PUTRAJAYA’S commitment to continue with the littoral combat ship (LCSs) project using the same contractor, Boustead Naval Shipyard (BNS) Sdn Bhd, is devoid of assurance that delivery will be on time, Nik Nazmi Nik Ahmad said. 

Referring to Defence Minister Hishammuddin Hussein’s verbal assurance that the first LCS will be ready “within a year or two”, the Setiawangsa MP said that the minister actually did not reveal how they intend to realise this. 

“They have yet to reveal how they intend to ensure that the failures and delays that plagued the project will not be repeated. 

“Current Defence Minister Hishammuddin Hussein has said he hopes the first LCS will be ready ‘within a year or two’.

“He should outline how the government plans to ensure this actually happens and what will be done if it does not.

“All we have – from him and his colleagues in the government – are just promises,” the PKR vice-president said in a statement today, adding that Hishammuddin had overseen this project during his previous four-year tenure in the same portfolio. 

On Monday, Hishammuddin told the Dewan Negara that the first of six LCSs purchased from BNS should be ready no later than two years from now. 

He also pledged that the Defence Ministry will be transparent with the public on status of the project and provide regular updates to ensure it will be delivered on time.

The LCS project is the largest procurement in the history of the ministry, at a total cost of RM9 billion. 

Last week, the Public Accounts Committee (PAC) released its report on the ministry’s purchase of LCSs from BNS through direct negotiations. 

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 LCSs should have been delivered to the ministry by this month.  

Referring to the PAC report, Nik Nazmi said it found that the “detailed design” for the project has yet to be finalised between the government and BNS, leaving the project vulnerable to constant manipulation. 

“PAC also found that 15% of the approximately RM1.7 billion worth of equipment stored for Malaysia’s LCSs is now obsolete. 

“This means that there is a risk that these ships may not be able to defend our country well even if they are ready. 

“We do not deny the possibility the contractor will be able to overcome this problem, but the record so far is not encouraging. 

“The government seems to be making the assumption that the first two LCSs can be completed by 2024 or earlier and they will be received without any problems. 

“However, it is not clear whether the two ships can be completed by 2024 with the remaining RM3 billion or more budget, given that there is RM800 million in liabilities,” the PKR lawmaker said. 

Nik Nazmi also called for the government to declassify the separate report of the Special Investigation Committee on Public Governance, Procurement and Finance on the project, as well as implement the recommendations of these reports. 

Meanwhile, despite several arrests made regarding the case, Nik Nazmi said  no one is yet to be charged over the scandal, although he claimed that the Malaysian Anti-Corruption Commission (MACC) recently said it plans to do so soon.  

“Even if all of the ordered LCSs were magically delivered tomorrow and the country was able to recoup the monies wasted or improperly spent – the culprits must still be brought to justice,” he said.  

“Malaysians should not be burdened with the consequences of mistakes made years ago. Forward thinking and planning are required.

“Those who are guilty must be punished. We must learn the lessons from this problem: efficiency, accountability and transparency must be applied to all government procurement, including military hardware,” Nik Nazmi added.  

MACC chief commissioner Azam Baki said last Saturday that a probe is currently in the final stages, with investigation papers being delivered to the Attorney-General’s Chambers, adding that the results of the probe will be announced soon. – August 10, 2022.