Probe missing RM1 billion in combat ship project, Liew urges govt

 

Liew Chin Tong questions the government for willing to let vendor deliver only two ships when payment has already been made for four ships.

PETALING JAYA: Former deputy defence minister Liew Chin Tong has urged the government to investigate the missing RM1 billion linked to six warships that were ordered by the navy.

Liew, who is also a senator, said the missing funds were a serious matter and should be returned so that the littoral combat ship (LCS) project could be completed.

“Once the parties involved are brought to justice, the government should consider injecting funds to ensure the project can be completed for the navy’s use, to continue protecting the sovereignty of our waters,” he said in a statement today.

Liew told the Dewan Negara in September that Putrajaya’s special investigation committee on procurement, governance and finance, had discovered that RM1 billion of the RM5.94 billion paid for the warships could not be traced.

He said Deputy Defence Minister Ikmal Hisham Abdul Aziz had agreed that a forensic audit on the missing funds must be done, and that the recovered funds should then go towards the completion of the ships while also allocating more money for the project.

“Aside from the deputy minister’s acknowledgement of my proposal, the government has yet to announce a clear decision to set the direction for this project.

“I want to urge the government again to not waste any more time and to make the right decision quickly,” Liew said.

In August, Defence Minister Ismail Sabri Yaakob said the ministry was considering three options to resolve the delay in the delivery of six LCS units, as Boustead Naval Shipyard Sdn Bhd (BNS) had completed none of the orders.

These options were for the appointment of Naval Group France as a rescue contractor to complete at least two LCS units; the completion of at least two units by BNS with the remaining contract ceiling; or the termination of the contract with BNS.

Liew raised questions about this proposal as the navy would only be getting two ships out of the six ordered despite paying two-thirds of the RM9 billion ceiling cost.

“With this amount, four ships should be completed instead.”

The project, worth more than RM9 billion, was awarded in 2014 and the order was for six LCSs to be constructed.

The first ship should have been delivered in April 2019, but not one ship has been built although the government had already paid the company RM6 billion. - FMT