SHAH ALAM: The Public Accounts Committee has made public its report on the LCS today which covers the period from October 2022 to May 2023. The report did not reveal anything much of about the project apart from confirming in a roundabout way that the LCS cost will go higher due to the nationalisation of the Boustead Naval Shipyard (BNS), the builder of the ships.
It must be noted that the report stated that the extra RM2 billion added to the original ceiling price of RM9.1 billion was due to the delay in completing the project and not the new equipment (see graphic below). Nor the liabilities incurred by BNS and its debt to its parent company as I posted here.
Yes, the government could always say that the cost is RM11.2 billion as announced last May and repeated in in the PAC report but it will be much higher as stated here and here.
As the report is from October last year and May, this year, unfortunately, there is no statement on whether work on the LCS has resumed or not. The report did acknowledge that no work was done on the ships until this June.
The only thing surprising in the report was that the sixth supplemental agreement signed by the Defence Ministry and the BNS/BHIC in May, before it was vetted and approved by the Attorney-General Chambers.
Kedua, sebab tadi kita mendengar juga kan, Yang Berbahagia Datuk Dr.
Shahrazat bahawa perjanjian perlanjutan keenam telah pun ditandatangani.
Sememangnya wakil daripada Peguam Negara telah berjumpa dengan pihak-pihak
berkenaan untuk berunding. Walau bagaimanapun, draf perjanjian yang diberikan
kepada pihak MINDEF sebenarnya memerlukan tindakan lanjut untuk dikemukakan
kembali kepada Jabatan Peguam Negara. Walau bagaimanapun, ia telah pun telah
ditandatangani. So, hanya untuk rekod Tuan Pengerusi. Terima kasih.
Posted as images (above) are the executive summary of the PAC report. If you want to read the full report, please go to the Parlimen Malaysia website. Below are images on the latest schedule for the LCS and the cost of the ships based on the latest contract.
The schedule above was part of the supplemental contract signed last May and only made public due to the PAC report.
— Malaysian Defence