PETALING JAYA: The French government has given its commitment to ensure that the littoral combat ship (LCS) project becomes a priority for all stakeholders, says Datuk Ahmad Nazim Abdul Rahman.
The Lembaga Tabung Angkatan Tentera (LTAT) chief executive officer said, in a statement Thursday (Sept 8), that the commitment was conveyed by the French government via a letter to Defence Minister Datuk Seri Hishammuddin Tun Hussein.
ALSO READ: LCS scandal: MACC yet to decide whether to call up Latiff over alleged links
“Naval Group, a holding company of the French government, is a company which designed the LCS ship and is the main anchor of the 43 European companies involved in this project.
“Renegotiating with these companies is a complicated process that requires government-to-government (G2G) relations,” he said.
ALSO READ: PKR lodges MACC report into links between Abdul Latiff and LCS
He said the supporting statement by the French government shows a commitment that all stakeholders are now working together to ensure the completion of LCS.
Ahmad Nazim added that the board of directors of Boustead Naval Shipyard (BNS) has also decided to cancel the project’s contract award letters to Contraves Advance Devices Sdn Bhd (CAD) and Contraves Electrodynamics Sdn Bhd (CED), which were worth RM3.4bil.
ALSO READ: LCS scandal: Cops record Latiff's statement over report against Rafizi
“Both companies are the 'middlemen' that are currently being investigated for various allegations of corruption and violations of the law.
“This decision will enable BNS to negotiate directly with production companies and at the same time, reduce the overall construction cost,” he said.
ALSO READ: LCS scandal: Rafizi ready to cooperate on police investigation into comments on Abdul Latiff
He added that as the decision is also one of BNS' commitments, as the project’s main contractor, to ensure that the LCS project continues without the involvement of doubtful corporate actions.
“As one of the shareholders of BNS, LTAT will continue to take concrete steps to ensure the implementation of this project through a transparent process,” he said, adding that the focus is now on mobilising processes to ensure the ships can be completed within the new timeframe.
