meant for leisure.”

“Those TVs comparative to the value of the ship are minuscule. It’s quite sensational but we have to look at it with more objectivity.”

“In our original contact, the guns, missiles and main engine, the requirement was that it is supportable for 30 years.

“So there is no issue of being obsolete within this time frame. It has been guaranteed in the contract,” he said. 

The media was given a glimpse of the storage facilities in the shipyard today.

The items stored in the warehouses are worth RM1.7 billion, which was procured using the RM6 billion which has been spent, Azhar said.

Large items such as engine parts were neatly stored in storage crates and stacked in large warehouses.

Electronic items were stored in a separate warehouse that was temperature controlled.

Azhar said there was a need to purchase parts ahead of time because they were made to order.

“In ship building there is an element where the lead time for procurement is very long,” Azhar said.

“For the main engine alone, the lead time it takes from Germany is 20 months. It’s not off-the-shelf.”

“It’s a complex activity not like building a house where the materials are available. For high performance systems, it requires time.”

“It’s not an apple to apple comparison as in other types of construction. This is naval ship building.”

“You have to have all this equipment arrive before we start construction or you have to make an opening into the ship’s structure to put in the engine.”

“This is not feasible, the hull is sensitive and has to be protected.”

Malaysia was rocked again recently with the longstanding LCS procurement issue back in the spotlight after the PAC released its report on the procurement failures.

The report disclosed that it had held nine proceedings starting from November 18, 2020, with the last one held on March 8 this year.

The PAC found that the contract was awarded to BNS via direct negotiations, with the government paying RM6.08 billion, but not even one LCS had been delivered.

According to the original schedule, five ships should have been ready and handed over by this month.

The project was started under the Najib Razak administration, when Umno president Ahmad Zahid Hamidi was defence minister. – August 13, 2022.