Cabinet unanimously agrees to proceed with LCS procurement

 

The cabinet has unanimously agreed to proceed with the project to procure littoral combat ships (LCS) after it met yesterday in a meeting chaired by Prime Minister Ismail Sabri Yaakob.

Senior Defence Minister Hishammuddin Hussein said the decision was made after taking into consideration two key factors, namely that the LCS assets are much needed by the Royal Malaysian Navy as well as there being 400 vendors involved in the project, with a financial implication of over RM4 billion.

“The LCS are assets which are very much needed by the navy, not just for its modernisation under the 15 to five transformation plan, but, more importantly, to raise the armada’s preparedness as well as improve efforts to safeguard the interests of the country’s maritime.

“I believe that the decision will further boost the morale and spirit of navy personnel to continue fighting for the country’s sovereignty,” he said in a statement yesterday.

On the 400 vendors involved, Hishammuddin said over 100 of them were companies owned by Malaysians, with 90 percent linked to armed forces veterans.

The LCS programme is part of the navy’s 15 to five development plan aimed at strengthening the country’s naval assets and all six ships are based on the Gowind design by French company Naval Group (formerly known as DCNS).

Hishammuddin said, besides that, there were several other measures that the government needed to take, including holding negotiations with banks, vendors and the original equipment manufacturer as well as the French government, involving the design and commitment of the French government.

“At the same time, other relevant agencies, including the MACC are also urged to expedite their respective roles to ensure every process runs smoothly,” he added.

Wrongdoers will still be punished

He said the cabinet had also set up a special governance committee that is chaired by the Finance Ministry’s secretary-general of Treasury and the secretary-general of the Defence Ministry to monitor the process of the LCS project for the next six months and to report only the latest developments to the cabinet each month.

“I wish to stress that the decision to continue with the LCS project does not mean those involved in wrongdoing in the project previously would get away scot-free. The MACC has remanded two chief executive officers and the MACC too will be urged to expedite its investigations.

“Anyone found guilty will be brought to justice,” he added.

Hishammuddin said further details on how the project would proceed would be announced from time to time.

- Bernama