Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 10): The Special Committee on Governance Investigation, Government Procurement and Finance's report on the RM9 billion littoral combat ship (LCS) project chaired by former auditor general Tan Sri Ambrin Buang will be made available to the public.

This was decided in a Cabinet meeting on Wednesday (Aug 10), said Prime Minister Datuk Seri Ismail Sabri Yaakob in a statement.

"The Cabinet also proposed that the forensic audit report on the LCS project which was conducted in 2019 be declassified. However, this process (declassifying the report) first requires the advice and views of the attorney general and the auditor general," he said.

Ismail Sabri said the decision will not interfere with the Mobilization Process under the LCS Recovery Plan decided by the Cabinet on April 20 this year.

He added that the Cabinet has urged the Malaysian Anti-Corruption Commission (MACC) to speed up its investigation.

"If there is strong evidence, the attorney general should prosecute and those who are responsible will be brought to justice.

"I called Attorney General Tan Sri Idrus Harun and MACC Chief Commissioner Tan Sri Azam Baki after the Cabinet meeting to immediately act in accordance with the decision of the meeting," he said.

Ismail Sabri also said the government remains committed to continuing with this project in the interest of the country's defence, and in line with the requirements of the Royal Malaysian Navy.

"I, on behalf of the government, assure that the investigation into this issue is being conducted transparently and that the government will not protect anyone involved," he said.

The Public Accounts Committee (PAC) and Senior Defence Minister Datuk Seri Hishammuddin Hussein backed the declassification of the forensic audit report.

The PAC, chaired by Ipoh Timor Member of Parliament Wong Kah Woh, insisted for the report to be released in full, while Hishammuddin said the Ministry of Defence (Mindef) has nothing to hide.

In 2011, Boustead Naval Shipyard Sdn Bhd (BNS) received a letter of award from Mindef to deliver six LCS as part of its fleet renewal plan. BNS, which is an indirect subsidiary of Boustead Holdings Bhd, is controlled by the Armed Forces Fund Board (LTAT).

On Aug 4, the PAC announced the findings of its investigation into the matter. Among other things, the committee found that even though the Royal Malaysian Navy should have received five ships by this month, no vessels had been delivered yet despite the government having spent RM6 billion on the project.

According to LTAT chief executive officer, Datuk Ahmad Nazim Abd Rahman, RM6.1 billion out of the RM9 billion paid by the government to build six LCS was used to buy equipment on a "bulk order" basis.

In a Facebook posting on Tuesday (Aug 9), Nazim said the "bulk order" ensured cost savings in constructing the ships, which had to be built concurrently.

The LTAT chief said a huge portion of the RM9 billion contract went to the basic design and detailed design carried out by Naval Group, a major player in the French naval sector.

Nazim added that the cost of building one LCS was estimated at RM1.5 billion, lower than how much other nations spent on similar vessels.

BNS said on Aug 5 it would give its full cooperation to the authorities to ensure that the LCS project would continue for the sake of national defence.

Edited ByLam Jian Wyn
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