Too many unanswered questions about LCS project, says Anwar
The government awarded a RM9 billion contract in 2011 to build six littoral combat ships, but none has been delivered. (Bernama pic)
PETALING JAYA: Opposition leader Anwar Ibrahim has called for answers about the navy’s littoral combat ship (LCS) programme, saying the defence ministry had not answered questions raised in the Dewan Rakyat about the actual cost of the project.
He said the matter should not be taken lightly because the much-delayed project involves a large amount of funds, and must be answered on the basis of transparency.
He urged the defence minister to explain the loss that would be suffered by the Armed Forces Fund Board (LTAT), a shareholder in the RM9 billion project, by the government’s decision to proceed with the project.
The Cabinet decided two days ago to proceed with the LCS project to procure six ships, which began in 2011. However, not a single ship has been delivered.
Defence minister Hishammuddin Hussein said the decision was made after taking into consideration two key factors, namely the ships, based on a French-designed Gowind corvette, were much needed by the navy.
He said 400 vendors were involved in the project, with a financial implication of over RM4 billion.
PETALING JAYA: Opposition leader Anwar Ibrahim has called for answers about the navy’s littoral combat ship (LCS) programme, saying the defence ministry had not answered questions raised in the Dewan Rakyat about the actual cost of the project.
He said the matter should not be taken lightly because the much-delayed project involves a large amount of funds, and must be answered on the basis of transparency.
He urged the defence minister to explain the loss that would be suffered by the Armed Forces Fund Board (LTAT), a shareholder in the RM9 billion project, by the government’s decision to proceed with the project.
The Cabinet decided two days ago to proceed with the LCS project to procure six ships, which began in 2011. However, not a single ship has been delivered.
Defence minister Hishammuddin Hussein said the decision was made after taking into consideration two key factors, namely the ships, based on a French-designed Gowind corvette, were much needed by the navy.
He said 400 vendors were involved in the project, with a financial implication of over RM4 billion.
kt comments: Would that be the objective of the taxpayers'-funded project? Namely, to sustain, maintain 400 vendors but without the need for production? Are we talking Atuk-ism?
Yesterday former defence minister Mohamad Sabu and former deputy defence minister Liew Chin Tong said a special investigation headed by the auditor-general found that only RM5.94 billion had been disbursed, of which at least RM1 billion was unaccounted for.
The contractor for the LCS project, Boustead Heavy Industries Corporation Bhd (BHIC), said today it is committed to ensuring the delivery of the warships by abiding to all requirements of a special monitoring committee.
The ships are being built by its associate company Boustead Naval Shipyard Sdn Bhd.
The Cabinet has set a six-month mobilisation period to restart the project.
BHIC said it is ready to mobilise its team working on the project which will then provide frequent reports on the progress, Bernama reported.
“We have the facilities and experience, and with the support and cooperation of the navy’s LCS project team, our vendors, lenders and the government, we are ready to continue with the project,” said BHIC chief executive officer Sharifuddin Md Zaini Al-Manaf in a statement today.
It is either insanity or corruption to keep throwing good money at a proven non-performing company.
ReplyDeleteAnyone who knows the history of local Naval procurement will understand about the notorious history of Boustead, previously called PSC Naval Shipyard.
Before LCS, there was the notorious failure of the Kedah class OPV. Years late, Billions overbudget , and missing missile armaments. Until today , the Kedah Class OPVs only have their puny foredeck gun, missing the RIM air defence and Exocet antiship missiles.
The Boustead arrangemwnt is basically Government feeding UMNO cronies.
"The contractor for the LCS project, Boustead Heavy Industries Corporation Bhd (BHIC), said today it is committed to ensuring the delivery of the warships by abiding to all requirements of a special monitoring committee".
ReplyDeleteI find this statement a joke. So, were you not committed the ladt 5 years where none of the ships was completed?
Another laughable statement:
"We have the facilities and experience, and with the support and cooperation of the navy’s LCS project team, our vendors, lenders and the government, we are ready to continue with the project,” said BHIC chief executive officer Sharifuddin Md Zaini Al-Manaf in a statement today".
The sad fact is that our MACC and PDRM are only effective when no hidden stakes are involved.
Look at the PDRM's search for Indira Gandhi's daughter and the missing pastors. All we get from the police are tai chi-like statements as to why there are no results.
As for the MACC, I suspect the HK ICAC must have regretted being associated with a "rejuvenated" corruption agency.