BOUSTEAD Holdings Bhd subsidiary Boustead Naval Shipyard (BNS) Sdn Bhd said it is committed to delivering littoral combat ships (LCS) to the navy despite the recent accusations levelled against it. 

The company had received a RM9 billion contract from the government in 2011 to build the six LCS but has yet to deliver even one. The project yesterday came under fire from the Public Accounts Committee (PAC). 

Claiming to be under a new leadership, BNS said it is committed to move forward with the project for the sake of the national defence. 

“The negotiation for LCS has started since 2011 and BNS is currently managed by a new leadership, and we are very committed to move forward with the project. 

“During the current six-month mobilisation period, we are working relentlessly in engaging and negotiating with the original equipment manufacturers as well as the vendors to finalise the forward planning of the project as desired and required by the navy. 

“We are also working very closely with the Special Governance Committee, co-chaired by the Treasury secretary-general and Defence Ministry secretary-general, to ensure that the navy will receive the LCS, which are very much needed,” BNS said in a statement today. 

Yesterday, the PAC 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.

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 is unfavourable to the government as payment for the project was based on development and item procurement instead of the actual progress of the LCS. 

BNS said it welcomed the PAC report on the LCS project, adding that it would fully cooperate with the authorities in implementing all necessary measures to ensure the project will be completed in the interest of national defence.

“We appreciate the findings as well as the recommendations given by PAC in the report, and we wholly support the authorities in taking stern action against any party involved in the wrongdoing in the project,” it said. 

BNS added that it has implemented various initiatives under the ongoing transformation programme to strengthen its business and operations. 

“Besides organisational restructuring, as well as recruiting new talents and calibrating existing resources, we have also enhanced the use of digitalisation, especially in project management, to eliminate leakages, and ensure integrity and transparency in carrying out the mandate given by the government. 

“At the heart of all these efforts is our utmost priority to beef up the strength of the navy in safeguarding the security of national waters, while at the same time ensuring that the well-being and the interests of all the stakeholders of this project are protected,” BNS added. 

Yesterday, opposition leader Anwar Ibrahim urged Putrajaya to halt the remainder of the LCS project, which he termed as the “biggest scandal” in his time in service. 

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

Umno president Ahmad Zahid Hamidi, 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, navy chief Mohd Reza Sany, and BNS chief operating officer Low Kok Chiang. – August 5, 2022.