SHAH ALAM: Despite the claims by Defence Minister DSU Mohamad Hasan that the first LCS will be completed by late next year, his latest statement in Parliament showed that it might not be the case. He told Parliament yesterday that a third party (likely one of the international companies involved) wanted a letter of indemnity before it takes part in the resumption of the project.
Mohamad said the ministry was not keen on it (issuing the letter of indemnity) and had refer the matter to the Attorney General’s Chamber for advice. He said the third party wanted the indemnity letter as a guarantee it will not be held liable or blame in the future if something occurs with the project.
The minister said the third party will not sign the international settlement agreement (necessary to restart the LCS project) without the guarantee. From The Edge:
KUALA LUMPUR (Feb 22): The Defence Ministry (Mindef) will refer to the Attorney General’s Chambers (AGC) on the international settlement agreement regarding the construction of littoral combat ship (LCS).
Its minister Datuk Seri Mohamad Hasan said this after a third party asked the government to sign a letter of indemnity as a condition before the party signed the international settlement agreement.
He said the letter was to enable the party to be released from all responsibilities or blame should any mitigation factors occur in the future.
“It (the indemnity letter) is an issue that we are very reluctant to sign. We will refer to AGC to get advice on the caveat they placed for them to agree to sign the international settlement agreement.
Clearly, we are in an impasse, which is likely fatal for the LCS project. If one party wanted indemnity, it is likely others will also want one as well. Clearly it is time to abandon the whole thing and start anew. But I guess, the government sees it in a different way.
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— Malaysian Defence