DEFENCE Minister Hishammuddin Hussein must explain why the ministry reduced the number of littoral combat ships (LCS) to be delivered from two to one with no additional government funds being spent, Lim Kit Siang said today.

The DAP veteran said this was different from what Hishammuddin told the Public Accounts Committee (PAC) when he was called to testify on the procurement scandal.

“When Hishammuddin appeared before the PAC on January 25, 2022, he spoke about ‘corporate restructuring’ of the RM9 billion LCS contract and that the contractor, Boustead Naval Shipyard Sdn Bhd (BNS), would have to deliver two LCSs without any additional cost to the government,” Lim said in a statement.

“The Defence Minister should explain why—in three short months—he reduced the number from two LCSs to one LCS that must be completed by the contractor with no additional government funds.”

Yesterday, Hishammuddin said that there would be no additional funds given if LCS1 was not completed on schedule.

“If the party concerned cannot hand over this ship within the specified time with the existing provisions, how can we be confident that they can meet our needs for the other ships?

“So, I want to see what has been planned and presented to the cabinet achieve completion, and the test is the first ship. This first ship will not receive the latest injection of funds,” he said.

However, Hishammuddin did not rule out additional funds for the construction of the next LCS.

Lim also called on Hishammuddin to have a session with lawmakers to discuss the redacted contents from the 106-page declassified report from the Special Investigation Committee on Public Governance, Procurement and Finance (JKSTUPKK).

PAC chairman Wong Kah Woh however said that despite the redaction, the overall facts of the LCS were not affected.

Lim said that if Hishammuddin failed to set up a royal commission of inquiry (RCI), he should resign.

Only though an RCI could details such as the involvement of the then defence minister Ahmad Zahid Hamidi and then PM Najib Razak be determined, Lim said.

“The answer could only be found with the establishment of a RCI into the RM9 billion LCS scandal.” – August 18, 2022.