Malaysian Navy’s LCS construction progress scrutinised after RM6.083bn payment

The Public Accounts Committee (PAC) in Malaysia is set to investigate the construction progress of the Royal Malaysian Navy’s (RMN) second-generation littoral combat ships (LCS). The committee will visit the RMN naval base in Lumut, Perak, where the LCS construction is taking place. The PAC plans to submit progress reports on the LCS every three months to the Dewan Rakyat, focusing on developments made from October 2022 to May 2023.

Previously, the LCS construction faced controversy when it was revealed that no units had been completed, despite the government paying US$6.083 billion to Boustead Naval Shipyard Sdn Bhd (BNS). In addition to the LCS investigation, the PAC will call on the secretary-general of several ministries to address issues related to their respective departments.

On June 14, the Agriculture and Food Security Ministry’s secretary-general will be questioned about weaknesses in fund receipts and the Padi Price Subsidy Scheme. The secretaries-general of the Ministry of Health and the Ministry of Science, Technology and Innovation will be called on June 15 to discuss procurement and management of the Covid-19 outbreak, including the issue of 1.1 million doses of expired vaccine, 93 unusable ventilator units, and excess stock of boots and protective suits.

Furthermore, the secretary-general of Treasury, the secretary-general of the Ministry of Rural and Regional Development, and the CEO of Felcra Bhd will be summoned on June 27 to address the fact that Felcra’s audited financial statements for 2019, 2020, and 2021 have not yet been finalised. The PAC will also receive a briefing on the Jana Wibawa Programme from the Ministry of Finance.

PAC chairman Datuk Mas Ermieyati Samsudin expressed hope that the committee’s proceedings would be open to the public from next year, in line with the government’s institutional reform agenda. “I believe the administration of Parliament has prepared and has the ability in terms of human resources and information technology equipment to carry out open proceedings,” Samsudin said.