MACC told to speed up probe on LSC project

SHAH ALAM - The Malaysian Anti-Corruption Commission (MACC) has been told to speed up probe over the construction of the RM9 billion littoral combat ship (LCS) project.

Prime Minister Datuk Seri Ismail Sabri Yaakob said the attorney-general should prosecute and bring those responsible to justice if there are evidence of wrong doing in the project

"I have called Attorney-General Tan Sri Idrus Harun and MACC Chief Commissioner Tan Sri Azam Baki after the Cabinet meeting to immediately act in accordance with the decision of the meeting," he said in a statement today.

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.