Ismail blames Harapan for naval ship fiasco

 

Defence Minister Ismail Sabri Yaakob today said the government was compelled to continue the contract for the RM9 billion littoral combat ships (LCS) project which had been hit by cost overruns and delays.

In a statement today, Ismail pinned the blame for this squarely on the previous Pakatan Harapan government for what he claimed was slow decision-making, resulting in the delays.

Ismail said this in response to criticisms by his predecessor Mohamad Sabu and former deputy defence minister Liew Chin Tong who had questioned the plan to revive the beleaguered project.

The project was subject to investigations by the Parliamentary Select Committee on Defence and Home Affairs in January and February 2020. The committee was disbanded before its report could be tabled in Parliament.

According to Ismail, Boustead Naval Shipyard Sdn Bhd had offered three proposals between 2018 and 2019 to the Harapan government to which the Defence Ministry was agreeable to though it left the final decision to the Finance Ministry.

"However, there was no final decision by the Finance Ministry," he said. "Mohamad's statement is merely a political provocation and it shows his immaturity."

Ismail said Mohamad and Liew were wrong to claim that the revival of the LCS project was done merely to benefit the contractor as 8,000 jobs were on the line.

So far, the government has spent RM6 billion on the project which may not be fully refundable and the government would incur more cost and delays if a new contractor was appointed, he said.

Defence Minister Ismail Sabri Yaakob

"The interest of Royal Malaysian Navy and the government have been taken into consideration and this has become the premise of the consideration.

"As a responsible government, we must also consider the situation, the contractor's capability and the impact to the economy when deciding whether to cancel the project," said Ismail.

"The decision is a win-win for the government, the navy, the Armed Forces Fund Board (LTAT), the Boustead Group and for local defence ecosystem vendors."

He said Boustead Naval Shipyard will complete the detailed design for the ships by end-2022.

The company was awarded the RM9 billion contract in 2011 to build six Gowind-class littoral combat ships developed by the French manufacturer Naval Group France (then known as DCNS). The award was done through direct negotiation.

The first LCS was due to be delivered in April 2019. Former defence minister Ahmad Zahid Hamidi was due to testify in January this year before the Public Accounts Committee on the late delivery but the PAC’s proceedings were disrupted when Parliament was suspended due to a proclamation of emergency.

According to PAC chief Wong Kah Woh, the government has paid out RM6.083 billion to Boustead as of October 2020 but has yet to receive a single ship although two were supposed to be completed by then. - Mkini