Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 8): Senior Defence Minister Datuk Seri Hishammuddin Tun Hussein expressed his frustration concerning the RM9 billion littoral combat ship (LCS) project, but vowed that the first LCS ship will be ready within two years. 

“We are given six months after the Cabinet decision to mobilise efforts to revive this project. It involves engagement with vendors in France and banking agencies, but for this House, I can say that at least within a year or two, I hope that we will be able to complete the first ship.

“I will report (inform) to the public the phased schedule of the ship level (progress) that has already been promised to the Royal Malaysian Navy (RMN), and I will inform the Cabinet of what we have done to ensure this time according to what has been scheduled,” he said in the Dewan Negara on Monday (Aug 8). 

The Sembrong Member of Parliament was replying to a supplementary question from Senator Datuk Razali Idris, who queried on the time frame for the ships to arrive, given that previously, the Ministry of Defence (Mindef) had only explained that the project would continue. 

Meanwhile, Hishammuddin stressed that the LCS project should continue to fulfil the needs of the RMN, as well as to save hundreds of vendors from going out of business, given that many of these vendors are army veterans.

“Those who are wrong will still be brought to justice, and I would like to inform the House that this is something that has been decided by the Cabinet. [We have also given] our cooperation to the Public Accounts Committee (PAC), where we have faced the PAC more than 15 times, not only in the context when I was the defence minister.

“Our plans for the future in six months' [time], [and] three months [afterwards] that I will report to the Cabinet are in full swing,” he said. 

Hishammuddin was responding to a supplementary question by Senator Datuk Husain Awang, who wanted to know what are the solution measures taken by Mindef, as then chief Tan Sri Abdul Aziz Jaafar had already sent a letter of reprimand including the RMN's position regarding the problematic LCS procurement procedures.

“This [matter] has been going on for years. Today at least we have, as per our policy, involved all stakeholders — the RMN, Mindef, the Economic Planning Unit, Ministry of Finance and the Cabinet itself — to try to ensure that our ships reach the RMN, how can we defend our vendors and our veterans can get the outcome [from it]. 

“I know there are many weaknesses. I am also disappointed, many are disappointed, but we must look forward to finding justice, ensuring that the ships can be supplied to the RMN, and finding the best way to ensure that it does not happen again in the future,” added Hishammuddin.

Last Thursday, the PAC released a report on the LCS project, with the committee saying not a single ship had been completed despite the Government spending RM6 billion on the project, which it had awarded to Boustead Naval Shipyard Sdn Bhd (BNS) — a subsidiary of Boustead Holdings Bhd — through direct negotiations.

The RMN should have received five of the ships by August. 

The PAC also found that the Government had not done its due diligence on BNS' financial problems.

This was evidenced by the fact that the Government was required to make an advance payment of up to RM1.36 billion to BNS, contrary to a Treasury circular in effect at the time.

PAC also stated that BNS's financial situation was in a weak and critical state, due to abuse of power and deficiencies in financial management.

Additionally, Abdul Aziz, who was among nine witnesses in proceedings conducted by the PAC on the procurement of LCS worth RM9 billion from BNS, said “something is gravely wrong" with the decision of Mindef and BNS to ignore the RMN's views on combat ships.

PAC chairman Wong Kah Woh said in a statement last Thursday that the maritime force's views as end users of the vessels were not taken into account, which led to the original Sigma design chosen by the Navy being changed to the Gowind design on July 11, 2011, following a suggestion by BNS to the defence minister on July 8 that year.

Umno president Datuk Seri Dr Ahmad Zahid Hamidi was the defence minister at the time.

For more Parliament stories, click here.

Edited BySurin Murugiah
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