SHAH ALAM: The Public Accounts Committee (PAC) of Dewan Rakyat has published its latest report on the LCS project today. The report covers the period of June and September, this year, is available on the Dewan Rakyat website.
The last report covered the period between October 2022 and May, this year. As there was no progress between the two period, the committee had determine that there was no need to publish its report every three months.
Anyhow, the latest report confirmed that the work – called remobilisation – on the LCS had started at Boustead Naval Shipyard (BNS) at Lumut on September 25. Newly appointed Defence Ministry secretary general DS Isham Ishak had also testified at the latest PAC proceedings.
The report also revealed that Naval Group had not completed the verification work of BNS design work as the company has not been paid. This means that the design work has stopped at 84 per cent due to the payment’s issue. This resulted in the progress of the LCS project is now behind by seven per cent though those who testified stated that they were confident that it will returned to schedule.
It was also revealed that four of the PISM mast for the LCS are currently stored at BNS warehouses while the fifth one has not been ordered yet.
The PAC was told that the nationalisation of BNS should have been completed by November 1. However, we know that it has not been completed.
It must be noted that the PAC stated that the cost of the LCS project now stands at RM11.2 billion due to the additional costs (RM2.098) signed with the sixth supplementary contract.
The report did not say anything about the other payments needed for the government to absorb BNS into its wholly-owned company – Ocean Sunshine Sdn Bhd.
— Malaysian Defence