PKR MP calls for external cost-benefit studies on LCS project

PKR MP calls for external cost-benefit studies on LCS project

Subang MP Wong Chen says this could be an alternative to conducting a royal commission of inquiry into the controversy.

It was recently revealed that not a single littoral combat ship was completed although Putrajaya had spent RM6 billion on the project.
PETALING JAYA:
An opposition MP has suggested that the government, under the supervision of the parliamentary select committee (PSC) on security, employ two “reputable” external consultants to study the littoral combat ship (LCS) project.

Subang MP Wong Chen said this was an alternative to conducting a royal commission of inquiry on the matter.

He said the consultants should be tasked with carrying out cost-benefit studies and present their findings as well as recommendations on the financial viability of the entire LCS project within six months.

Wong also said an audit on the technical and engineering capacity of the builders and consultants should be done.

Wong Chen.

“I am most interested to see whether the hulls of these ships can be salvaged and converted to cheaper and more proven smaller frigates,” he said in a statement.

Until these reports were completed and deliberated on by the government and the PSC, he said, turnaround professional managers should be introduced to take over the accounts and management of the builders.

“These turnaround managers must regularly report to both the government and the PSC. The builders can maintain engineering and technical control, but the focus should primarily be on the good maintenance of all five ships,” he said.

Wong pointed out that some construction work could be considered but the focus must be on trying to complete the one ship that was at the most advanced stage.

The LCS project has come under much scrutiny after Public Accounts Committee chairman Wong Kah Woh revealed recently that not a single ship had been completed although Putrajaya had spent RM6 billion on the project, which was given to Boustead Naval Shipyard Sdn Bhd (BNS) through direct negotiations.

There have also been calls for the government to declassify reports on the project and set up a royal commission of inquiry.

Putrajaya has agreed to declassify a report by the procurement and finance investigation committee under the then auditor-general Ambrin Buang.

The government has also agreed to declassify a forensic audit by BNS on the project, though this is subject to the advice of the attorney-general and the auditor-general.

Earlier today, former BNS managing director Ahmad Ramli Mohd Nor was charged in the sessions court with three counts of criminal breach of trust involving RM21.08 million. He pleaded not guilty.

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