Pakatan Harapan’s Mohamad Sabu and Liew Chin Tong said the Cabinet’s decision to continue the project, which had been delayed since 2019, seemed to be more in the interests of the contractor and sub-contractor, Boustead Naval Shipyard (BNS).
They said defence minister Ismail Sabri Yaakob’s statement yesterday did not mention the navy or its equipment needs at all, adding that the purpose of the project should be to develop the defence system and provide the ships the navy needs.
“The Cabinet’s failure to make the needs of the navy its main consideration in this matter is very disappointing,” they said in a joint statement today.
They also urged the government to avoid repeating its past failures in continuing the project, calling for a timeline and schedule for the completion of the construction of the ships.
They also listed other factors that needed to be considered, such as the detailed design of the ships and whether these had been approved by the design authority, DCNS Naval Group.
“Secondly, what’s the status of the RM1 billion of funds that went missing from the project’s account? What’s the status of the forensic audit?
“Last December, the defence minister said both matters were being worked on. What’s the status of investigations?
“Has the missing money been returned? If not, what measures will the government take to fill this financial gap?”
They also said former prime minister Dr Mahathir Mohamad had ordered the Malaysian Anti-Corruption Commission to probe the missing money.
They asked how many ships the government would be getting if no additional funds could be channelled, saying it was unreasonable for the navy to receive fewer than four ships when two-thirds of the ceiling price had been paid.
“We urge the government to take a more holistic approach in this issue. Every failure and hindrance faced in managing this project needs to be checked and probed.”
Ismail had said the continuation of the project would save 1,600 Malaysians working on the project from losing their jobs and sustain more than 400 vendors, comprising Bumiputera small and medium entrepreneurs.
He also said the Armed Forces Fund Board (LTAT), a shareholder in Boustead Holdings Berhad, and other contributors to the board, who are military personnel, would also be affected if the project did not continue.
It was previously reported that the defence ministry had conducted an in-depth investigation on the failure by BNS, a subsidiary of Boustead Holdings Berhad, to supply six littoral combat ships to the Royal Malaysian Navy.