LCS fiasco: Minister says project will proceed based on PAC's suggestions

 

Defence Minister Hishammuddin Hussein said his ministry and all related stakeholders would take into account recommendations made by the National Public Accounts Committee in proceeding with the procurement of the littoral combat ships (LCS).

“I take note of PAC findings on the LCS project released earlier today.

“We, at the Ministry of Defence (Mindef), have given full cooperation and remain transparent while attending proceedings and PAC’s investigations process,” the Sembrong MP said in a statement.

This came after the PAC chairperson Wong Kah Woh issued a statement earlier today regarding the committee’s findings, which examined the handling of the LCS project, which has been ongoing since 2011.

Wong pointed out that not a single ship had been completed, although Putrajaya had spent RM6 billion over the project given to Boustead Naval Shipyard Sdn Bhd (BNS) via direct negotiations.

He added that the navy’s view was ignored by the Defence Ministry and Boustead Naval Shipyard Sdn Bhd (BNS).

PAC chairperson Wong Kah Woh

Hishammuddin said the cabinet had in April agreed to the LCS Recovery Plan that allows for a six months mobilisation period, allowing for discussions with original equipment manufacturers and vendors, subsequently finalising the LCS procurement plan as needed by the navy.

He said the cabinet also agreed to form a special governance committee chaired by the Treasury secretary-general, Finance Ministry’s secretary-general and Mindef’s secretary-general to oversee the mobilisation process and report to the cabinet.

“On the weaknesses and misappropriation, I have consistently stressed that anyone who is guilty will remain guilty.

“MACC investigations are still ongoing, and this means the parties involved in any wrongdoings in the previous project will not get away,” he said.

Hishammuddin pointed out that the PAC had suggested that MACC expedite its probe and press charges.

“Moving forwards, the most important thing now is to ensure this LCS project can go on smoothly.

“The LCS assets are highly needed for the security of the country’s waters, in line with the Armada Transformation Programme 15 to 5, and for the interest of the navy,” he said.

PKR deputy president Rafizi Ramli earlier claimed that an internal investigation showed that at least RM890 million had been misappropriated from LCS, both in terms of fraud and money transferred to parties, with the aim of defrauding the contract, duplication of contracts with multiple claims, and various other irregularities. - Mkini