PAC to call Ahmad Zahid to complete probe into non-delivery of LCS

PAC chairman Wong Kah Woh said also to be called were former Royal Malaysian Navy chief Tan Sri Abdul Aziz Jaafar and the main contractor of the LCS project, Boustead Naval Shipyard (BNS) Sdn Bhd.

“The appointment of BNS Sdn Bhd was made through direct negotiation, and as of October this year, RM6.083 billion has been paid but none of the LCS has been built. If according to the schedule, two LCS should have been built by now,” he told a press conference at the Dewan Rakyat today.

Wong said the issue was reported in the Auditor-General’s Report 2019 Series 1 and the Governance, Procurement and Finance Investigation Committee (JKSTUPKK) Investigation Report published last year

He said the PAC would also visit the LCS shipyard in Lumut, Perak next month.

“The PAC views seriously the issue of the non-delivery of the six LCS involving the Ministry of Defence (Mindef) and a procurement value of RM9 billion...as it reflected weaknesses in terms of governance, procurement and finance, which will give negative impact on national security and defence,” he said.

Wong said the PAC was also of the opinion that a decision on this issue must be made by the government as soon as possible, hence the need for the Committee to complete the proceedings and to table its report at the Dewan Rakyat.

He said several witnesses had been called the four meetings and proceedings conducted so far, including Auditor-General Datuk Nik Azman Nik Abdul Majid, Mindef’s Defence Secretary-General Datuk Seri Muez Abdul Aziz, and JKSTUPKK chairman Tan Sri Ambrin Buang.

“The PAC plans to complete and table its report on this issue at the Dewan Rakyat by March 2021,” he added.