LCS equipment not obsolete, just needs maintenance, says BNS CEO

LCS equipment not obsolete, just needs maintenance, says BNS CEO

BNS CEO Azhar Jumaat denies claims made in the Public Accounts Committee report that the equipment, which was purchased in bulk, is no longer usable.

Azhar Jumaat said the equipment purchased for the littoral combat ships was certified for use and can be operated for another 25 years.
LUMUT:
Boustead Naval Shipyard Sdn Bhd (BNS) has denied claims that the RM1.7 billion worth of equipment purchased for the littoral combat ship (LCS) project is obsolete.

BNS CEO Azhar Jumaat said though the equipment had been kept in storage for a prolonged period, it had been properly preserved with regular maintenance carried out.

“Every piece of equipment is also certified for use. It is not obsolete and can be operated for another 25 years. They are all ready to be installed,” he said during a visit to the project site at BNS’ dockyard here, organised for the media.

Azhar was responding to claims by Public Accounts Committee (PAC) chairman Wong Kah Woh who alleged that the equipment, which was purchased in bulk, is no longer usable.

Azhar Jumaat.

Yesterday, Wong said the report on the troubled LCS project should serve as a textbook case on how not to conduct defence procurements.

Expressing “sorrow” over the LCS scandal, Wong recounted how the committee had visited BNS’ dockyard 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 television sets.

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

On Thursday, the Malaysian Anti-Corruption Commission (MACC) said it had completed several investigation papers on those involved in the project and had referred the matter to the Attorney-General’s Chambers.

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

Last week, the PAC said not a single LCS 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.

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