LCS issue: Ex-navy chief fails to quash 3 CBT charges

LCS issue: Ex-navy chief fails to quash 3 CBT charges

Published: Jul 26, 2024 1:02 PM


A former high-ranking officer of Boustead Naval Shipyard (BNS) failed to quash three criminal breach of trust (CBT) charges linked to the littoral combat ship (LCS) issue.

The Kuala Lumpur High Court today dismissed retired Royal Malaysian Navy chief Ahmad Ramli Mohd Nor’s striking-out application.

However, judge Azhar Abd Hamid ordered an assessment of the 80-year-old accused’s fitness to stand trial.

Ramli (above) had sought to strike out the criminal case on the grounds of him suffering from a “progressive neurodegenerative” condition and “moderate mixed dementia”.

The ruling means the Kuala Lumpur Sessions Court has to assess whether the accused is fit to stand trial.

Supporting affidavit

According to a supporting affidavit by the accused’s daughter, Rinnie Nor Ahmad Ramli, a medical examination at Al-Sultan Abdullah Universiti Teknologi Mara Hospital showed he was suffering from a “progressive neurological condition that impairs his recent memory and attention span”.

She pointed out that her father’s neurological condition would render him unable to defend himself by providing an accurate version of events.

“The applicant (Ramli) would not be able to recall events or what would be raised during trial. The applicant is not capable of giving a consistent testimony.

“The applicant would not be able to give accurate and effective directions to his lawyers.

“The applicant’s neurological condition is progressive and continuous, as well as would become worse in the course of the trial.

“There is a major risk that the applicant’s health would be further jeopardised during trial,” Rinnie said.

The charges

BNS was the contractor tasked to build six LCSs for the Royal Malaysian Navy. Ramli was the company’s former managing director and vice-executive chairperson.

He is charged with three CBT counts involving RM21.08 million under Section 409 of the Penal Code.

The CBT charge under Section 409 of the Penal Code carries a maximum jail term of 20 years and a fine.

For the first count, Ramli was accused of fraudulently approving three different transactions amounting to RM13,541,140 from July 26, 2010, to March 25, 2011.

The transaction was allegedly sent to an account belonging to Syarikat Setaria Holding Limited at Standard Chartered Bank in Singapore.

On the second count, Ramli was accused of fraudulently approving a payment - amounting to RM1,360,716 - to JSD Corporation Pte Ltd at the Overseas-Chinese Banking Corporation Limited, in Singapore.

For the third charge, he was accused of fraudulently approving a payment amounting to RM6,182,295 to Sousmarin Armada Ltd at Standard Chartered Bank, 6 Battery Road in Singapore between the dates of Oct 28, 2010, and Nov 22 that same year.

All three transactions were alleged to have taken place without the company board’s approval.

Further, all offences were purported to have taken place at BNS, 17th Floor, Menara Boustead, 69 Jalan Raja Chulan, Kuala Lumpur, between July 26, 2010, and May 4, 2011.

Cost overrun

In August 2022, the Public Accounts Committee in its report revealed a huge overrun in cost amounting to RM1.4 billion in the RM9 billion LCS contract, with RM6 billion paid as of 2020.

Despite the government having paid such a huge amount, none of the ships has been completed after eight years. The project started in 2014.

Ramli had served in the Royal Malaysian Navy for 35 years and was named navy chief in October 1996. He retired in 1998.

He was later appointed to the Boustead Heavy Industries Corp Bhd Board on Aug 17, 2005. He resigned from the board on Nov 30, 2019.

The criminal case will come up for mention before the Sessions Court on Tuesday next week.

Ramli, who is out on bail, is represented by counsel Mohd Yusof Zainal Abidin.

Deputy public prosecutor Mahadi Abdul Jumaat prosecuted.