PETALING JAYA: Mismanagement and irregularities in the littoral combat ship (LCS) project cost potential losses of RM890mil.
These were incurred due to overlapping Letter of Award (LOA), double claims, currency exchange, non-delivered items and alleged dummy payments to companies.
This was according to the forensic audit report by Boustead Heavy Industries Corporation Bhd (BHIC) which was declassified on Monday night.
Of the losses, RM537mil was due to double claims for the same services with different nomenclature related to service costs and combat system integration.
The report stated this was confirmed by Boustead Naval Shipyard Sdn Bhd (BNS) chief executive officer Capt (Rtd) Azhar Jumaat but noted that an expert opinion was required on the matter.
The report found an overlapping LOA issued to subcontractor Contraves Electrodynamics Sdn Bhd (CED) in 2012, for the Built-in Test (BIT) Centre, had cost RM305mil.
The report again noted that an expert opinion was also needed on this.
Also noted were losses due to alleged dummy payments for technical services to three companies related to the Second Generation Patrol Vessel in 2011 and 2012 to the tune of RM23.36mil.
Meanwhile, two LOAs were changed from ringgit to euros and resulted in a net loss of RM13.4mil to BNS.
RM6.78mil was also marked as a potential loss to Boustead Penang Shipyard Sdn Bhd due to the reorder of 23 non-delivered items by Alizes Marine.
There was also an RM4.58mil potential loss sustained due to additional Variation Orders issued in favour of IHC Metalix BV for Mill Certificate in 2017, despite its cost being part of the original request for quotation.
