PAC chief chides BNS CEO's nonchalance on 'obsolete' equipment

 

Boustead Naval Shipyard Sdn Bhd (BNS) chief executive officer (CEO) Azhar Jumaat has issued contradictory statements regarding obsolete equipment meant for the littoral combat ship (LCS) project, said Public Accounts Committee (PAC) chief Wong Kah Woh.

Yesterday, Azhar told the press during a media tour of the BNS facilities in Lumut, Perak, where the LCS were being built, the PAC's conclusion was "not entirely accurate" after the committee said 15 percent of the equipment in BNS’ warehouse was obsolete

According to Azhar, there was obsolete equipment, but they were not mission or combat critical, such as smart TV units meant for the sailors' entertainment.

"It is not fair to compare a television set to mission-critical equipment such as guns and missiles," he said.

In a statement today, Wong said Azhar was the person who came up with the "15 percent" figure during the latter's testimony to the PAC on Dec 11, 2021.

"After nine months, is BNS now saying that the only obsolete equipment is the TV and not other equipment?" the PAC chief asked.

BNS chief executive officer Azhar Jumaat

The PAC report on the procurement of the LCS did not deliberate on the "15 percent" in detail. However, as Wong pointed out, several other witnesses told the PAC that obsolete equipment was a problem for the project.

The navy's former head of the LCS project, Mohd Shaiful Adli Chung Abdullah, told the PAC that the warranty for some equipment had lapsed before they could be installed because the construction of other parts of the ship was delayed.

Similarly, chief secretary to the Defence Ministry Muez Abdul Aziz said obsolete equipment would cause the contractors to claim more money to extend the warranty period.

Boustead Heavy Industries Corporation (BHIC) independent director Saadatul Nafisah Bashid Ahmad told the PAC that as the owners of BNS, they had set up a special committee to study the LCS project inventory.

"We have a committee looking into the assets (to determine) what still can be used, what assets are already obsolete and which assets require the warranty period to be extended," she said.

To Wong, these witnesses would not have spoken about "obsolete" equipment and warranty issues if it only involved television sets.

"As a taxpayer, I really hope the obsolete equipment is just the TVs. However, the witnesses who testified before the PAC indicate that the problem with obsolete equipment is very serious, contrary to the position held by BNS today," he added. - Mkini