KUALA LUMPUR: The Public Accounts Committee (PAC) has urged the government to move swiftly to resolve issues arising from Norway’s cancellation of an export licence for missiles intended for the Littoral Combat Ship (LCS) programme.
The committee said the government must ensure the delivery timeline of the project remains on track.
The issue involves the Naval Strike Missile (NSM) system originally designated for the LCS programme.
This prompted PAC to seek a special briefing from the Defence Ministry on June 23 on the implications of the decision by Norway.
PAC chairman Datuk Mas Ermieyati Samsudin said the committee hoped the government would remain fully committed to monitoring the LCS delivery schedule.
This is to ensure the vessels are completed with fully functional combat systems.
“It is PAC’s hope that the government will provide its full commitment in monitoring the LCS delivery timeline so that the ships can be completed with complete defence systems and full combat capabilities,” she said in a statement on Wednesday (June 24).
The committee also called on Putrajaya to strengthen mitigation and diplomatic efforts to secure a fair resolution following the cancellation of the export licence.
Mas Ermieyati said the committee had expressed serious concern after being informed that the government had already paid about 95% of the overall contract value.
She said the government should make full use of negotiations or legal proceedings to seek appropriate compensation in accordance with the terms agreed under the contract.
