LCS report textbook case on how not to procure assets, says PAC chief

LCS report textbook case on how not to procure assets, says PAC chief

Wong Kah Woh recounts the visit by members of the Public Accounts Committee to Boustead Naval Shipyard Sdn Bhd's dockyard in December.

Members of the Public Accounts Committee led by its chairman, Wong Kah Woh, during their visit to Boustead Naval Shipyard Sdn Bhd’s dockyard in Lumut, Perak, last December. (Wong Kah Woh Facebook pic)
PETALING JAYA:
The Public Accounts Committee’s (PAC) report on the troubled littoral combat ship (LCS) project should serve as a textbook case on how not to conduct defence procurements, says its chairman.

Expressing “sorrow” over the LCS scandal, PAC chief Wong Kah Woh recounted how the committee had visited Boustead Naval Shipyard Sdn Bhd’s (BNS) dockyard in Lumut, Perak, in December last year.

The PAC team visited its warehouse and storehouses which stored LCS-related and general equipment, from ammunition to ship parts and even smart televisions.

Wong said he could not help but question how BNS, which was given the RM9 billion LCS project contract through direct negotiations, ended up in its current position.

“It is more than mismanagement or poor management. Something is gravely wrong with those who were in power and those who got the contract,” he said in a Facebook post.

“There are no longer (any) workers at the (shipyard). No locals, no foreigners, no contractors. (It was) totally stalled,” he had said after the visit, adding that it was “heartbreaking”, given that RM6 billion was already spent by Putrajaya for the LCS.

“The absorbing horror story in the whole process of the LCS project shall serve as a lesson to all those who are in power, now and in the future.”

Last week, the PAC said not a single LCS ship had been completed although Putrajaya had already paid RM6 billion for the RM9 billion project.

The PAC report said BNS’ financial position was in a weak and critical state, due to abuse of power and deficiencies in its financial management.

It also found that the government’s payments to BNS were not entirely used for the LCS project, resulting in a cost overrun of RM1.4 billion.

Yesterday, the Malaysian Anti-Corruption Commission (MACC) said it has completed several investigation papers on individuals involved in the controversial project and has referred the matter to the Attorney-General’s Chambers (AGC).

MACC also said it has recommended that several individuals linked to the project be charged in court.

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