MalaysiaKini / Apr 25, 2022
Putrajaya has been urged to table a white paper on the procurement of a littoral combat ship (LCS) from Boustead Holdings subsidiary which has long been delayed.
In a statement today, Bukit Bendera MP Wong Hon Wai said the white paper should cover all aspects of the procurement, including cost overruns, reasons for delays and leakages involved in the project.
A white paper is a Parliamentary practice in which the government explains policy decisions and invites public feedback.
Wong argued that the white paper was necessary as Malaysia has a reputation for corruption involved the defence sector, citing Transparency International’s defence integrity index (GDI) for 2020 which gave Malaysia a “D” grade.
Malaysia was behind neighbours Philippines and Singapore which were given the “C” grade (moderate risk of corruption), while Taiwan is the only territory in the Asia-Pacific region which received the “B” grade (low risk).
In view of this, Wong said it was necessary for the government to reveal the total amount of public funds that had already been used for the LCS project and how much more was needed to complete the project.
He also urged the government to declassify the Special Investigation Committee on Public Governance, Procurement and Finance (JKSTUPKK) report on the procurement of the LCS.
The JKSTUPKK, formed in May 2018, was headed that former auditor-general Ambrin Buang, who briefed then prime minister Dr Mahathir Mohamad on problems involving the project.
Boustead Naval Shipyard was commissioned in 2011. At the time, the defence minister was Ahmad Zahid Hamidi and the finance minister was Najib Abdul Razak. Zahid was replaced by Hishammuddin Hussein in 2013.
The ship was supposed to be delivered in 2019. However, in September 2020, Parliament was told that RM5.94 billion had been drawn down but works on the ship had not begun.
Last week, the cabinet pledged to complete the long-delayed project to fulfil Malaysia’s naval requirements and obligations toward 400 vendors involved in the project.
Defence Minister Hishammuddin promised that the process will be transparent, without leakages, abuse of power or corruption.
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