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Articles, Opinions & Views: MP SPEAKS | The PAC's LCS site visit was heart-breaking - Wong Kah Woh

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MP SPEAKS | The PAC's LCS site visit was heart-breaking - Wong Kah Woh
Friday, August 12, 2022

Malaysiakini : Has all the equipment been paid for by BNS? No, not all have been paid. That is why we can read there were huge debts owed to the original equipment manufacturers, which eventually caused the work and supply to stop.

The site

We were then brought to visit LCS1 at the construction site. Looking at the outfit, one would not be able to tell that it was the same warship that was ā€œlaunchedā€ in 2017. But we know it is. Of course, the much-disputed mast is no longer there.

We went into the main block to see the progress of the actual construction. The Defence Ministry informed the PAC that the progress of the actual construction is 44 percent for LCS1.

We spent around one hour in LCS1 and went to the bus. The bus did drive us past the whole construction site for LCS 1 to LCS 5. There are no longer workers at the construction site, no locals or foreigners, no contractors, and no ongoing works. Totally zero, totally stalled. It is heart-breaking. As we all know, RM6 billion has already been spent.

No more money

In the earlier proceedings, we were told that BNSā€™ financial position is in dire straits due to the financial mismanagement of the company.

PAC member Wong Shu Qi asked whether all RM6 billion had been spent by BNS. BHIC CEO Sharifuddin admitted ā€œmemang duit kita sudah habisā€¦ company memang tidak ada duit dan memang akan lingkup pun besok silap-silap.ā€ (Our funds had already run out, the company really has no money and can even fold tomorrow.)

Staff salaries had been cut since October 2020, EPF contributions have not been paid since May 2021. BNS is merely relying on some small jobs like repair works for the navy to survive. (Pg 49 Hansard)

Sharifuddin further informed the PAC that if BNS is gone, Boustead Holdings and the Armed Forces Fund Board (LTAT) will be affected severely. Plantations, Pharmaniaga, Boustead Properties and Boustead Hotels all will be affected. It will go as far as LTAT losing up to 46 percent of the fund size. (Pg 52 Hansard)

Heart-breaking

It is sad, really sad. Heart-breaking. The first thing in my mind was how could a company which landed an RM9 billion contract from the government come to this stage? It is more than mismanagement. Something is gravely wrong, with those who were in power and those who got the contract.

I hope the PAC Report on the LCS can help the nation by serving as a definitive textbook on how to not conduct defence procurement, and how power and processes should not be abused. The horror story of the LCS project shall serve as a lesson to those in power, now and in the future.

posted by Major D Swami (Retired) @ 4:50 PM  
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