PUTRAJAYA: A “mutual termination” will be used following the failure of a ship building company failing to deliver two of the three promised Offshore Patrol Vessels (OPV) for the Malaysian Maritime Enforcement Agency (MMEA), says Datuk Seri Saifuddin Nasution Ismail.
The Home Minister, when met at the National Registration Department headquarters here after an appreciation ceremony, said that the Cabinet had agreed to the matter following the company only delivering one ship, KM Tun Fatimah, which was also behind schedule.
"The Cabinet has decided on a mutual termination agreement with the company. This decision was made because the government had spent over RM600mil and injected another RM152.6mil just to complete a single vessel.
"So we must proceed with the project, and we need to find a solution to ensure that the MMEA, as the end user, receives the ships it requires to safeguard our maritime borders,” he said.
Previously the government had signed an agreement with THHE Destini in 2017 to supply three OPVs to the MMEA.
The vessels were initially scheduled for delivery in 2022.
