Options Two and Three for LCS

SHAH ALAM: The Cabinet has decided to go forward with options two and three for the LCS project, says Defence Minister DS Ismail Sabri told Parliament yesterday. He said the Cabinet had decided to drop option one from the consideration. Ismail had told Parliament in August back that the ministry had offered to the Cabinet three options to revive the LCS project.

Option one was to get Naval Group – the state owned French company and design authority – to act as the main contractor replacing Boustead Naval Shipyard (BNS) or option two allow BNS – a Malaysian state owned company and main contractor for the LCS – to complete two ships for another RM3 billion. The third option was to find another company to revive the project.

Maharaja Lela was sprayed with sea water as part of the launch gimmick. This was the closest she got to the sea.

Ismail said the Cabinet had decided not to take option one and considerations was still on-going for the second and third options. From the Hansard

Jadi, ada tiga opsyen yang kita cadangkan kepada Kabinet. Pertama, supaya syarikat French Naval Group yang menjadi pemegang kepada design ini, ia meneruskan kontrak ini. Itu opsyen yang
pertama.Opsyen kedua, kita serahkan semula kepada Boustead Shipyard untuk
meneruskan projek. Kalau LCS diteruskan oleh Boustead Shipyard, kita terpaksa
release kan RM3 bilion lagi. Sebenarnya projek ini RM9 bilion, RM6 bilion memang telah
digunakan, tinggal RM3 bilion lagi. Kita terpaksa beri kepada mereka untuk meneruskan
projek. Ketiga adalah tamatkan kontrak, kita lantik syarikat lain sebagai syarikat
penyelamat. Jadi, dalam keputusan yang dibuat oleh Kabinet, opsyen pertama kita kata,
kita tidak perlu gunakan opsyen pertama, tidak perlu memilih opsyen yang pertama. Ada
dua opsyen saja. Boustead Shipyard, mungkin kita boleh beri mereka peluang. Akan
tetapi Boustead Shipyard perlu membentangkan dari segi perancangan mereka kalau
kita berikan kebenaran mereka untuk teruskan kontrak, itu untuk long term. Akan tetapi untuk short term, jangka pendek, tindakan-tindakan diambil.
Pertama, melaporkan kepada SPRM. Kedua, menyerahkan kepada PAC supaya
menyiasat. Ketiga, forensic audit mesti dilakukan. Keempat, due deligence, kalau kita
hendak bagi kepada mereka, adakah mereka mempunyai kemampuan lagi? So, due
deligence mesti dilakukan dan laporan akan dikeluarkan. Kelima, revamp. Semua
pengurusan tertinggi di dalam Boustead Shipyard dan yang seterusnya kalau ada di
dapati kes yang melibatkan penyalah gunaan, domestic enquiry akan diteruskan. Ini
untuk short term. Akan tetapi long term, kita akan tunggu lagi cadangan yang akan
dibuat oleh Boustead Shipyard ini, apa yang sepatutnya dilakukan seterusnya.

Egyptian Navy EL Fateh Gowind 2500 corvette.

Based on the statement from the minister, it appears that SPRM lodged Boustead two months ago was part of the plan to revive the project. To be honest I have no idea why they want the Public Accounting Committee to investigate further about the project as the AG had already done an audit report on the project.
The LCS major equipment detailed. RMN graphic

It is likely that the government, if it is not superseded by a new one, any revival of the LCS project – approval and budget – will only be firmed up in the RMK12. The RMK12 is supposed to be announced in the new year.

— Malaysian Defence

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