Shipbuilder to provide LCS progress reports every 3 months

Shipbuilder Boustead Naval Shipyard Sdn Bhd (BNS) said they will be providing progress reports on the littoral combat ships (LCS) project to the government every three months.

BNS will also work with the project monitoring committee, which is co-chaired by the secretary-general of the Treasury and the secretary-general of the Defence Ministry, for added governance.

“BNS credits the Malaysian government for taking a decisive step in continuing the LCS project which is a reflection of its firm commitment towards the enhancement of the country’s defence capabilities.

“The LCS project is not only vital to the security of our maritime border but also the growth of our maritime economy.

“With due considerations to the national significance of this project, BNS will focus all its efforts towards readying the first ship for sea acceptance trials by 2024,” said BNS chairperson Nazim Rahman in a statement today.

He also welcomed the Public Accounts Committee’s (PAC) upcoming visit to the naval base in Lumut, Perak to check on the current progress of the LCS project.

Under a new supplemental agreement inked between the government and BNS last month, Putrajaya agreed that the number of vessels be reduced to five instead of six.

The total contract price was initially RM9 billion for six vessels.

The LCS project began in 2013 but after RM6 billion was spent, BNS missed the 2019 deadline to deliver the first ship.

As of last year, construction of the sixth vessel has yet to begin and none of the vessels have progressed beyond the 50 percent mark.

A PAC probe on the matter revealed that the navy’s requirements for the project were ignored by the government and due diligence failed to establish BNS’ financial difficulties.

After public outrage over the LCS scandal, the PAC continued with its monitoring of the project. - Mkini