MACC: Investigation papers on individuals linked to LCS project completed

KUALA LUMPUR, Aug 11 — The Malaysian Anti-Corruption Commission (MACC) has completed several investigation papers on individuals linked to alleged discrepancies found in the handling of the Littoral Combat Ship (LCS) construction project.

In a statement today, the MACC said the investigation papers were submitted to the Attorney General’s Chambers (AGC) with a recommendation from the MACC to consider charges against several individuals.

“Next, the MACC will receive further instructions after the Attorney General’s Chambers have scrutinised the investigation papers,” the MACC said.

The LCS project is the largest procurement in the history of the Ministry of Defence (Mindef) with a total cost of RM9 billion.

The said contract began in 2013 with a 10-year time frame and six LCS ships were expected to be built and delivered to the country by the end of 2023.

Cost overruns for the LCS project totalled RM1.4 billion, with RM400 million used to pay old debts from an old patrol vessel project, Public Accounts Committee (PAC) chairman Wong Kah Woh said on August 4.

The issue was first reported in the Auditor General’s Report 2019 Series 1 (Ministry/Federal Department Compliance Audit) and the Investigation Report of the Government Governance, Procurement and Finance Investigation Committee (JKSTUPKK), published in 2019.

Umno Online said that the former commander of the Royal Malaysian Navy (RMN), Tan Sri Abdul Aziz Jaafar, and the main contractor of the LCS ship project BNS (Boustead Naval Shipyard Sdn Bhd) would be summoned to appear before the PAC next month.

According to Wong, the appointment of BNS as the contractor, was carried out through direct negotiations and until last October, a total of RM6.083 billion had been paid, and not one LCS ship had been built, even though, according to the schedule, two LCS ships should have been built so far.