Govt agrees to declassify panel report on LSC

SHAH ALAM - The Cabinet has agreed to declassify the governance, procurement and finance investigation committee’s (JKSTUPKK) report on the littoral combat ship (LCS) project carried out in 2019.

Prime Minister Datuk Seri Ismail Sabri Yaakob said the Cabinet meeting held today also decided that the JKSTUPKK report chaired by the former Auditor General Tan Sri Ambrin Buang to be released to the public.

"However, this process needs advice and the opinion of the attorney-general and the Auditor-General first," he said.

He further said: "the government is committed to continue this project in the interest of national defense in line with the requirements of the navy.

"I, on behalf of the government, guarantee that the investigation into this issue will be carried out transparently and that the government will not protect anyone involved," he said.

On Aug 4, the Public Accounts Committee (PAC) had said the government paid RM6.083 billion for five LCS to Boustead Naval Shipyard Sdn Bhd (BNS) for the direct-negotiation project, but none of the ships were delivered.

The PAC, in its report said it had received the competitiveness report on BNS by the government which was conducted to detect financial problems of the company responsible for the construction of the five ships.

The first LCS was scheduled to be delivered in 2019 but only 44 per cent was completed, according to the PAC report.

The Defence Minister Datuk Seri Hishammuddin Hussein said his ministry will examine the PAC report.

Cost overruns for the LCS project totaled RM1.4 billion, of which RM400 million was used to settle outstanding debts from an earlier patrol vessel project, according to PAC chairman Wong Kah Woh.

On Aug 10, former Defence Minister Datuk Seri Ahmad Zahid Hamidi said he was ‘directly involved’ in drafting the project's recovery plan with the defence ministry and the navy after denying links to the project.

The former deputy prime minister said under the current contract, the construction of the six ships must be done concurrently.

"Not build 1, deliver 1," he said, referring to the six ships.