Defence Ministry: France's Naval Group committed in meeting LCS project deadline

KUALA LUMPUR: France's Naval Group has given its assurance in supporting the government's efforts in resuming the Littoral Combat Ship (LCS) project.

The Defence Ministry said the Naval Group also expressed its commitment in ensuring the LCS ship is completed within the time frame set by the government.

ALSO READ: PAC: Explain inconsistencies in LCS forensic audit

"The company also agreed to resume talks with Boustead Naval Shipyard Sdn Bhd (BNSSB) on the price," the ministry said in a statement on Friday (Oct 21).

The latest development is a significant and positive step in the LCS project and will be able to strengthen efforts to ensure the project resumes smoothly, the ministry said.

ALSO READ: Local vendors pledge to work together on LCS project

This follows a discussion between a Malaysian delegation and Directorate General of Armaments (DGA) international directorate director Gaël Diaz De Tuesta, France's Defence Ministry and the Naval Group recently.

"The Malaysian delegation consisted of ministry secretary-general Datuk Seri Muez Abd Aziz, deputy Navy chief Admiral Datuk Abdul Rahman Ayob and Armed Forces Fund Board (LTAT) chief executive Datuk Nazim Rahman as well as several others.

ALSO READ: Hishammuddin: LCS mobilisation phase going as planned

"The meeting was conducted during a working visit to Euronaval in France," the ministry said.

Earlier this month, Defence Minister Datuk Seri Hishammuddin Hussein said the mobilisation phase for the LCS project was running smoothly.

ALSO READ: LCS scandal: MACC yet to decide whether to call up Latiff over alleged links

He said this phase, slated for June to December this year, involved a number of efforts by the government, especially his ministry, the Royal Malaysian Navy, LTAT and BNSSB.

A number of matters were concluded in the first three months of the phase, he added.

ALSO READ: Abdul Latiff’s lawyer issues letter of demand to auditors over LCS project

"On the commercial side, two things are going on. BNSBB has concluded talks with 145 local vendors and 42 overseas original equipment manufacturers (OEMs).

"The local vendors and OEMs have pledged to support... BNSBB to resume this project.

ALSO READ: Handover of first LCS still within same timeline, says Hishammuddin

"Efforts to end the involvement of middlemen Contraves Advanced Devices (CAD) and Contraves Electrodynamics Sdn Bhd (CED) are currently being pursued.

"It will enable BNSBB to negotiate with OEM and vendors directly. This can reduce the cost of ship equipment," he said.

On Aug 4, the Parliament’s Public Accounts Committee (PAC) revealed that some RM1.4bil in government allocations for the LCS project had been used for other purposes, including cost overruns.

The two-year probe by PAC also revealed that the RM9bil project was done through direct negotiations with BNSSB and was inked in 2014.

Two reports were subsequently declassified, including the one by the governance, procurement, and finance investigation committee, which said that the cost of completing the six LCS might balloon to RM11.145bil.

On Aug 17, former Navy chief Tan Sri Ahmad Ramli Mohd Nor, who is the former managing director of BNSSB, was charged with three counts of criminal breach of trust involving RM21.08mil over the project.

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In Nation

Wisma Putra: M'sia condemns attack at Azerbaijan embassy in Tehran
Floods: Number of evacuees in Johor goes up slightly to 2,216 from 2,191 earlier
IGP promises transparent probe in Tawau murder case
Umno purge: This is not the end, merely a beginning, says Hisham
Unbowed, unbent, unbroken, says Khairy over Umno sacking
Zahid: No need to call for emergency yet, floods under control
Dr Wee visits latest flood relief centre to open in Ayer Hitam
Possible flash floods in Johor, Pahang, Sarawak
Fire breaks out in Taiping's Tupai industrial zone, no casualties reported
Umno purge: I'd rather be sacked than in be cahoots with current party leadership, says Noh

Others Also Read