OPPOSITION leader Anwar Ibrahim has urged Putrajaya to halt the remainder of the project involving the navy’s littoral combat ship (LCS) programme, which he termed as the “biggest scandal” in his time of service.

Having paid RM6 billion from the total project cost amounting to RM9.128 billion and with no sign of completion in sight, Anwar urged the government to put to a stop what was left of the project and to save the balance. 

He called on the government to use the funds to deal with the rising cost of living or on the welfare of army veterans. 

“The contract amounts to RM9.1286 billion, where RM6 billion or 66.64% of the total project cost has been paid. 

“Yet, there is no sign that the LCS project will be completed. 

“So, what should we do? I propose that the current project in phases to be monitored while the remaining phases be stopped.

“The RM500 million (for the next phase of the project) should be restored for the use of the people, let it be to deal with the rising cost of living, or the welfare of army veterans,” the Port Dickson MP said at a press conference in Parliament today.

In 2011, the government awarded a RM9 billion contract to build six units of LCS to Boustead Naval Shipyard Sdn Bhd (BNS), an associate company of Boustead Heavy Industries Corporation Bhd. 

The Public Accounts Committee earlier today released its report on the Defence Ministry’s purchase of LCS from BNS. Although the government has already paid RM6.08 billion for the cost of the project, none of the ships has been delivered to date. 

According to the original schedule, five LCS should have been delivered to the ministry by this month.

The PAC said that the terms and conditions of the LCS contract was unfavourable to the government as payment for the project was based on development and item procurement instead of the actual progress of the LCS.

Anwar claimed that there were many unanswered questions pertaining to the LCS issue, which he had raised in parliament since October last year. 

Umno president Ahmad Zahid Hamidi, a former defence minister, was among the top officials summoned by the PAC.

The others summoned included Defence Minister Hishammuddin Hussein, Defence Ministry secretary-general Muez Abd Aziz, former auditor-general Ambrin Buang, Royal Malaysian Navy chief Mohd Reza Sany, as well as BNS’ chief operating officer.

Anwar also alleged that there could be “massive” corruption involved in the project and urged the Malaysian Anti-Corruption Commission (MACC) to investigate the matter thoroughly. 

“I’m alleging that there is clear misappropriation of funds, not only leakages. 

“I strongly suspect massive corruption. 

“MACC should come in to investigate the minister concerned, the secretary-general and the top brass in the Defence Ministry,” he said. – August 4, 2022.