Malaysia warship procurement scandal: Vessels expected to be completed by July 2024
The first littoral combatant ship (LCS) Maharaja Lela was launched at an event at the naval shipyard in Lumut, Perak, in 2017. (Photo: Bernama)
KUALA LUMPUR: Malaysia’s controversial littoral combat ships (LCS) procurement project will continue, with the first vessels scheduled to set sail as soon as July 2024, said Defence Minister Mohamad Hasan on Thursday (Jan 5).
“We are not interested in suing anybody or putting someone behind bars, (but) what I’m only interested in is to see the ships in our waters by July 2024,” he was quoted as saying by Bernama when delivering his new year’s message at the Ministry of Defence (MINDEF) headquarters.
Mr Mohamad Hasan, also known as Tok Mat, said the RM9 billion (US$2 billion) procurement project is an important asset to the country.
“We will base our consideration purely on commercial consideration. We want to make sure the ships are completed.
“If it is not all six, four would be enough so long as they are completed during my tenure in MINDEF,” he said.
Mr Mohamad Hasan, who was recently sworn in as the defence minister, said he will continue efforts to see the project through.
“We will take this to the finance and economic ministries for further consideration and discuss the full picture (of the project),” he said, according to the Malay Mail.
The Defence Ministry is expected to receive an allocation of RM17.4 billion in Budget 2023, which is scheduled to be unveiled in February.
Of that sum, Mr Mohamad Hasan reportedly said that RM11.4 billion will be channeled into maintaining current expenses and RM5.9 billion will go to housing assistance for veterans.
He added that the ministry will continue its procurement projects for the Maritime Patrol Aircraft (MPA) and Medium-Altitude Long Endurance Unmanned Aircraft System (MALG UAS). Meanwhile, the procurement of the Light Combat Aircraft (LCA) and the Littoral Mission Ship (LMS) is likely to be completed by the end of the year.
In August last year, the Malaysian parliament's Public Accounts Committee (PAC) tabled a report on the procurement of littoral combatant ships, two years after starting a probe into the RM9 billion contract.
The committee said the project to construct six ships was awarded by the Ministry of Defence to Boustead Naval Shipyard through direct negotiation. The government has paid RM6.08 billion or 66.65 per cent of the cost so far.
"However, not even one of the LCS ships has been delivered. According to our timeline, five LCS ships should have been completed and handed over to us by August 2022,” said PAC chairman and then Ipoh Timor Member of Parliament Wong Kah Woh.
The issue first drew public attention in August 2020 during the tabling of the 2019 auditor-general’s report in parliament. Altogether, the PAC held nine rounds of proceedings from November 2020 to March 2022.
Among those called up to the proceedings were former defence minister Ahmad Zahid Hamidi who is currently one of Malaysia’s deputy prime ministers.
Also called up to the proceedings were then-defence minister Hishammuddin Hussein who also held the position from May 2013 to May 2018, former navy head Admiral Abdul Aziz Jaafar and officials from Boustead subsidiaries.
Former prime minister Najib Razak, who was Ahmad Zahid’s predecessor for the defence portfolio, has also been linked to the scandal.
