Defence minister Hishammuddin Hussein, when winding up the debate on the motion related to the issue in the Dewan Negara today, gave an assurance that he would brief the Cabinet on the matter.
“This is my responsibility to present the proposal to the Cabinet on Wednesday and I will do it. The Cabinet also needs to present it to the Yang di-Pertuan Agong,” he said.
He said this in his reply to several members of the Dewan Negara who urged the government to establish an RCI to examine all aspects of the project so that those guilty would be held accountable.
Hishammuddin also said that based on the Cabinet’s decision in April, the defence ministry (Mindef) would continue the LCS project for the benefit of the navy.
Therefore, he said, Mindef would ensure that the mobilisation phase would be implemented well to enable Boustead Naval Shipyard Sdn Bhd (BNS) to start negotiations with the original equipment manufacturers in Europe and local vendors, from June 20 to Dec 21.
Hishammuddin also explained that there was no additional provisions for the six-month period of the mobilisation process, and there was no need for the project to be continued by other companies because it would further delay the project.
He said the government also decided to establish a special governance committee, which will be chaired by the secretaries-general of the treasury and defence ministry, to closely monitor the process for the next six months.
Meanwhile, Hishammuddin said the Prime Minister’s Department had started the process of declassifying the report of the governance, procurement and finance investigation committee (JKSTUPKK), and it should be completed soon.
Regarding the LCS forensic audit report, he said the Cabinet was waiting for the response from the Attorney-General’s Chambers and the national audit department since the forensic audit was carried out by BNS and not the government.
Earlier, senator Lim Hui Ying tabled the motion for the Dewan Negara to debate the report of the Public Accounts Committee (PAC) on the procurement of the LCS.
A total of 10 members of the Dewan Negara debated the motion, including senators Razali Idris and Zahid Md Arip, who urged the government, among others, to establish an RCI for the LCS project.
They believed that an RCI could provide transparency in the investigation of the project and provide confidence to the people.
Meanwhile, Hishammuddin said four littoral mission ships (LMS) had been delivered, adding that the second batch of LMS would likely be supplied with weapons so that the LCS issue would not affect the sovereignty and security of the country’s waters.
On the prosecution of former BNS managing director, Ahmad Ramli Mohd Nor, Hishammuddin said the action taken against the former navy commander should not be considered as a small matter.
He said the prosecution was carried out based on the PAC report, which indicated possible embezzlement involving several officials.
“If we want to look at political considerations, we want politicians who are considered as sharks to be prosecuted, but that does not mean that those who are being prosecuted now are small fry. It has been acknowledged by PAC (in the report),” he said.
Ramli was today charged in the sessions court with three counts of criminal breach of trust of the company’s funds, amounting to RM21.08 million, in relation to the LCS project.
On Aug 4, PAC disclosed that the committee had held nine proceedings regarding the LCS issue starting on Nov 18, 2020, and the last one on March 8 this year. It had called several witnesses and the results of the proceedings found that the LCS contract was awarded to BNS through direct negotiations. It said the government had paid RM6.083 billion for five ships to be delivered by August this year but not a single ship had been delivered.