LCS: The RM9 Billion Invisible Ship

The University Of Malaya Student’s Union - Faculty Of Law (UMSU Law Faculty) would like to refer to the Malaysian Parliament’s Public Accounts Committee (PAC) report released on August 4th 2022 which stated that mismanagement had occurred in the procurement process of six Littoral Combatant Ships (LCS) which have yet to be delivered to the Royal Malaysian Navy (RMN). The six LCS ships are frigate-class vessels which can perform modern warfare such as anti-air warfare, anti-surface warfare, anti-submarine warfare and electronic warfare. Five ships were supposed to have been delivered by August 2022 whilst the final ship is scheduled to be delivered by October next year. However, as of now no ships have been delivered.

The PAC stated that contracts for the construction of the six LCS ships were awarded via direct negotiations between the Ministry of Defence and Boustead Naval Shipyard Sdn Bhd (BNS). The committee also confirmed that the government has paid over RM6.08 Billion of the cost of the project. It is disappointing to see that the government chose the option of direct negotiations instead of an open tender system for the construction of these six ships which were vital in ensuring that the RMN can protect Malaysia from any sea intrusions especially during this era of increased conflict in the South China Sea. It is also questionable as to why the government paid 66.65% (RM 6.08 Billion) of the total cost of the project despite no ships having been completed and delivered.

We would also like to point out that BNS was suffering from dire financial trouble and the money which was supposed to be used to construct the ships was spent on other things. We do also note that the Malaysian Anti-Corruption Commission has completed its investigation regarding this scandal and that Prime Minister, Datuk Seri Ismail Sabri Yaakob has declassified the Special Committee on Governance Investigation, Government Procurement and Finance's report on the procurement of the LCS ships and 2019 Forensic Audit Report on the LCS project.

UMSU Law Faculty would like to urge the Attorney General’s Chamber to prosecute those who were involved in this despicable scandal which has threatened our beloved nation’s security. We would also like to recommend that a Royal Commission of Inquiry (RCI) be set up to investigate this scandal and their report be made public. We hope that this scandal serves as a lesson to everyone involved as to why an open tender system is needed in Malaysia.


University Of Malaya Student’s Union - Faculty Of Law
18th August 2022

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KENYATAAN MEDIA 
LCS: Kapal Halimunan bernilai RM9 Billion

Kesatuan Mahasiswa Universiti Malaya - Fakulti Undang-undang (KMUM FUU) ingin merujuk kepada laporan yang dikeluarkan oleh Jawatankuasa Kira-kira Wang Negara (PAC) Parlimen pada 4 Ogos 2022 yang menyatakan bahawa terdapatnya salah urus dalam proses perolehan enam buah kapal tempur pesisir pantai (LCS) yang sehingga kini belum diserahkan kepada Tentera Laut Diraja Malaysia (TLDM). Enam kapal LCS tersebut merupakan kapal kelas frigat yang mempunyai keupayaan peperangan moden seperti peperangan antiudara, peperangan antipermukaan, peperangan antikapal selam serta peperangan elektronik. Terdapat lima buah kapal yang sepatutnya diserahkan pada Ogos 2022 dan kapal yang terakhir dijangka untuk diserahkan pada bulan Oktober tahun hadapan. Namun, sehingga kini, tiada sebuah kapal pun telah yang diserahkan. 

PAC menyatakan bahawa kontrak pembinaan enam kapal LCS tersebut termeterai melalui rundingan terus antara Kementerian Pertahanan Malaysia dan Boustead Naval Shipyard Sdn Bhd (BNS). Jawatankuasa tersebut juga melaporkan bahawa pihak kerajaan telah membuat pembayaran sebanyak RM 6.08 bilion daripada kos projek. Kami berasa hampa dan kecewa dengan tindakan pihak kerajaan yang memilih untuk menggunakan cara rundingan terus dan bukannya sistem tender terbuka untuk pembinaan enam kapal tersebut yang amat penting untuk memastikan TLDM dapat melindungi Malaysia daripada sebarang pencerobohan perairan, lebih-lebih lagi dengan konflik di Laut China Selatan yang semakin tegang. Tindakan kerajaan yang membayar RM 6.08 bilion, iaitu 66.65% daripada jumlah keseluruhan kos projek sedangkan tiada sebuah kapal pun yang disiapkan dan diserahkan turut menimbulkan tanda tanya. 

Kami juga ingin mengetengahkan fakta bahawa BNS pernah mengalami masalah kewangan yang teruk dan wang yang sepatutnya digunakan dalam pembinaan enam kapal LCS tersebut telah digunakan untuk hal-hal yang lain. Kami ambil maklum bahawa Suruhanjaya Pencegahan Rasuah Malaysia telah selesai melakukan siasatan mengenai skandal ini, dan Perdana Menteri, Datuk Seri Ismail Sabri Yaakob telah menyahklasifikasikan laporan perolehan kapal LCS yang disediakan oleh Jawatankuasa Siasatan Tadbir Urus, Perolehan dan Kewangan Kerajaan serta Laporan Audit Forensik 2019 mengenai projek LCS. 

KMUM Fakulti Undang-undang ingin menyeru Jabatan Peguam Negara agar melakukan pendakwaan ke atas pihak-pihak yang terlibat dalam skandal keji ini yang mengancam keselamatan tanah air tercinta. Kami juga mencadangkan bahawa sebuah Suruhanjaya Siasatan Diraja (RCI) ditubuhkan bagi menyiasat skandal ini dan laporan mengenai hasil siasatan disiarkan kepada umum. Kami berharap agar skandal ini memberi pengajaran kepada semua pihak yang terlibat bahawa terdapat kewajaran di sebalik sebab perlunya sistem tender terbuka di Malaysia. 



Kesatuan Mahasiswa Universiti Malaya - Fakulti Undang-undang
18 Ogos 2022
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References
https://www.channelnewsasia.com/asia/cna-explains-malaysia-navy-littoral-combatant-ships-rm9billion-defence-boustead-naval-shipyard-2871701
https://www.malaymail.com/news/malaysia/2022/08/12/horror-lcs-project-shows-exactly-how-not-to-do-defence-procurement-says-pac-chairman/22501
https://www.freemalaysiatoday.com/category/nation/2022/08/11/lcs-probe-completed-case-referred-to-agc-says-macc/
https://www.theedgemarkets.com/article/forensic-audit-report-lcs-project-be-declassified-governance-panels-report-be-made-public-%E2%80%94